What is a current account?

A current account is a form of deposit account that allows, among others, payment by way of cheques 1.

This Knowledge Base category highlights the basic requirements relating to the operation and maintenance of a current account as well as some useful tips to safeguard your account.

Introduction

• Who is eligible to open a current account in Malaysia? Where can I open a current account in Malaysia?
• What are the requirements for opening a current account in Malaysia?
• What types of current account are available in Malaysia?
• How do I use a current account?
• What are the parts or elements of a cheque?

Safety Tips

• Safety Measures: What are the do's and don'ts of using cheques?
• What are the duties and responsibilities of a current accountholder?
• What should I do if I found that some cheques missing from my cheque book?

Cheque Payments

• How does the bank verify my signature on a cheque? Can I add additional signer to my current account? How do I change my signature?
• What are the reasons for cheques being returned unpaid?
• What is the cheque clearing process in Malaysia? How does the cheque clearing process work? How long does it take for a cheque to clear?
• What is clearing day-hold?
• Who is responsible for dishonouring my cheque?
• If a cheque is made payable to a company, e.g., ABC Sdn. Bhd or 'bearer', can the 'bearer' of the cheque encash it over the counter?
• Can a cheque be made payable to two parties i.e. A or B?
• Are "account payee only" cheques transferable?
• What can I do if the cheque I banked in was returned to me for reason "account closed"?
• Why do banks charge customers for encashing account payee cheques?
• What is the difference between order cheque and bearer cheque? What is a bearer cheque? What is an order cheque?
• What is a post-dated cheque? Can I deposit or cash a post-dated cheque? Is post-dating a cheque illegal?
• How long is a cheque valid in Malaysia? Do cheques have an expiry date? What is stale cheque?
• Can I, as the issuer, alter or modify any detail on a cheque and counter-sign in full next to the alteration?
• What should I do if a cheque which I have deposited has been returned to me by my bank stamped "refer to drawer"?

Account Maintenance

• When does a current account become classified as inactive? What happens to inactive current account in Malaysia?
• Under what circumstances can a current account be closed?
• Does the bank have the right to request that I close my account with them?
• Can my wife operate my current account when I am overseas?
• How do I close my current account?

Others

• What is a banker's cheque?
• If I accept a cheque denominated in foreign currency, what charges will I incur and how long will it take before I can get the money?
• What is the foreign cheque clearing process in Malaysia?

References

1. Cheque - A bill of exchange, which is an unconditional order in writing, addressed and signed by the drawer to instruct the drawee bank to pay on demand a certain sum of money to the payee or bearer.

Reprinted with permission from BankingInfo (A Consumer Education Programme by Bank Negara Malaysia)

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