The 5 Best Business Accounts in Singapore in 2024

Are you a new business owner, self-employed, or freelancer looking for a business bank account to manage your finances better? If so, this article is for you. A business bank account will allow you to manage your finances better, and it can make accounting and taxpaying easier over the long term by splitting your personal and business expenses.

Different banks have different features. Some highly sought-after features are ease of customer payments, digital banking, issuing e-invoices, managing cash flow, and getting business financing. As such, it is not rare to see established businesses switching business bank accounts.

In this article, we will go through the key factors of business bank accounts that businesses should consider when opening a business bank account in Singapore and compare the best business bank accounts in Singapore.

🔍 Tip: Check out the 5 best banks to use in Singapore in 2024. 

Key Factors to Consider When Opening a Business Bank Account

Here are some key factors businesses should take into account when opening a business bank account in Singapore. We will also use these key factors to compare between the different banks.

🔍 Tip: If you are not in Singapore, check out this offshore banking guide for Singapore.

1. DBS Business Multi-Currency Account - Starter Bundle

Suppose you're among many Singaporeans with a POSB or DBS account. In that case, the DBS Business Multi-Currency Account – Starter Bundle should feel familiar and user-friendly for you as a business owner.

Considering the current business landscape, preparing your business for global operations from the get-go is crucial. As the name suggests, this bank account seamlessly handles both local and international payments and collections in a single account. It allows transactions in Singapore Dollars and 12 other foreign currencies, including the Australian, Canadian, Chinese Yuan (CHN), Hong Kong, Japanese Yen, and US dollars.

It's important to note that the DBS Business Multi-Currency Account – Starter Bundle is specifically designed for businesses incorporated less than three years from the application date. If your business exceeds this timeframe, you must opt for the standard Business Multi-Currency Account, which may involve slightly more costs and procedural steps.

One of the significant perks of this account is the unlimited free FAST and GIRO transactions (excluding Bulk Payments and Payroll) if you sign up under the Starter Bundle. However, there's a notable fee of SGD3 per cheque for cheque clearing, potentially discouraging the use of cheques for transactions.

2. OCBC Business Growth Account

The OCBC Business Growth Account offers a range of features and benefits designed to support business development. 

The OCBC Business Growth Account provides an affordable option for businesses with a low minimum deposit of SGD1,000. Setting up the account is cost-effective, and the online application process with MyInfo Business allows applicants to receive their account numbers quickly.

Once you have the account, you can access OCBC Velocity, the Digital Business Banking platform. This platform allows you to efficiently manage your accounts, initiate payments and collections, handle cash flow, and even create e-invoices without any charges.

There is a SGD10 monthly fee waived for the first two months for the OCBC Business Growth Account, but the account also offers the option to set up an additional OCBC Multi-Currency Business Account. This extension allows you to conduct transactions in 13 foreign currencies, including the US Dollar, Euro, Australian Dollar, Hong Kong Dollar, and Chinese Yuan. Interestingly, both accounts share the same SGD10 monthly fee as long as you have the OCBC Business Growth Account.

OCBC states that it is the only bank that provides free unlimited FAST and GIRO transactions, further enhancing the cost-effectiveness of managing your business finances.

3. UOB eBusiness Account

The UOB eBusiness Account comes with a minimum average daily balance requirement of SGD5,000 and an annual account fee of SGD35 (equivalent to about SGD3 per month).

The UOB eBusiness account offers the UOB BizSmart Digital Solution, a comprehensive platform assisting with essential processes such as invoicing, HR, and accounting, allowing easy accessibility and financial management. Through UOB BizSmart, you can seamlessly import bank account feeds for automatic reconciliation and provide convenient payment options to customers using PayNow QR or NETS PayCollect.

For businesses engaged in cross-border transactions, UOB provides a team of FX specialists to assist with foreign exchange services like FX Spot and FX Forward. You can secure fixed FX rates when remitting funds from Singapore to Malaysia. Additionally, there are zero remittance charges for currencies such as Vietnamese Dong, Taiwan Dollar, Burmese Kyat, and Korean Won.

4. CIMB SME Account

Another choice catering to SME business owners is the CIMB SME Account, which was rebranded from the CIMB BusinessGo Lite Account after 28 July 2023. With the absence of fall-below fees, maintaining a minimum balance becomes stress-free. The account also allows for free FAST, GIRO, and payroll transactions.

Unique to other business bank accounts, the CIMB SME account provides complimentary eAlerts, keeping you almost instantly informed about new transactions in your account. Although each chequebook has a SGD25 charge, cheque-clearing fees are waived.

It's worth noting that there is a monthly account fee of SGD28, but this fee is waived for the initial 12 months for account holders.

5. Maybank FlexiBiz Account

The Maybank FlexiBiz Account is a convenient and cost-effective option for businesses, with a reasonable minimum initial deposit of SGD1,000, making it accessible for newer ventures. While there's a modest SGD10 fall-below fee for balances below SGD1,000, there's no monthly maintenance fee, adding to its affordability as a business bank account.

Especially beneficial for businesses in their early stages of development, the Maybank FlexiBiz Account stands out by offering interest on balances. Although the interest rates are relatively modest—0.018% for the first SGD50,000, 0.028% for the next SGD450,000, and 0.038% for balances exceeding SGD500,000—it adds a unique feature to this business banking option.

Additionally, by switching to e-payments, customers can enjoy rebates of local and overseas transaction fees if they maintain a minimum of SGD30,000 average daily balance in their Maybank FlexiBiz Account.

Conclusion

In conclusion, choosing your first business banking account is important. Depending on what matters to you and your business most, the scores above are merely for your consideration. According to the scores, DBS ranks the highest due to requiring no initial deposit, no fall-below fee, low maintenance fee, great digital banking features, and support for up to 12 other currencies. However, if cheques and payroll transactions are your priority, you might want to choose other business bank accounts.