Current Accounts or Checking Accounts, as they may also be called, are a banking product into which deposits and withdrawals can be made. Here, we will take a brief look at the major types of current accounts available in Singapore and some of their defining features:
Conventional current accounts
These accounts offer you flexible payment options including the option of writing cheques. Nowadays, most current accounts also provide a number of other features by default (just check out the charges and fine print, though): Internet banking, phone banking, mobile banking, an ATM or Debit card, e-statements and more.
Other features that may be provided include standing instructions to facilitate regular payments, overdraft facility, GIRO facility, auto issue of cheque books and automated top-ups that work by linking current and savings accounts; your savings account is tapped to cover cheque payments when current account balances run low.
These accounts are generally non-interest bearing. Standard current accounts (Singapore dollar accounts) enjoy protection and are insured by the Singapore Deposit Insurance Corporation (SDIC) for up to S$50,000 in aggregate per depositer per bank.
Foreign currency current accounts
Standard Chartered Bank offers a Foreign Currency Current Account against a range of currencies – USD, GBP, EUR, AUD, NZD, CHF and HKD. Cheque book is available for USD currency accounts.
Islamic current accounts
These current accounts provide you with all the basic features of traditional current accounts in addition to being Shariah-compliant. They are generally offered on the basis of the Shariah principle of Wadiah (safekeeping). These accounts too enjoy SDIC protection.
The Current Account-i from Maybank is an example of an Islamic current account offered in Singapore.