Banking products are now starting to be recognized and used by the wider community, one of which is banking deposit products. You may have often heard of savings or deposits as a deposit product at a bank. But did you know there are other savings products in the form of a Current Account?
Just like savings and deposits, demand deposits also have various advantages as banking deposit products. For more details, let's discuss current accounts here.
What is Current Accounts?
Current accounts are banking products in the form of deposits from individual customers or business entities. Current accounts can be made in Rupiah or foreign currencies. As a deposit product, funds stored in demand deposits can be withdrawn anytime. However, what distinguishes current accounts and savings accounts is that money withdrawals from current accounts can only be made using a cheque or bilyet giro during the bank's operating hours.
Cheque or bilyet giro are not only for withdrawals but can also be used to make payments, book transfers, or money transfers. The current account slip is given by the payer (payer) to the bank, then the bank will send the funds to the recipient's bank account. People who use giro are called Giran.
Giro Instruments
As previously explained, there are two instruments used for current account transactions, namely cheque and billet giro.
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Cheque Letter
A cheque letter is a letter containing an unconditional order from a bank customer so that the bank pays the amount of money stated in the letter to the person or person who brought the letter.
There are two types of cheques used for current account transactions.
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Bearer Cheque
Bearer cheques are cheques that do not include the name of the beneficiary, and the bank will make payments to anyone who brings the Cheque. Payment is made at the earliest according to the date stated on the Cheque.
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Cross Cheque
A cross-cheque is a cheque on behalf of and/or a cheque on performance that is marked with a crossed line at the top left corner of the letter or can also be marked with a crossed line along the length of the Cheque from the bottom left to the top right corner. Cross cheques cannot be cashed in cash but can only be entered into the cheque recipient's account.
Bilyet Giro
Bilyet giro is securities or transaction tools issued by banks as a substitute for cash and can be disbursed in cash through book transfer to the account concerned according to the date stated in the giro slip.
Current Account Types
Here are two types of current accounts you can study before opening a checking account at a bank.
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Individual Current Account
This type of giro is held in the name of an individual or a business with the owner's name, such as grocery stores, workshops, restaurants, and other businesses that use the owner's name.
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Corporate Current Account
A company current account is a type of current account owned by an institution or agency. For example, community organizations, business entities such as PT, CV, foundations, cooperatives, government agencies, and other institutions can make current accounts on behalf of agencies, institutions, or companies.
Benefits and Advantages of Using Giro
Like other savings products, you can understand some of the benefits and advantages of using this current account before deciding which savings product you want.
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It can be used at any time
Like savings, current accounts can also be used at any time using a bilyet, such as for buying and selling transactions. The seller can use the bilyet from the buyer and process it at the bank concerned.
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Transactions are carried out safely
Transactions using current accounts are carried out safely because banks process the bilyet very strictly, paying attention to unique bilyet designs, unique bilyet numbers, and filling procedures.
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Improve business reputation
The third benefit and advantage of current accounts, which are bona fide and can improve your business reputation because banks are selective in granting permission to customers to have current accounts.
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The yield is in the form of demand deposits
Like savings, you will also get returns in the form of current account services and monthly reports in the form of a current account sent to a certain address.
That's a discussion about current accounts that you can understand before opening a current account at a bank. You can also open a current account at Bank MAS by coming directly to the nearest branch office in your city.
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