A Current Account is a type of deposit account into which deposits and withdrawals can be made. Current Accounts are available at all banking institutions in Malaysia and are used for both personal and business purposes. All Current Accounts, including both conventional and Islamic ones are protected by PIDM insurance. The following lists a few important features that you need to look into before you decide to open a Current Account:
1. Cheque book facility
One of the most important facilities made available by Current Accounts is the cheque book facility. With this facility you can also make payments by cheques. Certain charges like stamp duty are mandatory with the issue of new cheque books. However, banks may also impose other charges when issuing new cheque books. Check for a bank which will automatically issue you a new cheque book when you are down to your last few leaves in your present cheque book, at no additional cost.
2. Interest
Many Current Accounts do not offer interest. However, some Current Accounts do offer interest; the rate of interest can vary from bank to bank, so shop around. Also, remember that those Current Accounts that do offer interest also have additional conditions like maintenance of minimum balance which if not maintained will lead to penalties. So, look at all the conditions involved before you decide on an interest paying Current Account.
3. 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. Overdraft facility may not be automatically given to a Current Account holder; the holder may need to maintain the account for a certain period, show active usage and may need to make an application. Although this is a great facility to enjoy it goes without saying that one needs to look at the terms involved before availing of this facility.
4. Additional Features
Phone Banking, Internet Banking, an international ATM card, the ATM and branch network of the bank, monthly statements, charges involved in the operation of the account, additional facilities like a “sweep” facility which sweeps in cash from a linked savings account to cover for any cheque payments etc are all important features to look for before deciding upon a Current Account.