This post is also available in: Indonesia
Keeping money in your bank is one way you can keep your money safe. Before deciding to open an account, then you should ensure your financial savings needs. There are three types of deposits, namely: current account, savings, and deposits. Here’s the description:
Current Account is one of the banking products in the form of deposits from individual customers and business entities in Rupiah or foreign currencies whose withdrawals can be made at any time during business hours using cheque and bilyet giro warrants.
According to Banking Law No. 10 of 1998, Giro is:
deposits whose withdrawals can be made at any time by using cheques, bilyet giros, other payment order suggestions or by way of book-keeping. The sense that can be withdrawn at any time is that the money that has been deposited in the current account is withdrawn many times a day as long as the funds are still sufficient, in addition to having to qualify from the bank in question. Withdrawals can be cash or non-cash withdrawals.
In order to obtain the use of banking current account facilities, it is necessary to open a current account by the customer. In this case all customers, both Indonesian citizens and
foreign countries or other legitimate business entities and institutions under applicable law.
By becoming a Giro customer, you get the convenience of doing financial transactions, such as:
1. Make payment using Cheque.
Cheques are securities or means of payment transactions issued by the bank as
replacement of cash. Cheques are issued by the bank if you have a Current Account.
A cheque is an unconditional pay warrant from the customer to the bank that maintains the customer’s checking account, to pay some money to the ang mentioned in it or to the cheque holder.
Legal requirements and the use of cheques as a means of payment:
- There is the word “CHECK”
- Must contain an unconditional order to pay a certain amount of money
- Name of the bank that must pay (interested)
- Welcome date and the theme of the cheque issued
- Signature puller.
Other terms that can be set by the bank, among others:
- Available funds
- There’s enough stamp duty
- If there are scribbles should be in the bag of the cheque giver
- The amount of money written on numbers and letters must be the same
- Shows check expiration (70 days)
- ttd and the company stamp should be the same as the example (specimen0
- Not blocked by the authorities
- Tracking check is back
- Endorsment perfect check
- Account has not been closed
Cheque On Behalf (Order Cheque)
Is a Cheque that lists the name of the recipient and the bank will make the payment
name on the Cheque. Payment is made as soon as the date stated on the Cheque.
It is a Cheque that does not include the name of the recipient and the bank will make payment to whoever brought the Cheque. Payment is made as soon as the date stated on the Cheque.
Is a Check On Behalf of and/or Check On The Show that is stamped crossed at the top left end of the warrant or can also be stamped crossed along the check from the lower left end to the top right end. Cross checks cannot be cashed in cash, but can only be entered into the cheque recipient’s account.
check that is dated back from the current date. Example: today’s date is January 06, 2002 but it says dated January 10, 2002
checks whose funds are not available and banks do not provide overdraft facilities.
2. Make payments using Bilyet Giro.
Bilyet Giro (BG) is a different payment method to Cheque, where the recipient of the fund cannot disburse in cash, but must go through the book transfer to the account in question. Bilyet Giro will work the same as Cross Check.
BG is a pay warrant from a bank customer who maintains the customer’s current account to transfer some money from the account in question to the named beneficiary at the same bank or another.
Basically the valid condition of a BG is the same as CEK. And usually BG is valid 70 days from the date of withdrawal.
3. Other tools.
A warrant to the bank made in writing on the paper signed by the account holder or its attorney. (clearing)
According to Banking Law No. 10 of 1998, Savings is: Deposits whose withdrawals can be made according to certain agreed terms, but cannot be withdrawn by cheque or BG or other similarized tools.
Savings is a deposit product in banks whose deposits and withdrawals can be made at any time. Almost everyone feels obliged to have savings in the Bank. Not only in one bank, but also in two or three banks at once. Why would that be? The answer is because currently savings is not only used as a means of saving money only, but also coupled with other facilities that have actually been somewhat out of the intention of saving itself. For example, such as debit facilities, ATM facilities, transfers, and so on.
So if you look at it, a person’s goal of saving in a bank can be divided into two. First, because you want to actually save to be able to raise a certain amount of funds in the future. Examples such as saving to be able to buy certain needs. Second, just want to make savings as a shelter account, and not to actually save. Examples include accounts whose money is used to pay for monthly shopping. Well, here the facilities in the form of ATM Card and new Debit Card are actually used.
The initial deposit is the minimum amount that must be deposited as a condition of opening the savings account. The minimum balance is the minimum amount that should be left on your savings account. The initial deposit and minimum balance on the savings account are usually the same, for example if the initial deposit is IDR 25,000 then the minimum balance is also IDR 25,000. But the composition between the two may not be the same depending on the regulations at the bank. So is the initial deposit amount and the minimum balance requested.
Check again what are the minimum balance conditions in your savings account, does your bank allow savings customers to make withdrawals until the balance amount is below the minimum and what are the fines imposed if the balance reaches below the minimum? It is recommended to choose a savings account that requires the least minimum balance so that you can make more freedom to withdraw from your savings
Savings interest is given by banks so that the funds stored in the savings can grow, so that customers are more diligent in saving. Savings interest is usually calculated at the end of each month from the average daily balance of the month. Savings interest can be given at a single rate. That is, no matter how much money you have in your interest savings remain the same. It can also be given in storied. This means that on different balance amounts, the interest given is not the same. Usually, the more balances that settle the given interest the higher.
As a reciprocity for the services and facilities provided, almost all banks charge their customers an administration fee that is directly deducted from their savings each month. But there are also banks that do not charge administrative fees on savings accounts.
Read More : Hard to Save? Do The Following 4 Ways
The savings book is used as a recording medium for your transactions. Savings books usually also have to be carried when making cash withdrawals at the checkout. There is also a bank that replaces the savings book with a current account that is sent to your address each month. The report says when and for anything and how much money is coming out of your account.
According to Banking Law No. 10 of 1998, deposits are: deposits whose withdrawals can only be made at any given time based on the customer’s agreement with the bank.
Types of Deposits
1. Term deposits – deposits issued within a certain period of time, usually 1, 3, 6, 12 to 24 months. This deposit is in name and is non-transferable.
2. Certificate of Deposit – deposits issued within a certain period of time, usually 2, 3, 6, 12, and 24 months. These deposits are in the form of certificates and can be traded or transferred to other parties.
3. Deposits on call – time deposits with a minimum time of 7 days and a minimum of 30 days. Published on behalf of and usually a large amount, thus the bunya given is also in accordance with the agreement of the customer and the bank.
Deposits are deposit products in banks whose deposits and withdrawals can only be made at certain times. For example, if you put Rp 1 million in a deposit that is 3 months old, then the idr 1 million money can only be taken after 3 months have passed. Of course, you are also promised certain interest that you can enjoy when the deposit is due.
Deposit interest is usually higher than savings interest. This is because your money will be “locked” for a certain period of time so banks feel the need to promise higher interest rates than interest rates on savings accounts whose money you can withdraw at any time. This is usually the main attraction of deposits.
Unlike savings that can be opened with a small initial deposit. The minimum deposit for deposit placement is greater, the amount at each bank varies, but currently the minimum is IDR 500,000.
Another advantage of deposits is that there is no monthly administration fee, due to the lack of transactions through deposit accounts. Nevertheless, the deduction remains that the amount of deposit tax is taken into account from the interest on the deposit you get.
Time Deposit Difference VS Deposit Certificate
Interest on the certificate of deposit is taken into account and paid in advance, while the deposit is paid at maturity
Certificate of deposit is transferable because it is issued on behalf of the (issuer) not on behalf of a person. So this deposit certificate can be traded to other parties. And anyone holding a certificate of such deposit is entitled to withdraw it at maturity.
Certificate deposits cannot be automatically renewed (auto rollover) such as term deposits. So when the deposit certificate is due you must immediately disburse it or confirm it to the bank to extend the term.
Because it is issued on a show and not on behalf of, the bank does not accept a claim if you lose the certificate of the deposit.