Best Bank Accounts for Freelancers
Regardless of your industry, being a freelancer sure has its fair share of perks. From being your own ‘boss’; to having control of your own time, working anywhere you want, whenever you want; the list goes on. However, contrary to popular belief, working in the freelance industry also has drawbacks. One of the most significant disadvantages is when it comes to finances.
When it comes to finances, it may be a struggle to find the right bank account for someone with inconsistent cash flow. The great news is you don’t need a fancy education to learn the ropes on managing your finances well for someone in the freelance economy. To get you started, here’s a simple list of some of the best bank accounts for freelancers in Singapore!
5 Best Bank Accounts for Freelancers
When opening a bank account, you’d want one that does not require minimal monthly service deductions and one with low maintaining balance.
1. Aspire Business Account
The Aspire Business Account offers a variety of benefits for its account holders. There is no minimum balance, transfer fees, and fall-below fees, making it the #1 digital business account for SMEs and startups. On top of that, you’ll also be able to redeem 1% cashback for all online marketing and SaaS purchases with no strings attached.
Here are additional advantages you can enjoy when opting for the Aspire Business Account:
- Aspire empowers you to grow your business beyond borders, all from a single platform. Gain access to multi-currency accounts and cards, making it effortless to work with international clients. Get started in just minutes.
- You often juggle multiple clients or projects. Aspire allows you to manage them seamlessly, offering multi-currency accounts and cards to keep your finances organised and efficient.
- Take control of your freelance finances with real-time visibility. Aspire lets you delegate spending across different clients or projects while ensuring your business stays efficient and informed.
- Enjoy fast and transparent foreign exchange payments in 30+ currencies, helping you reduce transaction costs with competitive FX rates. This is crucial for you, as freelancers often deal with international clients.
- Aspire seamlessly integrates with your accounting software, enabling you to close your books 2x faster without worrying about manual errors. Keep your financial records in order effortlessly.
- Leverage financial insights to grow your freelance business. Aspire empowers you to bring finance to the forefront, helping you make informed decisions and stay ahead in your industry.
The only downside to opening a business account with Aspire is that account holders must be legally registered as a business. Fret not; we have provided a guide on whether freelancers should register for a private limited company here. In partnership with Osome, Aspire can help you register for a private limited company and open a business account on the same day. To find out more on just how to do this, click here.
2. DBS Multiplier Account
While the DBS Multiplier Account may not seem as attractive at first with a base interest rate of 0.05% p.a., you are rewarded with higher interest rates the more you transact. The deposit account also rewards you with a higher interest each time you credit your income or transact in credit card spend, insurance, home loan installment, and investments. This account offers you access to the Singapore dollar along with 12 foreign currencies and includes digibank services and eStatements.
To be eligible for this account, you must be at least 18 years old. You can open this bank account with no minimum balance. However, a monthly service charge of S$5 applies if your average daily balance dips below S$3,000, which includes the SGD equivalent of your foreign currency balance. However, this fee can be waived if you're 29 or younger or your DBS Multiplier account is your first DBS/POSB account (applied online only). Please be aware that closing the account within 6 months will incur an early account closure fee of S$30.
3. UOB One Account
With a minimum initial deposit of just S$500 and a maximum interest rate of up to 3.88% p.a., there’s no question on why the UOB One Account is popular amongst Singaporeans. This account is straightforward and great for people who hate doing the math with their uncomplicated interest rate tiers.
Get up to 7.8% p.a. interest by meeting two straightforward criteria: spend a minimum of S$500 on an eligible UOB card, and either credit your salary with a minimum of S$1,600 or make three GIRO payments monthly. It's a great way to boost your savings while enjoying the perks of your UOB card.
4. OCBC 360 Account
Love cashback reward programs? Say hello to the OCBC 360 Account. From 6% cashback on everyday dining to an S$80 cashback cap every month, this account is best for people with cash they’d like to use for spending. However, there are benefits for those who want to save as well.
To open this account, an initial deposit of S$1,000 is required. Additionally, in order to automatically waive the OCBC 360 account minimum balance monthly fall-below fee, you must maintain a minimum average daily balance of S$3,000.
Like most bank accounts, at OCBC, you can discover a bonus interest structure that caters to your preferences. Earn bonus interest of varying percentages per year on the first S$100,000 of your account balance across different categories. Whether it involves signing up for new products or engaging with OCBC's services, the bonus interest structure empowers you to optimise your banking experience.
5. MayBank Save Up Account
MayBank Save Up Account holders are definitely spoiled for choice with up to ten different spending categories, which allow them to receive bonus interests. These range from credit card spend, GIRO payments, and unit trusts as well as home, renovation, car, and education loans.
Eligibility for the SaveUp Account in this program requires individuals to meet the following criteria: be 18 years of age or older, have the SaveUp Account linked to a Maybank Debit Card, and adhere to specific initial deposit requirements, which are S$500 for Singapore Citizens and Singapore Permanent Residents and S$1,000 for individuals of other nationalities.
In terms of fees and charges, the Maybank Save Up account minimum balance monthly fees is S$2. If the average daily balance falls below S$1,000; however, this fee is waived for customers below 25 years old. Additionally, there is a S$30 early account closure charge if the account is closed within 6 months.
The base interest for this account is at 0.3125% p.a., which is six times more than the market standard before bonuses. This makes MayBank Save Up Programme the preferred account for freelancers with moderate savings who are looking to maximise interest earnings.
Why is it important to manage your finances as a freelancer?
The freedom and flexibility that comes with being a freelancer sure comes with a price: the unpredictable income. Since freelance employees have the opportunity to take control of how many clients they have and how much they make, it is also a great way to take charge of your finances and have a financial plan set in stone as early as you can. Make sure you track your money with a budget plan, save for emergencies and future investments, use the right tools, and have the best bank accounts that cater to your needs.
Why not consider what Aspire has to offer? Aspire Kickstart offers the first same-day online incorporation and business account opening in Singapore from anywhere in the world. Say goodbye to long waits and hefty paperwork. Aspire Kickstart cuts through the stress and confusion that come with incorporating a company and opening a business account in Singapore.
You can save money and incorporate and open a business account on the same day with Aspire Kickstart - packages start as low as S$280! That’s 11% cheaper than if you incorporated by yourself.
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