Every business needs a bank. Singaporean businesses need a banking partner for secure capital management and seamless financial transactions. Banks also offer vital services such as business loans, trade finance, and foreign exchange facilities. These services are crucial to navigating Singapore’s robust financial landscape and supporting business growth in a globally interconnected economy.
Banks also offer payroll accounts to help businesses disburse their employees’ salaries more efficiently. If your business needs assistance in payroll management and other vital HR services, U Ventures offers customised HR consultancy services aligned with your business goals.
Singapore, being the financial hub that it is, is home to several banks that cater to the needs of business owners. Your choice of a banking partner will depend on the kind of business you have and its specific needs.
In this article, you’ll get a quick look at seven of Singapore’s most popular local and international banks for businesses, along with what sets them apart from their peers. It’s a good idea to make a shortlist and then scrutinise each bank’s service offerings up close before you choose.
Comparing Business Bank Accounts
It’s easy to get distracted by all the different services banks have for businesses, such as financing options, international fund transfers, multiple-currency accounts and online banking. The trick is to focus on what your business needs and find out which banks offer it best.
1. CIMB
Kuala Lumpur-based CIMB Group Holdings Berhad is a leading Malaysian universal bank with operations across fast-growing ASEAN economies. As an investment bank, CIMB boasts an extensive retail presence with 1,080 branches throughout the region.
CIMB offers a range of business accounts to meet the needs of Singapore businesses. Its SME Account, for instance, has no initial deposit, no minimum average balance requirements, and no fall below fees–ideal for businesses that are just starting.
The CIMB BusinessGo Account is a high-interest earning account, with a minimum monthly average balance of SGD30,000, or a fee of SGD88 is applied.
2. DBS.
One of Asia’s leading banks with more than 12 million customers in 19 markets, DBS offers business banking solutions for SMEs and MNCs.
For new business owners who want to open an account online, there is an option to prefill your business information through ACRA search. DBS’ digital banking capabilities have also been praised for ease of use and comprehensiveness, meaning you would be able to do most of your banking tasks online.
The DBS Multi-Currency Account offers a flexible solution for businesses managing multiple currencies. With a minimum balance of SGD10,000, the account includes 100 free local transfers per month and provides access to 50 free FAST and 50 free GIRO transactions monthly.
A flat fee of SGD30 applies for outward telegraphic transfers (TT), and competitive FX rates are available through FX Online (DealOnline). The account incurs an SGD40 monthly service charge, which is waived if the average daily balance is at least SGD10,000 or equivalent. An annual account fee of SGD50 applies, and over-the-counter transactions incur an SGD20 fee.
DBS also offers various loans and financing solutions for businesses.
3. Maybank.
Malaysia’s largest financial services group and Southeast Asia’s fourth-largest bank in terms of assets, Maybank, has over 2,600 branches in 18 countries, including ASEAN. Singapore is one of its largest operations overseas.
As one of the most popular banks for SMEs, Maybank asks for an initial deposit of SGD1,000 but will not require you to maintain a minimum monthly balance or charge any fees. New business owners may want to try its FlexiBiz account before moving up to the PremierBiz account.
Enjoy no monthly fees, 24/7 free access to Business Internet Banking, a complimentary all-in-one business debit card, attractive interest rates up to 0.038% p.a., and instant fund transfers via FAST for just SGD0.50 per transaction.
Maybank also offers SME e-Financing where business owners can secure loans of up to SGD150,000.
4. OCBC.
Singapore’s longest-established bank and Southeast Asia’s second-largest financial services group, OCBC, offers a range of business banking solutions that start-ups might find particularly helpful.
You may choose to open their Business Growth Account, which the bank considers its “all-in-one business bank account for SMEs.” You can apply for an account online, which means no paperwork or queuing, with a minimum initial deposit of SGD1,000. The account has a low minimum monthly balance of SGD1,000 and a fall below fee of SGD15.
If your business is more established or you’re planning to set up shop in Singapore from overseas, the Business Entrepreneur Account Plus might be more suitable. The minimum initial deposit is SGD30,000, while fall below fees amount to SGD50 when you fail to reach the minimum monthly balance of SGD30,000.
Lastly, if your business handles transactions from suppliers and customers in multiple currencies, the OCBC Multi-Currency Business Account is your best bet. It allows depositors to transact in 13 major currencies. You can open the account alongside your main SGD business account with no initial deposit or minimum balance requirement. The SGD10 monthly fee is waived if you use the OCBC Business Growth Account.
If your business has been operating in Singapore for six months to two years, you can apply for a Business First Loan and enjoy 50% off facility fees. Eligibility requires at least 30% ownership by a Singaporean or Singapore PR, one employee, and over 50% equity owned by individuals.
5. Standard Chartered.
UK-based Standard Chartered has a global footprint stretching across Asia, Africa and the Middle East. For businesses in Singapore, the BusinessOne account requires an initial deposit and an average monthly balance of SGD30,000 for an SGD account (USD30,000 for a USD account)—if you fall below that, you’ll have to pay a monthly fee of SGD50. It comes with a Business Debit Card and free access to its Internet Banking Service.
The bank also offers a Non-USD Foreign Currency account with an average balance of USD10,000 or its equivalent. Otherwise, the fall below fee is USD50. It is available in multiple currencies, and you will get a free Business Debit Card and online banking service.
The bank offers financing solutions, such as a Business Instalment Loan of SGD500,000, Business Property Loan, and Business Working Capital.
6. UOB.
Since its beginnings 80 years ago, United Overseas Bank or UOB has expanded its international presence to include Singapore, Malaysia, Indonesia, Thailand and China.
UOB offers an eBusiness Account with a minimum initial deposit of SGD1,000 and a minimum average daily balance of SGD5,000. There is an annual account fee of SGD35 and a monthly fall below fee of SGD15, which is waived in the first 12 months.
You also get free access to the UOB Infinity and UOB SME App. However, there is an over-the-counter deposit and withdrawal fee of SGD20 per transaction and a cheque-clearing fee of SGD0.75. x`
The account is open to sole proprietors, partnerships/limited liability partnerships, private limited companies, and foreign incorporated companies.
7. Airwallex.
It is a digital finance platform designed to streamline global payments, making them simpler, faster, and more cost-effective. Businesses can open a global business account to hold, receive and send money in over 40 currencies, eliminating the complexity typically associated with international transactions. In addition, you can get competitive foreign exchange rates and no monthly fees for local and foreign currency business accounts.
Airwallex also serves as a financial solution for businesses looking to expand internationally. Companies can leverage Airwallex’s global accounts to collect payments like a local in key markets. Additionally, with Airwallex’s cards and expense management tools, businesses can streamline their expenses, gain better visibility, and maintain tighter control over their spending. It also enables integration with Xero, thus ensuring that your books are always up to date.
While Airwallex offers numerous advantages for businesses, keep in mind that as a digital-only platform, it lacks in-person banking services, especially if you require personalised assistance from bank representatives. Airwallex’s technology-based platform provides much flexibility and accessibility, but it may also be a hurdle for businesses that aren’t as technologically inclined. Managing accounts digitally might require a learning curve for some.
Get Expert Advice from U Ventures
Given that there are so many things to consider when choosing a bank, many business owners ask their accounting services provider for assistance in reaching a decision, especially when it comes to business incorporation.
If you need help setting up your business bank account, get friendly and expert advice from U Ventures. We’ll be happy to help in any way we can. You may also contact us for tailored HR consultancy services to help you optimise your workforce, streamline your processes, and enhance employee engagement.
Schedule a consultation with us today! You can reach us by calling or messaging on WhatsApp at +65 8180 5515, or contact our office directly at +65 6735 8135.
Sources:
https://www.ipb.citibank.com.sg/english/cpc/ipb_prod_business_banking.htm
https://www1.ipb.citibank.com.sg/en/citigold/apply-online?icid=IPBOFAJ4ENGLBLSBOA&citiGold_page=true
https://www.dbs.com/internationalbanking/our-network.html
https://www.dbs.com.sg/sme/default.page?pk_source=google&pk_medium=organic&pk_campaign=seo
https://www.maybank.com/en/index.page
https://www.maybank2u.com.sg/en/business/local-enterprise/sme/manage-day-to-day/deposits/open-account.page?gad_source=1&gclid=Cj0KCQjwrp-3BhDgARIsAEWJ6SyRV6xU97NDl8THG7bC4FkO0TJFrUilsD7ClemYJdiv7HgNF1QAPmgaAkCrEALw_wcB
https://www.ocbc.com/group/about-us/group-business.page
https://www.ocbc.com/business-banking/smes/accounts
https://www.ocbc.com/business-banking/articles/best-smes-accounts
https://www.sc.com/sg/business-loans-and-working-capital/
https://www.sc.com/sg/business-accounts/businessone/
https://www.guidemesingapore.com/business-guides/managing-business/banking-funding-and-finances/opening-a-corporate-bank-account-in-singapore
https://www.sc.com/en/
https://www.citigroup.com/citi/about/countries-and-jurisdictions/united-states-usa.html
https://www.citibank.com.sg/gcb/static/aboutus.htm?lid=SGENCBGGNFOTLABOUTCITI
https://www.incorporate.sg/guide/incorporate/bank-i-choose-start-business-account-singapore/
https://transferwise.com/gb/blog/opening-a-bank-account-in-singapore
https://blog.talenox.com/best-business-bank-accounts-singapore-dbs-ocbc-uob/
http://adriantan.com.sg/which-local-bank-has-the-best-banking-support-for-startups/
https://vulcanpost.com/595890/3-top-choices-startup-banking-partners/
https://www.airwallex.com/sg/business-account
