Using a bank account can help you store money safely and provides you with opportunities to invest. Not only that, using a bank account is convenient and can help you easily stay on budget while tracking your spending. In Malaysia, there are a variety of deposit accounts available. Below are several examples of different bank accounts, what you should know before you open them, and the built-in protection you’ll have once you do.
The current account allows you to write cheques. You may also withdraw money from a current account using an ATM or a debit card. Current accounts also provide attractive interest rates, but only if your deposits are large. If you don’t plan to deposit a lot of money into your account, you may be better off using a savings account instead. You must be at least 18 years old to apply for a current account and you should have some money set aside to deposit into the account once it’s opened.
Just as a current account, a savings account allows you to withdraw money in the form of an ATM and debit card. You may not write cheques for money deposited in a savings account. You do not need a certain amount of money to start reaping the benefits of any interest rates that are available. If you are applying for a savings account, you need to set aside far less money than for a current account as there isn’t a minimum deposit.
Choosing an Account
Both current and savings accounts have their own purposes. Some people may even prefer to open both. If you frequently write cheques, you will have to open a current account. Are you unsure which bank to start with? Apply for new bank account here.
Perbadanan Insurans Deposit Malaysia (PIDM)
PIDM is a part of the government that oversees the security of your money in banks. PIDM does this by insuring your deposits and insurance policies. PIDM is an integral part of the Malaysian banking system and you do not need to complete any separate application to be protected by them.
Your bank deposits of up to RM250,000 are protected under PIDM. If your bank fails for whatever reason, the agency will be able to reimburse you for your loss up to RM250,000. You must note that investment banks are not covered under PIDM but all commercial banks with the BAFIA license are. Any foreign bank located in Malaysia and Islamic banks are covered by PIDM as well.
How Does PIDM Operate?
PIDM is a part of the government but they are officially run by a Board of Directors. The Minister of Finance is responsible for appointing the Board. Board members are chosen based to represent the public and private sectors of banking as well as the financial sector of the government. Commercial banks must make yearly payments to PIDM to be official members. This is the reason that you need not pay individual fees to PIDM, since fees are already paid by the banks.