Types of Checking Accounts in Malaysia |
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▪ Personal Current Accounts – are operated in your name. ▪ Business Current Accounts – are opened in the name of the business and are operated by the nominated signatory(ies). ▪ Islamic Current Accounts – They are Shariah compliant and are based either on the concept of Wadiah (safekeeping of deposit) or Mudharabah (profit sharing) and may pay Hiba (gift) or a share of profits in lieu of interest. |
▪ Joint Current Accounts – are operated by you jointly with others. ▪ Hybrid Current Accounts – These accounts combine features of Savings Accounts (interest paying) along with features of Current Accounts (cheque facility). ▪ Foreign Currency Current Accounts – These accounts enable account holders to maintain their balance in one or more foreign currencies. |
A checking account or a current account is an account through which you can deposit, withdraw and transfer funds. We’ve put together this nifty little guide to help you choose a checking account suitable to your current requirements:
Review the cheque book feature We all know that the determining feature of checking accounts is the cheque writing facility. Even here, there are ways that some banks distinguish themselves from their peers. Does your bank automatically issue you a new cheque book when you are down to the last few leaves in your current cheque book, at no additional cost? Also check out the charges other than stamp duty that are levied on new cheque book issuals.
Not just cheques… A truly flexible current account provides you with multiple payment modes including cheques. These include GIRO transfers, bill payments, fund transfers, ATM withdrawals etc. Provision of an ATM or Debit Card (check out if any charges are applicable) will make this account even more flexible.
Some banks even offer you “sweep” facilities – a feature that sweeps in cash from a linked savings account to cover any shortfall in your checking account when a cheque is presented for payment, making this a truly versatile payment account.
Finally, check that there are no or low restrictions on funds withdrawal.<
Digital age banking Internet banking, Phone banking, Mobile banking, App banking… make sure your current account provides you will all necessary digital age accoutrements.
How about overdraft? An Overdraft is a credit facility extended by a bank to a Current Account holder which enables the holder to withdraw more than what is in the account. Does your bank offer you an instant overdraft facility with reasonable rates and terms? Businesses will find this to be a very useful feature.
Understand checking account categories There are a wide range of checking accounts available in Malaysia. Go through their features, schedule of charges and fine print carefully before deciding upon one which is best suited to your requirements.