Overview
Before diving deep into the fundamentals of a bank account, let’s look through what actually is a bank account and why it is important to have one registered for yourself. Having a bank account has become more of a need than want nowadays. People, especially working adults and even students need to use a bank account for all their transaction needs, be it to withdraw or to bank in cash to another party. Online bank account registration Malaysia allows the creation of a bank account as early as 6 months hence parents nowadays don’t seem to miss the opportunity to open a bank account in their children’s name and start saving for their future.
Besides, an active bank account is needed if you are ought to invest in an insurance plan. Students who are in college use the facilities of a bank account to apply for a loan, which then is used to receive their loan. They are able to cash out their savings for their use. Grown adults on the other hand would receive their salary, apply for property loan and even make investments via bank account.
Types of bank account
Fixed deposit account
A fixed deposit account or also known by the term tenure, is a type of account where one would need to deposit a certain amount of money at first and are not allowed to touch it for a certain period of time. It works in the bank rewarding you with a fixed interest rate at the point of withdrawal. People usually use this method if they have a good sum of money and wish to invest it. The longer the money is left there then the more money you are able to withdraw. However, you can only start withdrawing the money until the agreed term comes to an end so in case of emergency you are not able to withdraw it.
Savings account
A Savings account is the place you deposit your salary as well as just about all other payments received to you. The bank will pay you interest based on the quantity of money you keep in your savings account. Although the interest rate is typically not very high, the longer you keep your savings in the account, the greater the returns you’ll receive. If you’re considering creating a new bank account, you may compare the interest rates offered by various banks to see which one will offer you the highest returns as the interest rate differs from the types of banks available out there. One advantage of using a savings account is that you are able to withdraw and put the cash into use at any time.
Islamic savings account
Islamic current, savings, and fixed accounts perform the same tasks as their conventional equivalents, but they do differ in terms of the underlying moral values. These facilities are modified to comply with Shariah in Islamic banking. This indicates that rather than being driven by interest, the accounts will generate income for you. Your principal is guaranteed by the government hence investing in Islamic saving account will not make you lose money in the long run. Most banks follow principles like Wardiah, Mudharabah and Qard. It has its own meaning and significance towards the account and also the principle itself.