I HAVE a savings account with a bank in Ipoh. I recently received a notice from the bank informing me that my account is considered inactive.

According to the notice, effective February, a service fee of RM10 would be debited annually from all inactive savings accounts that is accounts which do not have any customer initiated transaction for 12 months.

What does it mean by customer initiated transactions? Most of us do transactions online, including paying bills and transferring funds, while cash and cheques are deposited through bank machines.

According to the bank manager, all these are not considered “customer initiated” transactions.

Only withdrawals over the counters or through ATMs are considered “customer initiated” transactions.

Such an interpretation of the term “customer initiated” transactions is arbitrary and works in the bank’s favour.

I hope Bank Negara Malaysia will give a precise definition of inactive savings accounts and explains to the general public what constitutes a customer initiated transaction.

I do not see any rational for banks to charge a service fee on inactive savings accounts. Since all banks need funds from the public’s savings, as can be seen from their advertisements, the inactive savings accounts could be considered as fixed deposits earning a low interest.

Besides this, savings accounts are already charged an annual service fee of RM8 for non-basic accounts. I hope Bank Negara Malaysia will step in to help alleviate the burden of more fees imposed by banks.

Source: The Sun – February 3, 2010