Comparison of Business Bank Accounts In Singapore For New Business Owners

Starting a new business can be both exciting and challenging. One of the most critical decisions you’ll need to make as a new business owner in Singapore is choosing the right bank account. With numerous options available, it can be overwhelming to figure out which account best suits your business needs.

In this blog post, we’ll guide you through some of the best business bank accounts in Singapore, focusing on the features and benefits that matter most for new business owners. Let’s start with the DBS Business Multi-Currency Account – Starter Bundle, then explore the CIMB SME Account, the UOB eBusiness Account, and an alternative option, the Airwallex Business Account.

1. 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. This account is designed to prepare your business for global operations from day one, providing both local and international payments and collections in a single account.

Key Features

• Multi-Currency Transactions: 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).
• No Initial Deposit Required: Start your account with no initial deposit.
• No Minimum Balance and Fall Below Fee: Enjoy the flexibility of no minimum balance requirements and no fall below fee.
• Unlimited Free FAST and GIRO Transactions: Benefit from unlimited free FAST and GIRO transactions (excluding Bulk Payments and Payroll) if you sign up under the Starter Bundle.
• Online Banking Features: Access comprehensive online banking features such as internet and mobile banking, digital tokens, and eAlerts.
• Scalability: Suitable for various business types, including Private Limited Companies, Sole Proprietors, Partnerships, Limited Partnerships, Limited Liability Partnerships, and official organizations like Clubs, Associations, and Charities.

Bank Fees 

• Monthly Maintenance Fee: $10
• Cheque Clearing Fee: $3 per cheque, discouraging cheque usage

Other Charges

• $40 per OTC transaction
• $30 flat fee for outward TT
• $25 per cheque book
• $8 per month for eReports on account information and trade finance reports and alerts

Application Process

You can start your application for a DBS business account online. If you’re a Singaporean or PR opening an account for a Singaporean incorporated business, you can usually complete your entire application online in just a few minutes.

For expats or businesses with more complex structures, you will need to register your interest and wait for a call from a DBS business banking team member.

2. CIMB SME Account

Another good option for SME business owners is the CIMB SME Account. This account offers a range of features designed to make banking convenient and cost-effective for small and medium-sized enterprises.

Key Features

• Zero Fall-Below Fees: There’s no stress of keeping a minimum balance with zero fall-below fees.
• No Initial Deposit Required: Start your account with no initial deposit.
• Free Transactions: Enjoy free FAST, GIRO, and payroll transactions via BizChannel@CIMB.
• Free eAlerts: Receive free eAlerts to keep track of new transactions seamlessly.
• Online Banking Features: Comprehensive online banking features including internet and mobile banking, and digital tokens.
• Cheque Clearing Fees Waived: Although cheque books cost $25 each, cheque clearing fees are waived.

Bank Fees 

• Monthly Maintenance Fee: $28, waived for the first 12 months.

Other Charges

• $15 per OTC transaction
• $15 flat fee for outward TT
• $25 per cheque book
• Early closure fee of $40 for accounts closed within the first 6 months

Application Process

The CIMB SME Account offers a straightforward online application process. You can complete the application in under 15 minutes using Myinfo Business to input your corporate details. Ensure you have your UEN number and Business Registration Number on hand. Required documents include:

• Business registration documents
• NRIC/Passport of business owners/directors
• Latest income tax notice of assessment (if applicable)
• Latest 6 months’ bank statements (if applicable)
• Latest financial statements (if applicable)

Once you have these documents ready, you can begin your online application, potentially receiving your account number on the same day upon successful application. Additionally, CIMB offers a Shariah-compliant alternative, the BusinessGo-i Lite.

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3. UOB eBusiness Account

The UOB eBusiness Account is designed to provide new business owners with a cost-effective and efficient banking solution. This account offers a range of features and benefits tailored to meet the needs of SMEs.

Key Features

• Low Minimum Deposit: Start your account with a minimum initial deposit of $1,000.
• Low Minimum Average Daily Balance: Maintain an average daily balance of $5,000 to avoid the monthly fall-below fee.
• Free Transactions: Enjoy free FAST and GIRO transactions. Specifically, you get a rebate of SGD0.50 per transaction on up to 60 outgoing FAST or PayNow FAST transactions and SGD0.20 per transaction on up to 60 GIRO Payment and Collection transactions per month via the UOB SME app or online.
• Free Bulk Payroll Transactions: Benefit from 100% rebates for Bulk Payroll fees via the UOB SME app or online.
• Online Banking Features: Manage your finances on a single platform with UOB BizSmart Digital Solution, which helps with invoicing, HR, and accounting. You can import bank account feeds for automatic reconciliation and provide faster payment options to customers via PayNow QR or NETS PayCollect.
• Foreign Exchange Services: UOB offers a team of FX specialists to help with foreign exchange services like FX Spot and FX Forward. Enjoy zero remittance charges for the Vietnamese Dong, Taiwan Dollar, Burmese Kyat, and Korean Won.

Bank Fees 

• Annual Account Fee: $35, waived for the first year.
• Monthly Fall-Below Fee: $15, if the average daily balance falls below $5,000 (waived for the first 12 months).

Other Charges

• $20 per OTC transaction
• Cheque clearing fee of $0.75 per cheque
• Early closure fee of $50 for accounts closed within the first 12 months
• Cheque book charge of $25 per cheque book (first cheque book charge waived for accounts opened from 1st April 2024 onwards)

Application Process

The UOB eBusiness Account can be opened instantly online for Singapore-registered businesses. Applicants must be Singaporean or PR for instant account opening. To apply:

1. Prepare the required documents:

• Business registration details (company name or UEN)
• Identification details for SingPass or CorpPass login
• Images of your signature for upload

2. Apply online instantly with your SingPass login via MyInfo Business.

• Provide your business registration information and upload the required documents during the application.
• Upon successful application, receive your UOB eBusiness Account number instantly online.

4. Airwallex Business Account

For business owners seeking an alternative to traditional banks, the Airwallex Business Account offers a versatile and modern solution. Airwallex’s Global Account is designed to streamline global financial operations, providing quick setup of domestic and foreign currency accounts.

Key Features

• Multi-Currency Accounts: Manage multiple currencies including SGD, USD, EUR, GBP, AUD, CAD, HKD, JPY, IDR, NZD, CNY, and more.
• Global Transfers: Make transfers to over 150 countries, with over 70% of transfers arriving on the same day.
• Corporate Cards: Issue multi-currency corporate cards for employees, allowing purchases in multiple currencies without international transaction fees and offering unlimited 1% cashback on business expenses.
• Automated Workflows: Automate domestic and international bill pay workflows with ease.
• APIs: Use Airwallex’s APIs to meet complex business requirements and integrate with your existing systems.

Benefits

• No Account Opening Fees or Monthly Charges: Save on traditional banking fees with no account opening fees, monthly charges, or transaction requirements.
• Local Bank Details: Receive local bank details for easy receipt of funds globally.
• Security: Ensure fund security with end-to-end encryption.
• Real-Time Management: Manage all purchases and expenses in real-time from a single dashboard, with features such as spending limits, custom approval workflows, and instant card management.
• Expense Management: Pay SGD5 per cardholder per month for the Expense Management module, which includes features like spending limits, approval workflows, and detailed expense tracking.
• Payment Gateway: Facilitate one-time or recurring online payments with support for multiple payment methods and currencies, fraud prevention, and multi-currency pricing.
• Accounting Integration: Integrate with accounting software to streamline bookkeeping, automate tasks, and expedite cash flow cycles.

Application Process

Businesses can sign up online, and once onboarded, they can set up multiple domestic and foreign currency accounts within minutes. The Global Account opening process leverages digital efficiency, AI-enhanced KYC, and accessibility across multiple locations worldwide, making it simple and quick for eligible businesses. Typically, the account approval process takes about 3 days, which is faster than many traditional banks. 

Summary

Choosing the right business bank account is crucial for the smooth operation and growth of your new business. The DBS Business Multi-Currency Account – Starter Bundle, CIMB SME Account, UOB eBusiness Account, and Airwallex Business Account each offer a range of features and benefits tailored to meet the needs of new business owners. By understanding the specific features and costs associated with each account, you can make an informed decision that aligns with your business goals and financial needs.

Using an incorporation service as an extension of your team

Setting up a company in Singapore can be challenging, but with professional support, it can be simple, Counto’s mission is to support your new business, take away the complexities of compliance, and save you time and money throughout the year. Speak to us directly on our chatbot, email us at [email protected], or contact us using this form.

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