A current account or a checking account, as it is also called, is a type of deposit account into which deposits and withdrawals can be made. The defining feature of current accounts is the check writing feature; you can make payments through checks issued by the bank where you hold your current account.
Current accounts are available at all banks in Singapore and are used for both personal and business purposes. Today, current accounts have evolved and offer far more features that make banking easier and more convenient. Given this, here are a few pointers on how to make the best possible use of a current account:
Branch-less banking – As opposed to a decade or so ago when branch banking was virtually the only channel through which you could conduct transactions, today banking services are available online over the Internet including online fund transfers, through 24/7 phone lines, through mobiles, through SMS and through mobile apps and also ATMs. Make use of all these channels to conduct your current account banking transactions.
Auto-issue of check books – Let us turn to the defining feature of current accounts – check books. Although a few banks do offer free check books, a more useful feature (because this could be balanced out by high deposit requirements or high charges) to look out for would be auto-issue of fresh check books when your current supply starts running low.
Check charges – How about $2 per check? Would you call that exorbitant especially if you are writing a lot of checks? Use a current account that has far more reasonable charges.
Automated top-ups – This feature is mostly available if you choose to link your current and savings accounts. If your current account balance is not sufficient to cover a check payment, money will automatically be swept in from your savings account. All that you need to do is ensure that there are sufficient funds in your savings account.
Monthly statements – The days of passbooks are long gone. Today, you can choose to get your monthly statements by mail or e-statements by email. Of course, you can always login to your account online and take a statement of your transactions for the last two weeks, one month, two months or whatever period that you choose for.
Other features – Standing instructions to facilitate regular payments, overdraft facility, GIRO facility, ATM/NETS card, reasonable minimum initial deposit to be maintained and a reasonable schedule of charges are some of the other features that will facilitate better banking.