So you’ve incorporated your company. Next on the agenda is opening a business account. When it comes to running a business, the budget lies at the top of the priority list. So what are the costs of opening a Singapore business account?
Opening a Singapore business account is compulsory for a local company. As a newly minted company, you’ll probably want to keep initial costs as low as possible, while maximising your returns.
Your business needs differ depending on whether you’re a startup, SME, or a large corporation. That’s why choosing the best business account that suits your company’s budget and business process is extremely important.
Business accounts are like subscribing for a service. Usually, banks offering business accounts have ‘subscription rates’ that include three things: a minimum deposit, a minimum balance, and monthly fees.
Several business accounts charge monthly maintenance fees. This is usually the case because bank-run business accounts include other services and features.
The DBS Business Digital Account has the highest monthly rate of S$18, followed by OCBC’s at S$10.
If you’re running a small business—digital service or e-commerce—paying a monthly fee for a business account might not be the most practical thing to do in terms of costs.
We recommend looking towards Singapore business accounts that do not require monthly upkeep fees. These include Maybank, Standard Chartered Bank, and Aspire’s business accounts which do not require a monthly maintenance fee.
Most required minimum deposits average at S$1000 in Singapore. However, certain banks such as Standard Chartered have high minimum deposit fees.
If you’re a smaller business without a huge starting capital, having a high minimum deposit for a business account might not be feasible for you.
In this case, the OCBC Business Growth Account and Aspire are more functional business accounts for your company.
Similar to having a minimum deposit, a minimum balance is usually the defining factor for many new companies when it comes to choosing a business account.
Having to maintain a minimum balance such as the one offered by Standard Chartered, can be extremely difficult especially for small businesses and start-ups.
For example: Your company deals with a high volume of local and foreign transactions each month. Having to maintain a daily minimum balance might be a challenge for many small businesses.
Choosing a Singapore business account with a minimum balance might also end up causing more costs to your company. This is because several business accounts charge fall-below fees if you’re unable to maintain a minimum balance.
Singapore’s business landscape is home to a variety of business account providers. These range from local and foreign banks (OCBC, DBS, UOB, Maybank), to fully integrated online business account services (Aspire).
To help you make the best decision, we’ve collated a breakdown of the minimum deposit, minimum balances, and monthly fees required to maintain these Singapore business accounts.
View our full pricing comparison across business accounts in Singapore here.