New Cheque Processing Fee

Back in Year 2012, I used to have a current account with a cheque book to pay for bills. Then IBG fee was reduced to 10 cent starting from May 2013 to encourage people to use electronic banking. Since then I settle most of my bills via Internet Banking. From 1st April 2014, there will be additional processing fee of RM 0.50 imposed on the issuer of cheque. This is another move to promote online banking.

Current Account

20 years back, when Internet banking still did not exist in Malaysia, Current Account was meant for businessmen only. Back then, the public could not simply apply for the account without an introducer. The current account has zero interest for the money kept inside the account and yet account will be charged monthly maintenance fee. As a current account holder, you are allowed to use cheques as a way to make payments. 

Now, Current Account has become an account for almost everyone. No introducer is required, zero monthly maintenance fee and you can even get high interest to keep your money inside.

I find that it is very convenient for working people like me as well to make use of the checking facility. Why?

1. When I want to pay for credit card statement near the due date, the Cash Deposit Machines (CDM) are either always lined up or broken down. On the other hand, the Cheque Deposit Machines (CQM) are always up and running.
2. When I insert notes into the CDM, everytime it will reject a few pieces and I have to retry a few times. The CQM would not reject your cheque.
3. It's a lot more safer to carry a cheque book around instead of carrying a pile of cash in my pocket.

I'll share more on the Current Accounts offered by major banks in Malaysia in my next post. See you!