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So youâve 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?
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Opening a Singapore business account is compulsory for a local company. As a newly minted company, youâll probably want to keep initial costs as low as possible, while maximising your returns.
Your business needs differ depending on whether youâre a startup, SME, or a large corporation. Thatâs why choosing the best business account that suits your companyâs budget and business process is extremely important.
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3 main fees to consider when opening a business account in Singapore
Business accounts are like subscribing for a service. Usually, banks offering business accounts have âsubscription ratesâ that include three things: a minimum deposit, a minimum balance, and monthly fees.
1. 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 OCBCâs at S$10.
If youâre running a small businessâdigital service or e-commerceâpaying 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 Aspireâs business accounts which do not require a monthly maintenance fee.
2. Minimum Deposit
Most required minimum deposits average at S$1000 in Singapore. However, certain banks such as Standard Chartered have high minimum deposit fees.
If youâre 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.
3. Minimum Balance
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 youâre unable to maintain a minimum balance.
Comparing fees for opening a Singapore business account
Singaporeâs 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, weâve 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.
