A first step for many new business owners, and even self-employed and freelancers, is to separate your business bank account from your personal savings account. This will make it easier for accounting and regulatory purposes over the long term.
Even for more established businesses, switching to the right business bank account can make a difference in your financial operations. There are business bank accounts that can value-add to your business growth and digital drive, facilitating customer payments, issuing e-invoices, monitoring cash flow and accessing business loans and financing.
Read Also: Complete Guide To SME Business Loans In Singapore
Here are 7 key factors businesses should consider when opening a business bank account in Singapore, and you can compare these between banks.
| 1 | Minimum Initial Deposit | How much initial deposit you need to open the business bank account |
| 2 | Minimum Monthly Balance (and Fall Below Fee) | How much cash balance you need to maintain each month to avoid getting charged a fall-below fee |
| 3 | Monthly Maintenance Fee | The fee that your bank charges you to keep your account up and running |
| 4 | Online Banking Features | Includes services like interbank transfers, ability to view your account transactions and history online, paying bills without checks, account alerts and reminders on your phone as well as paperless statements |
| 5 | Scalability | What type of business you are operating (B2B or B2C) and how many transactions your business processes within a month |
| 6 | Multicurrency Features | Whether the business bank account has features that allow you to change between different currencies |
| 7 | Cheque book (and charges) | Convenient ways for you to request for your bank to issue new cheque books |
Based on these main factors, which account for costs, flexibility, scalability, and complementary features such as multicurrency accounts, here are some of the SME business bank accounts in Singapore that you can consider.
#1 OCBC Business Growth Account
With a low minimum deposit of $1,000, the OCBC Business Growth Account offers an attractive low-cost set-up. You can open your business bank account instantly, and receive your bank account number, when you apply online with Singpass.
The account comes with access to OCBC Velocity, its Digital Business Banking platform, where you can manage your account(s), initiate payments and collections, manage your cash flow and create e-Invoices for free.
The OCBC Business Growth Account charges a $10 monthly fee. An additional OCBC Multi-Currency Business Account can also be set up together with your OCBC Business Growth Account. This enables you to make transactions in 13 foreign currencies including the US Dollar, Euro, Australian Dollar, Hong Kong Dollar and CNH (Chinese Yuan). Both accounts will be charged under the same account fee of $10 per month – as an exclusive promotion when you open the OCBC Business Growth Account.
With the OCBC Business Growth Account, you can also enjoy unlimited FAST, GIRO and PayNow transactions for free.
| Minimum Initial Deposit | $1,000 |
| Minimum Monthly Balance (and Fall Below Fee) | $15/mth fall-below fee if monthly average balance falls below $1,000 |
| Monthly Maintenance Fee | $10/mth (waived for first two months) |
| Online Banking Features | Internet and mobile banking with OCBC Velocity, digital tokens, eAlerts, Cashflow management tools, E-invoicing |
| Scalability | – Unlimited free FAST, GIRO & PayNow transactions – $20 per Over The Counter (OTC) transaction – Save on transaction fees for cross-border transfers with International Automated Clearing House (IACH) |
| Multicurrency Features | SGD only Open a separate OCBC Multi-Currency Business Account (13 currencies) without any further fees if you also have an OCBC Business Growth Account. |
| Cheque book options (and charges) | $25/ cheque book Cheque deposit fee of $0.75 per cheque, and cheque clearing fee of $0.75 per cheque |
| Others | Early closure fee: $50 for accounts closed within first 12 months Excess fee (incidental overdraft charges): Minimum $30 or Prime + 4.75% (whichever is higher) on excess amount eAlerts: $25 per month for either cash alerts or trade finance alerts; $35 per month for BOTH cash and trade finance alerts (first 3 months waived). An additional fee of $15 is charged for each additional account or authorised user. |
Apart from the business banking features, you also get up to 1% cash back when you spend on the free debit card linked to your account.
How To Open: Instant online account opening for Singapore-registered businesses. Applicants must be Singaporean or PR to apply for instant account opening. You can open your OCBC Business Growth Account online here.
Read Also: OCBC Business Bank Account: Why New Business Owners Should Consider It
#2 DBS Business Multi-Currency Account – Starter Bundle
If you already have a POSB or DBS account like many other Singaporeans, using the DBS Business Multi-Currency Account – Starter Bundle should be intuitive for you as a business owner.
Readying your business for global operations from day 1 is something every entrepreneur should think about in the current landscape. As its name suggests, this bank account provides both local and international payments and collections in a single account. You can transact in Singapore Dollars, and 12 other foreign currencies, including the Australian Dollar (AUD), Canadian Dollar (CAD), Chinese Yuan (CNH), Hong Kong Dollar (HKD), Japanese Yen (JPY) and US Dollar (USD).
The DBS Business Multi-Currency Account – Starter Bundle is only applicable for new businesses that are incorporated less than 3 years from the application date. Otherwise, you have to apply for the standard Business Multi-Currency Account – which comes with slightly more costs and hoops to jump through.
The main benefits of the DBS Business Multi-Currency Account – Starter Bundle is that you get unlimited free FAST and GIRO transactions (excluding Bulk Payments and Payroll – which are charged at $0.20 per transaction) if you sign up under the Starter Bundle. One cost that stands out for this account is that the cheque clearing fee is $3 per cheque – discouraging cheque usage.
| Minimum Initial Deposit | No Initial Deposit Required |
| Minimum Monthly Balance (and Fall Below Fee) | No Minimum Balance Required and No Fall Below Fee |
| Maintenance Fee | $10/ monthly account fee. |
| Online Banking Features | Internet and mobile banking, digital tokens, eAlerts |
| Scalability | – Unlimited free FAST & GIRO transactions via DBS IDEAL (only for Starter Bundle) (excludes bulk transactions and payroll – which are charged at $0.20 per transaction) – $40 per OTC transaction – $30 flat fee for outward TT – Doubles up as your multicurrency account |
| Multicurrency Features | Use the same account for both local and international (up to 12 other currencies) transfers |
| Cheque book options (and charges) | $25/ cheque book Cheque-clearing fee of $3 per cheque; cheque deposit fee of $0.75 per cheque |
| Others | Excess fee (incidental overdraft charges): Minimum $30 per month or Prime + 5.0% (whichever is higher) on overdrawn amount eReports: $8 per month for account information and trade finance reports and alerts |
How To Open: You can apply for the DBS Business Multi-Currency Account – Starter Bundle within several minutes. Have your company’s UEN details and all account users on-hand when you’re applying to reduce your application time and hassle. Companies that have been incorporated for more than 3 years can only apply for the standard DBS Business Multi-Currency Account, which has some differences from the Starter Bundle.
Read Also: What Is PayNow For Business And 4 Reasons Why Businesses Should Adopt It
#3 Maybank FlexiBiz Account
The Maybank FlexiBiz Account is another fuss-free business bank account that is inexpensive to maintain. The $1,000 minimum initial deposit is fairly affordable even for newer businesses. There is a low $10 fall-below fee if your monthly balance is under $1,000, but no monthly maintenance fee is charged, making this an affordable business bank account to have.
This bank account may be good for businesses in the early innings of growth. The Maybank FlexiBiz Account stands out in that it is one of the few business bank accounts to pay an interest on your balances, albeit a nominal one: 0.018% for first $50,000; 0.028% for next $450,000 and 0.038% for balances above $500,000.
| Minimum Initial Deposit | $1,000 |
| Minimum Monthly Balance (and Fall Below Fee) | $10/mth fall-below fee if average balance falls below $1,000 |
| Monthly Maintenance Fee | N.A. |
| Online Banking Features | Internet and mobile banking, digital tokens, eAlerts |
| Scalability | – Instant fund transfer via FAST or PayNow at $0.50 per transaction (with 100% rebate on up to 30 transactions each month); GIRO at $0.20 per transaction (with 100% rebate on up to 30 transactions each month) |
| Multicurrency Features | SGD only Open a separate Maybank Foreign Currency Current Account |
| Cheque book options (and charges) | – $0.75 per cheque issued; $0.75 cheque deposit (from 1 July 2024) |
| Others | Early closure fee: $50 for accounts closed within first 6 months |
How To Open: You can open your Maybank FlexiBiz Account online via MyInfo. You will need your signature image and Certified true copies of Memorandum & Articles/ By-Laws/ Constitution of your company or Certified true copies of LLP Partnership agreement.
#4 UOB eBusiness Account
While the UOB eBusiness Account has a minimum initial deposit of $1,000, you will incur a $15 fall-below fee if you do not maintain an average daily balance of $5,000 – which is waived in the year you open the account. It also charges a $35 annual account fee (or about $3 a month).
You can manage your finances on a single platform by using their UOB BizSmart Digital Solution which helps you with core processes such as invoicing, HR and accounting. With UOB BizSmart, you can import bank account feeds for automatic reconciliation and provide faster payment options to customers via PayNow QR or NETS PayCollect.
To facilitate cross-border transactions, UOB also has a team of FX specialists who will help you with foreign exchange services like FX Spot and FX Forward. You can lock in fixed FX rates when you remit funds from Singapore to Malaysia. You can also enjoy zero remittance charges for the Vietnamese Dong, Taiwan Dollar, Burmese Kyat and Korean Won.
| Minimum Initial Deposit | $1,000 |
| Minimum Monthly Balance (and Fall Below Fee) | $15/mth fall-below fee if average balance falls below $5,000 (waived for first 12 months) |
| Monthly Maintenance Fee | $35/yr (Appox. $3/mth) |
| Online Banking Features | Internet and mobile banking, digital tokens, eAlerts |
| Scalability | – 100% rebates for Bulk Payroll fees via the UOB SME app or online – Free 60 GIRO transactions submitted via UOB SME app or online; $0.20 thereafter – Free 60 FAST transactions submitted via UOB SME app or online; $0.50 per transaction thereafter – $20 per over the counter (OTC) transaction |
| Multicurrency Features | Dedicated support from UOB FX specialists |
| Cheque book options (and charges) | Cheque clearing charges: $0.75 per cheque |
| Others | Early closure fee: $50 for accounts closed within first 12 months eAlerts: Free email notifications on your account |
You can also earn up to 1.5% cash rebates on your spend via the UOB Business World Debit Card.
How To Open: Instant online account opening for Singapore registered businesses. Applicants must also be Singaporean or PR to apply for instant account opening. Open your UOB eBusiness Account online.
Read Also: Complete Guide To Singapore Corporate Taxes: Tax Rates, Tax Rebates And Tax Exemptions
#5 CIMB SME Account
Another option for SME business owners is the CIMB SME Account. With zero fall-below fees, there’s little stress with keeping a minimum balance. With the account, you can also complete free FAST, GIRO and payroll transactions.
Unlike many other business banking accounts, you receive free eAlerts to keep track of new transactions to your account seamlessly. Cheque books are $25 a piece, and there is a cheque clearing fee of $0.75 per cheque from 1 January 2024.
Account holders have to pay $28 per month to use the account. This is waived for the first 12 months.
| Minimum Initial Deposit | No Initial Deposit Required |
| Minimum Monthly Balance (and Fall Below Fee) | No Minimum Balance Required and No Fall Below Fee |
| Monthly Maintenance Fee | $28 (waived for first 12 months) |
| Online Banking Features | Internet and mobile banking, digital tokens, free eAlerts |
| Scalability | – Free FAST, GIRO and Payroll transactions via BizChannel@CIMB – $15 per over the counter (OTC) transaction – $15 flat fee for outward TT |
| Multicurrency Features | SGD Only Open a separate CIMB Foreign Currency Current Account |
| Cheque book options (and charges) | $25/ cheque book Cheque-clearing fee is $0.75 per cheque, starting from 1 January 2024 |
| Others | Early closure fee: $40 for accounts closed within first 6 months eAlert: Free |
How To Open: There is an online application function for the CIMB SME Account that can be completed in under 15 minutes. Businesses can use Myinfo business to input your corporate details. You should have your UEN number and Business Registration Number on-hand when applying. You can also opt for a Shariah-compliant CIMB SME-i Account.
Low Cost, Fuss Free Business Banking For Startups And Small Businesses
As a small business owner, you are responsible for choosing the most suitable business banking account for your small business. The ones featured above are just some of the options available in Singapore, and there are other business banking accounts for business owners to consider.
The above criteria also give you an idea of what you need to look out for when choosing the best business bank account that meets your needs.
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