What is a Current Account and Do You Even Need One?

Not sure what a current account actually is? You are not alone! Here’s a quick and easy guide to get you up to speed on the subject.

What is a Current Account?

It is similar to a savings account in that you can deposit your money and also make withdrawals but differs in terms of payment options, among others. Current accounts let you issue cheques as a method of payment while savings accounts are not equipped with this facility. This is one of the key features that separate the two.

In addition, basic current accounts traditionally pay little to no interest on your account balance where some special current accounts do still offer attractive rates. However, you may need to make a higher initial deposit and maintain a larger minimum balance before receiving interest earnings. Note that you can still use regular services like internet banking and ATM facilities but you may need to pay service and maintenance fees if your account is not holding the minimum balance.

Who Can Open A Current Account?

Banks in Malaysia offer this facility to citizens, permanent residents and foreigners (with discretion for the applicant’s native country) aged 18 and above. Current accounts may require an introducer that holds an account with the bank to vouch for the applicant; however some accounts forgo this requirement.

In general, current accounts involve a slightly larger initial deposit than a savings account with the amount ranging from RM250 to RM1,000 for basic accounts and even up to RM5,000 or more for premium, high-interest accounts.

Other Special Features and Benefits

While current accounts cost a little more to maintain, they do come with some advantages that could be worth the extra charges, such as:

  • An overdraft facility which allows for withdrawals that exceed your account balance within an agreed amount. It can be helpful to reduce the possibilities of bounced cheques and give flexible access to quick cash. Note that overdraft amounts do incur additional fees.
  • Personal Accident Insurance that is offered as an extra benefit with some current accounts. You can call up your bank to find out more on this feature.
  • Monthly statements that are provided free of charge to help keep track of all incoming and outgoing transactions.

Do You Need a Current Account?

If you have larger amounts of savings to deposit every month, you could enjoy the higher interest rates offered for these accounts with the added chequing and overdraft facilities.

However, if your deposits and account balance aren’t able to meet the minimum requirements, then you may not earn interests on your savings and perhaps even end up paying more in maintenance and service fees. Thus, if you don’t often issue cheques when making payments, a savings account is probably a better choice.

If you do indeed need to open a current account, we can help you find one with just the right perks and rates. Just scoot on over to our comparison page to make a discovery!


Agree or disagree with this post? Questions? You also have your word!

  • Yusof

    Where my money

    • RinggitPlus

      Hey Yusof,

      We are not sure what your question or comment is about. Is there anything we can assist you with?

      Thank you.

    • Panju

      What is the different bank current acc,basic current acc and Islamic current acc i_e

      • RinggitPlus

        Hi Panju,

        Main difference you will see is you will receive interest (interest rate) for conventional current accounts and you will receive a profit (profit rate) for Islamic accounts.

        If you are looking to compare the different types of current accounts being offered by all the banks, please do visit our comparison page and apply for one that suits you.



      • Joanne Kiprais

        My fiance wants to send me 4500 dollars from a Malaysian to my bank in the USA. Is there a restriction on how much money you can send overseas?

      • Eddie

        How much money should i keep in my Current account in Malaysia .So that rest i can keep in FD...thanks

        • RinggitPlus

          Hi, Eddie

          This part depends on your financial status, which is personal. As such, it is difficult for us to recommend any amount on your financial planning without knowing your status. What you can do is to consult a financial advisor to help you with this matter.

          Thanks for the question and we hope this helps.