Complete Guide For Foreigner Opening Bank Account In Singapore

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May 09, 2023

Complete Guide For Foreigner Opening Bank Account In Singapore

The good news is that many of the major banks offer banking products which are suitable for foreigners. However, you'll usually need to go into a branch in person to provide your documentation and set up your account. Here's what you need to know about opening a bank account in Singapore, including some of the best options for international customers.

Singapore is a popular destination for foreigners looking to open a bank account due to its stable and secure financial environment. With a well-established banking system and a range of options to choose from, opening a bank account in Singapore as a foreigner can be a straightforward process. In this article, we will discuss the benefits of opening a bank account in Singapore, the requirements for doing so, the types of bank accounts available, a step-by-step guide to opening a bank account, and tips for managing it effectively.

How Do Foreigners Open A Bank Account in Singapore?

The process of opening a bank account in Singapore slightly varies from bank to bank depending on the bank procedures for international accounts. In most cases, you can apply for an account, but you'll still need to visit a physical branch to complete the application in person with necessary documents.

You may need to get the right documentation together before visiting a physical branch in order to set up an online banking account. Check out the fees and restrictions of the different accounts available, and make sure you know what you're looking for when choosing one. Also keep in mind that some accounts targeted towards foreigners require a large initial deposit. Let's get a run into more details.

Requirements for Foreigners Opening a Bank Account in Singapore

Foreigners who wish to open a bank account in Singapore must be at least 18 years old and hold a valid passport and employment pass, employment permit, or student pass. Some banks may also require proof of address in Singapore, such as a utility bill or tenancy agreement.

Required Documents for Account Opening: To open a bank account in Singapore, foreigners must provide the following documents:

Valid passport

Employment pass, work permit, or student pass

Proof of address in Singapore (if required)

For certain accounts, you must provide a letter of recommendation or introduction.

Additional Requirements for Specific Bank Accounts:

Some banks may have additional requirements for specific types of bank accounts. For example, to open an investment account, you may need to provide proof of income or investment experience.

It is wise to double-check the specifics of the required documents before visiting a branch in person. For instance, you might be required to provide a passport with at least six months of remaining validity, and government-issued documentation proving your residence address might only be accepted if you're from a FATF member nation. Meaning you will still get SGD bank account details far from Singapore itself with proof of ID and address from your home country.

Types of Bank Accounts for Foreigners in Singapore

Savings Accounts: Savings accounts are a popular choice for foreigners looking to open a bank account in Singapore. They typically offer a higher interest rate than checking accounts, making them an attractive option for those looking to save money.

Checking Accounts: Checking accounts are designed for everyday banking needs, such as depositing and withdrawing money, paying bills, and making purchases with a debit card.

Multi-currency Accounts: Multi-currency accounts are ideal for foreigners who frequently travel or conduct business in different countries. They allow you to hold multiple currencies in a single account, making it easier to manage your finances across different countries.

Investment Accounts: Investment accounts are designed for those looking to invest their money in stocks, bonds, or other investment vehicles. They typically require a higher minimum balance than other types of accounts and may have additional requirements, such as proof of income or investment experience.

Step-by-Step Guide to Opening a Bank Account in Singapore

Now that you have familiarized yourself with the requirements and types of bank accounts available for foreigners in Singapore, here is a step-by-step guide on how to open a bank account in Singapore:

1. Preparing necessary documents: Ensure that you have all the necessary documents ready, including your passport, proof of residence, employment pass or student pass, and any other additional documents required by the bank.

To open a bank account as a foreigner in Singapore you'll need:

Proof of Identity (Passport or ID card)

Proof of Address (Utility bills, etc.)

Employment Visa, S Pass, or Student Visa

In addition to these documents, some banks may require the following:

Proof of residence (in Singapore or abroad);

A secondary government-issued ID in addition to your passport;

A referral letter (from a client or a former bank.)

2. Choosing a bank and type of account: Research the various banks and types of accounts available and select the one that best suits your needs. Consider factors such as minimum balance requirements, fees and charges, interest rates, and other features.

3. Submitting the application and opening the account: Once you have decided on the bank and type of account, fill out the application form and submit it to the bank along with the required documents. You can typically do this online or in person at a bank branch.

4. Activating the account and accessing banking services: Once your application has been approved, you will receive your bank account details and can start using your account. You may need to activate your account and set up online banking services to access additional features and services.

It is worth noting that the process for opening a bank account in Singapore can vary slightly depending on the bank and type of account. Some banks may require additional steps or documentation, so be sure to check with the bank for specific requirements.

Most banks will require customers to be physically present in Singapore for any account opening as verification and sighting of documents are needed.

Tips for Managing a Bank Account in Singapore

Once you have opened your bank account in Singapore, it is important to manage it properly to ensure that you are making the most of your account and avoiding unnecessary fees and charges. Here are some tips for managing your bank account in Singapore:

Maintaining minimum balance requirements: Many banks in Singapore require a minimum balance to be maintained in the account to avoid fees or to qualify for certain benefits. Be sure to check the minimum balance requirements for your account and make sure to maintain the required balance to avoid fees.

Avoiding unnecessary fees and charges: Familiarize yourself with the fees and monthly charges associated with your account and take steps to avoid them where possible. For example, some banks may charge fees for ATM withdrawals or overseas transactions, so consider using a multi-currency account or other options to minimize fees.

Understanding foreign exchange rates and international charges: If you frequently make overseas transactions or use your account for foreign currency transactions, be sure to understand the foreign exchange rates and charges associated with your account. Some banks offer better rates and lower charges than others, so do your research to find the best options.

Protecting personal and financial information: Be sure to take steps to protect your personal and financial information when using your bank account in Singapore. This includes using strong passwords, avoiding sharing your account information with others, and monitoring your account activity regularly for any suspicious activity.

For retail banking services, Singaporean banks levy a unique set of fees. While banks in Singapore do not normally impose monthly service fees, they do levy a monthly fee if your average monthly bank account balance falls below a specific level (usually between S$1,000.00 and S$5,000.00). This "fall below fee," as it's known, may also be rather significant, sometimes as much as S$7.50 for each month the amount is below the threshold. Furthermore, most Singapore bank accounts need a minimum initial deposit. This sum ranges between S$500.00 and S$5,000.00 based on the bank and account type.

Conclusion

Opening a bank account in Singapore as a foreigner can be a straightforward process, provided that you meet the eligibility criteria and have the necessary documents ready. By selecting the right bank and type of account, and managing your account properly, you can make the most of your account and avoid unnecessary fees and charges.

When choosing a bank and account type, be sure to consider factors such as minimum deposit as balance requirements, fees and charges, interest rates, and other features to select the option that best suits your needs. By following the steps outlined in this guide, and the tips for managing your account, you can enjoy the benefits of having a bank account in Singapore as a foreigner.

Read also: The History of Banking in Singapore

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