In banking terminology, the term Current Account refers to a type of deposit account made with a financial institution that permits the withdrawal of funds and allows checks to be written against the balance. While country has their own account name conventions, such as Malaysia has these named accounts, in the United States for example a current account may also be known as a checking account.
For example, a current account will often be used by individuals, businesses and financial institutions around the world as a means of keeping liquid funds available for making necessary payments and withdrawals. In the retail market, a Current Account is a relatively safe investment when opened with an insured and regulated financial institution like a bank, building society, savings and loan corporation, or credit union. Most current accounts do not pay interest on the funds deposited in them since they can be withdrawn at any time without advance notice or penalty.