A current bank account is open by businessmen who have many regular transactions with the bank. The transactions include deposits, withdrawals, and contra transactions. It is also known as a Demand Deposit Account. A current account can be open in any corporate and commercial bank like ICICI Bank, Singapore. In a current account, an amount can be deposited and withdrawn at any time, without giving any notice. It is also suitable for making payments to creditors via checks. Checks received by customers can be deposited in your current bank account. Also, the customers can withdraw the amount they need by checks. They do not get any interest because of the fluidity these accounts offer. Current account holders do not get any interest on the balance in the current account with the bank. They have one advantage of an overdraft facility.

What Do You Know About Current Bank Account in Singapore

Current bank account

Current bank accounts are popular among firms, companies, and businessmen. A current account is a zero account, so it is generally associated with huge transactions on a regular basis. They do not carry a limit on the number of transactions that can be made. There are some features of the current account.

They are:

  1. Current bank accounts are open to run a business.
  2. The current account is a non-interest bearing bank account.
  3. It requires a higher minimum balance to maintain as comparing to the savings account.
  4. In case, the minimum balance is not maintained in the current account, the penalty is charged.
  5. There is no restriction on the number and amount of deposits.
  6. It does not promote saving habits with its account holders.
  7. The main objective of a current bank account is to enable the businessmen to conduct their business transactions smoothly.
  8. It charges interest on the short-term funds borrowed from the bank.
  9. It is of a continuing nature as there is no fixed period to hold a current account.
  10. The account enables the businessmen to carry the business transactions properly and adequately.
  11. It helps the businessmen to make a direct payment to their creditors by issuing checks, demand drafts or pay orders.
  12. It also enables the current account holder to obtain an overdraft (short-term) facility.
  13. The current account facilitates the industrial progress of the country. Without its help, businessmen would face difficulties in running their business smoothly.
  14. It has the facilities of internet banking and mobile banking to carry out business transactions with ease.
  15. It provides other advantages too like deposit and withdrawal of money at any location, multi-location funds transfer, electronic funds transfer, support from customer care executives, and periodical (monthly, quarterly, yearly) email.
  16. The current account assists the creditors of the account holder who can have access to information on the account holder’s credit-worthiness through interbank

Now, you must be thinking about how to open a current bank account? Here it is:

Step 1:

Walk to any co-operative or commercial bank and meet their customer service representative.

Step 2:

Fill an account opening form (Account Opening Form or AOF) and give them proof of your identity and residential address. Carry the original documents for verification at the time of account opening. Please note that:

  • The proof of your identity must be issuing by a public authority, and it should include the applicant’s name, date of birth, nationality, your signature, and a photograph of the bearer. For example NRIC/EP/DP/PEP and Passport.
  • The address proof must be issued by recognized authorities, banks, or utilities. It should include the full address of the applicant, and it could be in the form of utility bills, driving license, tax bills, bank statements, or others. These proofs are requiring as per the Government Regulations. So, the bank may verify the proof of the identity and the address which you submit.

Step 3:

You can open the Affinity Account with a minimum of SGD 100. To fund your Affinity account, you can give them a check drawn on any bank in Singapore. Besides that, You can even give them cash deposits, NETS Debit card, E-Giro, or Demand Draft to fund your account.

There are no minimum balance requirements to operate your affinity account. In case, the total monthly balance of your accounts falls below 250 currency units, administrative charges of 3 currency units per month may apply. The administrative charges would be calculating by adding the daily closing balance of all the accounts under your customer ID with them for a month and then dividing it by the total number of days of that particular month.

But if the account is in dormant status, the charges are levied on the account. But if the account is in the freeze status, charges would not be applied. If the account has been opened during the month, the account will be exempted from the application of the MAB charges for that month. But, from the next month, the account will be considered for the MAB charges. But these charges will be levied on the current account.

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