- Banks in Singapore - Do They Reimburse Losses from Scams and Fraud?
- Singapore Businesses’ Guide to Hiring Interns + Grants For Interns [2024 Updated]
- Understand the Basics of Credits and How to Avoid Getting into Bad Debt
- Comprehensive Guide to Data Protection Officer - What SME Owners Need to Know [Updated]
- How to avoid being a victim of credit frauds/scams?
- Why do employers conduct background screening?
- Corporate Compliance in Singapore: Guide for SMEs and Businesses
- Should I Switch My Corporate Secretary Partner?
- Comprehensive Guide to Understanding Moneylenders Credit Bureau (MLCB) Loan Information Report
- Pawn Shop Loans: Everything You Need to Know in Singapore
[2023 Edition] The Best Business Banking Accounts in Singapore
Disclaimer: The insights shared in this article are the result of a collaboration between OCBC and Smart-Towkay.com. It's essential to note that all views expressed in the article are the independent opinion of Smart-Towkay.com, which is based on our thorough research and industry expertise.
Smart-Towkay.com cannot be held responsible for any financial
losses that may occur as a result of any transactions, and we strongly encourage
readers to conduct their own research before making any financial decisions.
Finding the right business banking account for your needs can be
daunting. With neobanks and fintechs entering the Singapore market, there are
now more options than ever before to choose from.
Nevertheless, when starting a business, it is paramount that you open a
business banking account due to many beneficial reasons:
Importance Of Having A
Business Bank Account
- Legal and Tax Requirements: In Singapore, having
a distinct account for financial transactions is mandatory for all
business entities, including sole proprietorships. This method of
organisation makes it simpler to keep track of expenses, revenue and taxes
- providing you with more time to focus on growing your business.
- Professionalism: Having a business
banking account also goes a long way in improving the company’s image. Customers
and clients perceive companies that use business bank accounts as more
professional and credible than those that don’t.
- Bookkeeping
and Record Keeping: With a business account, you can easily manage and
monitor your organisation's financial transactions. This streamlines the
process of preparing fiscal statements and reports as well as filing taxes
- all while saving time.
- Credit
and Financing: Having a business account can also improve your chances
of getting a loan or a line of credit. Banks and other lenders often look
at a company's financial history especially cash flow analysis using your
business account when considering loan applications.
- Separating personal and business finances: By keeping your
personal and business finances separate, it becomes easier to manage your
business finances, track expenses and revenue, and to identify any
financial issues that arise. It also makes it easier to file taxes and
maintain accurate financial records.
Important Things to Look
Out For When Choosing a Bank Account And Its Providers
But with so many banks in Singapore, all offering various business
banking options, how does one know which is the most suitable business bank
account to have?
In evaluating a business bank account, the most important things to look
out for are:
● Account fees: it's important to look into the monthly fees that the bank charges for maintaining your business account. Some banks may charge a flat monthly fee while others might require you to keep up a specific minimum balance instead of charging a monthly fee.
●
Minimum deposit and
balance:
Before you open a business account with your chosen bank, make sure that the
minimum deposit or balance they require is within your financial means and something
you are comfortable keeping in your account. This amount could range from just
a couple hundred dollars to thousands of dollars. Ensure that it's an amount
you can afford.
●
Usability and ease of
access:
When selecting a banking institution for your business, make sure to assess how
convenient it will be to access their services. This includes things like
online and mobile banking, as well as ATM cash withdrawal capabilities. It's
essential that the bank you choose has an intuitive platform with multiple ways
of accessing your account easily.
●
Limits on transfers and
foreign currency conversion fees: If you have an international business, it is
essential for you to look into the restrictions and charges related to
transferring funds abroad. Some banks may confine the quantity that can be sent
or impose higher fees on foreign currency exchanges. If your company transacts
overseas often, it's worth doing some research to find a bank with favourable
limits and competitive rates for international transfers.
●
Customer support: When selecting a
financial institution, it is critical to ensure you have access to robust
customer support. This includes having a friendly and knowledgeable team that
can answer your queries and resolve any issues quickly and efficiently -
especially if you are starting out with little experience.
●
Bank's Reputation: It is essential to conduct research on the
bank's background, customer reviews, and ratings before making your decision.
Additionally, you should take into account the bank's financial stability and
regulatory compliance as these will provide insight into its reliability. Doing
this due diligence can give you assurance that the bank has an admirable
reputation for quality service.
●
Deposit
Insurance Scheme (DIS)- If you're a business owner, it's
critical to ensure the safety of your company funds. Check if your bank account
providers are Singapore Deposit Insurance Corporation (SDIC) insured. All full banks and finance companies in
Singapore are members of the Deposit Insurance (DI)Scheme, and provide deposit insurance up to S$75,000.
●
Integration
with accounting software- Some banks offer integration with
popular accounting software, such as QuickBooks or Xero, which can save you
time and effort in managing your finances.
With that in mind, here are some of the best bank accounts for companies
in Singapore:
Fees and charges |
OCBC
Business Growth Account |
Initial deposit |
S$1,000 |
Fall below fee |
S$15 per month (if average balance
falls below S$1,000) |
GIRO and FAST transaction |
Free FAST, GIRO and Payroll transactions |
Account fees |
S$10 per month (waived for the
first 2 months) |
Perks |
- Exclusive Welcome Offer until 30 June - Free Access to OneCollect first 3 months, a digital
collection tool including Paynow and SGQR with instant notifications - Up to 1% cashback with OCBC Business Debit Card - Account fee waived for 2 months (worth S$20) - Enjoy OCBC Multi-Currency Business Account for free (worth S$120 per year) if you also have an OCBC SGD Business Account opened |
|
Startups and Young Businesses with limited cashflow who do not want to
pay a high monthly fee or make large initial deposits and account maintenance
amount |
Please note that the above
table is based on the information provided and is not exhaustive, and subject
to change as per the bank's discretion. It's always a good idea to check with
the bank for the most current and accurate information.
With only S$1,000 minimum deposit and balance requirement, the OCBC Business Growth Account offers an attractive set-up at minimum cost.
Accounts can be opened online, with applicants able to receive their account
numbers almost instantly*.
In addition, OCBC offers free unlimited FAST and GIRO transactions.
A multi-currency account can also be set up together with the Business Growth
Account without additional cost. Buying or selling overseas? Enjoy
effortless transfers in 13 major currencies such as US Dollars and Euros, to
improve efficiency and operations. Get a free
Multi-Currency Account.
Overall, as the name implies the OCBC Business Growth Account is a great option for Startups and Young
Businesses.
*Instant account opening is only
applicable for Singapore incorporated companies opening its first OCBC Business
Banking Account owned by one or two Singaporeans and PRs only, and will be
subjected to approval by OCBC Bank. For others, you can still apply online and
OCBC will follow up with you on your application.
CIMB SME Account
Fees and charges |
CIMB
SME Account |
Initial deposit |
N.A. |
Fall below fee |
N.A. |
|
Free FAST, GIRO and Payroll transactions $15 per over the counter (OTC) transaction |
|
S$28 per month $25/ cheque book |
|
Preferential Remittance Rates- S$15 flat fee First Free 3 tokens free Free eAlerts |
|
Startups and Young Businesses with limited cashflow who do not want to
make large initial deposits and account maintenance amount |
Please note that the above
table is based on the information provided and is not exhaustive, and subject
to change as per the bank's discretion. It's always a good idea to check with
the bank for the most current and accurate information.
For the busy SME business owner, the CIMB SME account is an
ideal solution. Not only do you not have to worry about fall-below fees or
minimum balance requirements, but you also get free FAST, GIRO and payroll
transactions.
If you're a more established start-up aiming to find an interest bearing
account with more accessible minimum deposits, the Business Plus Current
Account-i is perfect for you. This account begins at S$3,000 (minimum deposit
and minimum balance) and includes a fall below fee of S$20.
One of the key features is that it offers an interest-bearing rate of 0.10 percent if the account balance is between S$30,000 to S$1,000,000, and 0.30 percent for balances between S$1,000,001 and S$2,000,000.
DBS Business Multi-Currency Account - Starter Bundle
Fees and charges |
DBS
Business Digital Account |
Initial deposit |
N.A. |
Fall below fee |
N.A. |
|
Free FAST, GIRO and Payroll transactions $40 per over the counter (OTC) transaction |
|
S$10 per month S$25 per cheque book and $3 for every cheque issued S$30 flat fee for outward TT eAlerts: S$8 per month for account information and trade finance
reports and alerts |
|
Competitive FX rates |
|
Startups and Young Businesses with limited cashflow who do not want to
make large initial deposits and account maintenance amount |
|
Note that only < 3 years incorporated company can apply. For companies that open DBS Multi-Currency Account- Starter Bundle do
not have to switch to another account after it reaches it's 4 years mark. |
Please note that the above
table is based on the information provided and is not exhaustive, and subject
to change as per the bank's discretion. It's always a good idea to check with
the bank for the most current and accurate information.
The DBS Business Digital Account in Singapore is a very popular business
bank account. For an account transacting only in Singapore dollars, it only
requires a low initial deposit of S$1,000 and no minimum balance, which means
there are no fall-below fees.
The Multi-Currency Account allows for transactions in Singapore dollars
as well as 12 other foreign currencies, including Euros, British pounds,
Australian dollars, and of course, US dollars.
DBS charges an affordable S$10 a month to maintain the Business
Multi-Current Account. It also charges a minimum of S$30 for outward TT and S$8
for eAlerts which is kind of costly given other banks providing this alert for
free.
UOB eBusiness Account
Fees and charges |
UOB
eBusiness Account |
Initial deposit |
S$1,000 |
Fall below fee |
$15/mth fall-below fee if average
balance falls below $5,000 (first 12 months waived for new accounts) |
|
GIRO transaction fee: $0.20 rebate for up to 60 GIRO payments & Collections per month via UOB Infinity FAST transaction fee: $0.50 rebate per transaction (receive rebate for
first 60 outgoing FAST/PayNow FAST transactions per month via UOB Infinity) $20 per over the counter (OTC) transaction |
|
S$35 per year 30 free cheques, thereafter S$0.75 for every cheque issued S$30 flat fee for outward TT |
|
Free eAlerts |
|
Startups and Young Businesses with limited cashflow who do not want to
make large initial deposits and account maintenance amount |
To open an UOB’s eBusiness Current Account, an initial deposit of S$1,000
is required. Unlike DBS and OCBC, setting up a business bank account in
Singapore with UOB requires a minimum daily balance of S$5,000, with a S$15
fall-below fee.
On the plus side, UOB only charges an annual fee of S$35. Up to 60
outgoing FAST and PayNow FAST transactions per month will be free through UOB
Infinity, their digital business banking platform which is more than enough for
most SMEs monthly transaction needs.
Fees and charges |
Maybank
Flexibiz Account |
Initial deposit |
S$1,000 |
Fall below fee |
$10/mth fall-below fee if average
balance falls below $1,000 |
|
Free FAST, GIRO and Payroll transactions $40 per over the counter (OTC) transaction |
|
S$0 per month S$0.75 per cheque (if average daily balance is above $30,000 for the
month, total cheque charges will be credited back into your account |
|
Complimentary all-in-one business debit card For First S$50,000, enjoy attractive interest rates of up to 0.018% p.a. For Next S$450,000, enjoy attractive interest rates of up to 0.028% p.a. |
|
Startups and Young Businesses with limited cashflow who do not want to
make large initial deposits and account maintenance amount |
Another popular option for companies prioritising the minimisation of
cost and would like an interest bearing account with low account maintenance
amount, the Maybank Flexibiz Account requires a minimum initial deposit/monthly
maintenance amount of S1,000 and S$10/mth fall below fee. Most noticeably, it
also does not charge any monthly or annual maintenance fees.
The only potential bad news is for companies who deal with many foreign
transactions; at 0.91% Maybank charges the highest Forex mark-up rate – almost
twice as high as the other banks listed here.
Maybank provides an attractive, economical solution for local businesses
dealing solely locally. Though its online banking interface could use some
improvements and doesn’t allow customers to download their bank statements
directly, the cost savings may make it a worthwhile consideration.
So, Which Bank Account
Should I Go For?
There's no one size fits all bank account as it depends on the specific
needs and requirements of your business.
When evaluating business bank accounts, it's important to consider
factors such as monthly fees, minimum deposit and balance, usability, and ease
of access, limits on transfers and foreign currency conversion fees, customer
support networks, and the bank's reputation.
Start-Ups and companies with a tight budget will be delighted to know
that OCBC's Business Growth Account and DBS' Business Multi-Currency Account - Starter Bundle require minimal deposits yet offer impeccable
customer service support as well as an easy banking online banking interface.
Apply online instantly
If you are looking for an interest-bearing account with a low requirement of the initial deposit and monthly maintenance amount, consider the Maybank Flexibiz Account or CIMB SME Account, though be mindful of their limited branch presence. If your business regularly requires Over Counter service such as bulk cash deposits, keep in mind that the Maybank Flexibiz OTC fees may add up over time.
Read also: Unlock the Potential of Your Unpaid Invoices with OCBC Short-Term Invoice Financing
Read also: What You Need To Know Before Applying For A Business Term Loan
Read also: Guide to Start-Up Business Loans in Singapore 2023 Edition
-------------------------------------------------------------------------------------------------------
Got a Question?
WhatsApp Us, Our Friendly Team will get back to you asap :)
Share with us your thoughts by leaving a comment below!
Stay updated with the latest business news and help one another become Smarter Towkays. Subscribe to our Newsletter now!
Related
SME Matters: Why SMEs in Singapore Should Consider Having Multiple Business Bank Accounts
Feb 06, 2024