A current account is a type of banking product that allows holders to make deposits and withdrawals. Lets take a look at the major features and benefits of current accounts in Indonesia.
Flexibility in Payments
One of the biggest conveniences conferred by a Current Account is the ability to make payments through multiple modes. In addition to cash withdrawals and transfers between accounts, a current account will also give you the flexibility to make payments via checks and Giro.
All current accounts in Indonesia are covered by the deposit insurance scheme of the Indonesia Deposit Insurance Corporation (IDIC). IDIC also insures Islamic banking products including Wadiah-based current accounts. The maximum amount of deposit insured by IDIC is IDR 2 billion per depositor per bank, that includes the depositor’s rights to principal and interest/return.
Types of Current Account
There are various types of Current Account available in addition to current accounts for individuals. These include Business Current Account, Islamic Current Account and Multi-Currency Current Account.
This is a facility offered to current account customers by some banks. To put it simply, an overdraft is a credit facility given to current account holders which allows them to withdraw more than what is in their account. The Citbank Current Account, for example, offers an overdraft facility to its current account holders.
Interest, Charges and Terms and Conditions
Some current accounts offer interest; this could vary from bank to ban, so shop around. Interest paying current accounts could come with higher balance requirements, failure to maintain which could result in charges being levied.
And, while you are at it, please check out the charges and penalties and the situations when they become applicable along with the terms and conditions accompanying the account. Minimum balance, check book and GIRO / transfer charges, cap on withdrawals, availability of ATM / Debit card are some of the items you should pay particular attention to.
Eligibility and Documentary Requirements
Current accounts are generally offered to customers who are 18 years or older.
Documentary Requirements – Individuals
▪ Identification proof – The KTP (Kartu Tanda Penduduk) Card
▪ Tax Identification Number – The NPWP (Nomor Pokok Wajib Pajak)
Foreigners may have to submit the following additional documents:
▪ Copy of Passport
▪ Temporary stay or permanent stay visa (KITAS or KITAP)
Documentary Requirements – Businesses
Businesses may be required to submit business registration documents and administration documents including:
▪ Business License (in the form of SIUP or other forms of license from the government authority related to the business of the company)
▪ Copy of Company Registration Certificate – TDP
▪ Copy of Tax ID – NPWP
▪ Copy of Deed of Establishment (AKTA)
▪ Copy of ID card of all board of directors, shareholders, and authorized signatories