INTRODUCTION

A current account is a form of deposit account that allows, among others, payment by way of cheques. This booklet highlights the basic requirements relating to the operation and maintenance of a current account as well as some useful tips to safeguard your account.



WHO CAN OPEN A CURRENT ACCOUNT

Different banks have different criteria for opening a current account. Generally, banks would only consider the application if the applicant is:

- 18 years old or above
- not a bankrupt
- of sound mind and has the mental and physical capacity to operate the account properly

For business owners and professional entities, they must ensure that they are properly registered with the relevant authorities. However, a bank has the discretion to accept or decline an application to open the account.




REQUIREMENTS TO OPEN A CURRENT ACCOUNT
- You must be physically present at the bank
- You need an introducer acceptable to the bank. This is to enable the bank to obtain references on you. Normally, the introducer is an existing customer or someone known to the bank
- You need to provide certain identification documents such as your identity card or driving licence to substantiate your identity
- You need to put an initial deposit as specified by your bank


In addition, for a business / society / club / association / professional registered withprofessional bodies (e.g. Malaysian Medical Association etc), you need to provide the business registration, board resolution, memorandum and articles of association, share allotment form and list of directors and secretary (for company account) or list of current board/committee members (for society account).



USAGE OF A CURRENT ACCOUNT

You can start using your current account once it is approved by your bank. Withdrawals from your account (subject to the available balance in the account) can be made either through cheques or ATM cards (issued to individual accountholders only) or by electronic means. There is no need to maintain the initial deposit amount i.e. the minimum amount required to open the account, once your account is in operation. You do not earn interest on the balance in your current account. However, for a hybrid account, that is, an account that combines the features of both a current and savings account, you may earn interest from the savings portion of the account.



SIGNATORIES AND CHANGES OF SIGNATORIES


When you open a current account, your bank will require your specimen signature. The bank will compare your signature on the cheque issued by you against this specimen signature. If the signature is different, the bank will refuse to pay the cheque and return the cheque on the ground that “signature differs”. For a joint current account, all the account-holders’ signatures must be provided together with specifi c instructions as to who can operate the joint account.