For many small and medium-sized enterprises (SMEs), cash kept in a business current account is simply viewed as working capital — money that needs to be readily available to pay salaries, suppliers, rent, utilities and other day-to-day expenses.
But there is a cost to leaving sizeable operational balances sitting idle.
This is where business owners may want to take a closer look at business current account promotional rates, particularly during periods when banks are offering higher returns to attract SME deposits.
Our comparison of selected promotional Business Current Account rates offered by major Malaysian banks in August shows that MBSB Bank currently stands out with a promotional profit rate of 3.00% per annum, subject to a minimum qualifying balance of RM50,001.
For SMEs with surplus operational cash, choosing an account that pays a competitive return could turn otherwise idle funds into a modest but useful additional source of income.
MBSB Bank: 3.00% p.a. on qualifying balances
Among the accounts reviewed, MBSB Bank offers the highest promotional rate at 3.00% per annum, with a minimum balance of RM50,001 to qualify.
MBSB Bank Business Banking – Business Current Account
The significance of the minimum balance is worth highlighting.
For example, an SME maintaining RM100,000 of eligible funds could potentially generate about RM3,000 a year at a 3.00% annual rate, before taking into account the applicable terms, conditions and any changes to the promotional rate.
That may not transform a company’s finances overnight, but RM3,000 could still contribute towards a utility bill, office expenses, staff-related costs or other recurring operating requirements.
At RM500,000, the potential annual return would rise to about RM15,000, while RM1 million could potentially generate RM30,000 a year at the same rate.
The key point is that the business is already holding the cash for operational purposes. The question is whether that money can work harder while remaining accessible under the account’s applicable terms.
Standard Chartered: attractive rate, but higher balance requirement
Standard Chartered comes in second in the comparison, offering a promotional rate of 2.58% per annum.
However, the qualifying minimum balance is substantially higher at RM500,000.
This makes the offering potentially more suitable for medium-sized businesses or companies that regularly maintain significant cash reserves.
At RM500,000, a 2.58% annual rate would translate to approximately RM12,900 in potential annual interest, subject to the product’s terms and conditions.
For smaller businesses whose cash balances fluctuate below RM500,000, however, the higher threshold could make the account less practical compared with an option requiring a lower qualifying balance.
AmBank: competitive option at 2.38%
AmBank offers a promotional rate of 2.38% per annum, with a minimum balance requirement of RM100,000.
At RM100,000, that represents potential annual interest of around RM2,380, assuming the balance qualifies throughout the relevant period.
The lower threshold compared with Standard Chartered could make this a more accessible alternative for SMEs that maintain six-figure operational balances.
Other options in the market
The comparison also includes Bank Muamalat, which offers a rate of 1.50% for its SME current account/SME savings offering, and Maybank, with a rate of 1.25% for its SME savings/current account offering, based on the promotional information reviewed.
While these rates are lower than the 3.00% offered by MBSB Bank, business owners should consider the complete package, including account requirements, transaction facilities, accessibility, fees and other banking services.
August comparison at a glance
| Bank | Promotional rate | Minimum balance |
| MBSB Bank | 3.00% p.a. | RM50,001 |
| Standard Chartered | 2.58% p.a. | RM500,000 |
| AmBank | 2.38% p.a. | RM100,000 |
| Bank Muamalat | 1.50% | Not specified |
| Maybank | 1.25% | Not specified |
Rates and qualifying requirements are subject to each bank’s prevailing promotional terms and conditions.
Keeping idle business cash in a lower-yield account could mean missing out on up to RM3,500 a year, based on this illustration:
Consider an SME that routinely maintains RM200,000 in its business account.
At 1.25%, the annual return would be approximately RM2,500.
At 1.50%, it would be RM3,000.
At 2.38%, it would be RM4,760.
At 2.58%, it would be RM5,160.
At 3.00%, the potential return rises to RM6,000 a year, which is an enormous gap between low interest current account.
The difference between earning 1.25% and 3.00% on RM200,000 is therefore approximately RM3,500 a year.
For a business owner, RM3,500 could pay for accounting software, utilities, office supplies, insurance, employee training or other operating expenses.
The larger the cash balance, the more meaningful the difference becomes.
Making working capital work harder
The broader lesson for SMEs is simple: cash sitting in a bank account is an asset, and businesses should consider whether that asset is being put to work efficiently.
With borrowing costs, wages, utilities and other operating expenses continuing to put pressure on businesses, even relatively small additional sources of income can help improve cash-flow management.
For SMEs that consistently maintain more than RM50,000 in their business accounts, MBSB Bank’s 3.00% promotional rate currently makes it particularly noteworthy in this comparison.
If the funds are already earmarked for business operations and can remain at the required balance, the additional interest or profit could provide a useful supplementary source of funds — potentially helping to pay for salaries, utilities, suppliers or other operating expenses rather than leaving that potential income on the table.
This article and the comparison presented are based on Business Today’s independent assessment of publicly available information at the time of publication.
