How an Islamic current account works?
Kuwait Finance House Current Account-i is a call account or demand account that is based on the Qardh principle, i.e. a non-interest bearing account. In other words, your deposit is not exposed to any profit and loss or any risk in investment.
It is also known as a checking account because you will also get the flexibility of cheque writing.
What can I get from Kuwait Finance House Current Account-i?
As a complementary perk for depositing your money into this Islamic current account, you will get a free KFH Debit Card-i, whereas a cheque book will be issued to you upon request. There is no fee for cheque book issuance, only a Stamp Duty of RM0.15, applicable per leaf.
You can perform unlimited transactions including withdrawing cash at any KFH ATMs or other selected banks through MEPS and HOUSe, with the former charging you only RM1.06 fee while the latter is RM4.24, both inclusive of GST.
To manage your money efficiently, you will be given an internet banking account via KFHonline and a free monthly statement for an easy tracking of your transactions.
Do I get a Cash Line Facility-i upon current account opening?
Unfortunately, Cash Line Facility-i is not available for this basic current account-i. Cash Line Facility-i is the Islamic equivalent of an Overdraft Facility whereby you can draw down (in other words, borrow) cash from you current account up to a limit set by the bank.
Think of it as something along the line of a revolving credit, once you have paid up the amount you borrowed at maturity, you can withdraw again cash whenever is needed.
What are the fees and charges I should know?
These are few but significant fees and charges you should be aware of:
- Half yearly Service Charge: RM10, if average balance fall below RM1,000
- Early Account Closure: RM20, if closed within 6 months of opening
- Debit Card Annual Fee: Free for life
- Cheque Processing Fee: RM0.53 per leaf, plus RM0.15 Stamp Duty
- Dishonoured Cheque: RM100, due to insufficient funds
- Stop Payment Cheque: RM10, upon instruction
- GST: 6%, where applicable
Who can apply for this Islamic current account?
Kuwait Finance House Current Account-i opens to all Malaysians and permanent residents aged 18 years old and above. Individuals must have at least RM1,000 deposit in their pocket right now and an introducer.
If you are opening one for your organization (including SMEs), it needed to be registered in Malaysia and must have a minimum initial deposit of RM5,000.
Is my money protected under PIDM?
Absolutely. Your deposit will be protected under PIDM for up to RM250,000.
Do I need a current account?
Depending on your banking and transactional needs, current account allows you to make withdrawal and deposit your money just like a Savings Account, except that you have the convenient of writing a cheque when you need to make a large payment.
Business entities and individuals can also access the Overdraft or Cash Line Facility to finance for working capital and short-term liquidity.