I finally set up a bank account in Malaysia today after months of living off mommy ATM and daddy card. In my defense, I did transfer some money home when I left the States, so it wasn't exactly like I was sponging off them. Although I think the amountI transferred home was exactly the amount that got put into my new account... Oh well, best not to investigate too throroughly...
I did, however, get a good look at the Malaysian banking sector and I didn't like what I saw. Everything just seems so backward and twenty years behind. Of course you could argue that it's this very backwardness that's keeping us relatively unscathed in today's financial crisis - no loans to people who can't afford to pay it back and all that. But I'm talking about the deposit side of things.
When you open a savings or current account in a bank, you're lending the bank your money, and you should get paid for that loan in the form of an interest rate. In Malaysia, they do give you some compensation for your loan, but they may as well not bother. For a regular savings account at this particular bank that I chose, you don't get anything if you have less than RM3,000 in the account. Once you break the 3k mark, you get a paltry 0.2% in interest. It's a graduated rate, of course, but at the current inflation rate, I may as well spend all my money on canned food and give some serious thought to building an industrial-sized freezer room for all my groceries for the next ten years.
Not only do they not compensate you adequately, they also try to milk you for every penny that you own. For starters, they actually expect you to pay to own an ATM card. And it's a yearly fee too! Coming back from the US, where they give you a debit card to go with your order of chai latte, this concept was a little hard to stomach. They also charge you a fee for current accounts. And of course, credit cards, although some banks are wisening up and offering "free for life" credit cards, but only if you spend more than a certain amount per annum. And don't get me started on credit cards. I know the US is paying the price for easy credit, but seriously, can't I get a credit card without an income tax form? Not even if I show you an offer letter for my next job? And not even if I have a fixed deposit account with your bank? I'm not asking for a high limit. Not to start with anyway. Sigh.
As for internet banking, as an account holder at this particular bank, you do not automatically have online access to your account. Instead, you have to either register for the service through the ATM or submit a paper form to the branch at which you opened your account. Of course, being too Americanised, I didn't think to ask about it at the bank, so I'll have to go back and set it up. What a hassle. I haven't, obviously, had a chance to use this online banking system yet, but I don't have high hopes for it.
The only nice thing I have to say about the banking system here is that you can have several "tranches" in your fixed deposit account so that if you should ever need to withdraw some money from the account, you don't have to incur the penalty for early withdrawal for the full amount of the deposit. But then again, interest rates for a fixed deposit account here start from 3% so there really isn't much to lose.
Where are the high interest online savings accounts? No-fee banking? Really cool personalised checkbooks with a large variety of backgrounds to choose from? Debit cards? Credit cards? Sigh, Malaysia still has a lot to learn in the banking department.