Opening the right business bank account in Singapore affects everything from daily payments to cross-border collections and FX costs. This guide explains account types, onboarding expectations, and how SMEs can avoid hidden charges without locking themselves into products they won’t fully use.
1. Account types and who they fit
- Basic current accounts: Good for new entities that primarily need local SGD payments (FAST, GIRO, PayNow for Business). Low frills, usually lower minimum balances.
- Multi-currency accounts (MCA): Useful if you invoice or pay in USD/EUR/GBP/JPY. Consolidates balances and reduces frequent conversions.
- Premium/relationship packages: Bundles that add trade finance, FX facilities, and preferential service—but often require higher minimum balances.
- Digital/SME-focused tiers: Streamlined onboarding, app-first experience, simple fee schedules. Ideal for lean teams.
2. What fees actually matter
Rather than chasing the “lowest everything,” focus on all-in monthly cost based on your pattern:
- Minimum balance & fall-below fee: If you keep small balances early on, a modest minimum target matters more than the headline monthly fee.
- Payments pricing: How many FAST/PayNow transfers per month? Are international wires frequent?
- FX conversion spread: If you collect in USD/EUR and convert to SGD, FX spread usually dwarfs a few dollars of transfer fees.
- Integration & cards: Bookkeeping integrations (Xero/QuickBooks), virtual cards, and corporate card rebates can offset fees.
3. Quick comparison snapshot (features vary by bank and tier; check current schedules)
Bank (example) | Entry Account Focus | Indicative Min Balance | Typical Fall-Below | Local Payments (FAST/PayNow Biz) | Multi-Currency | Notes |
---|---|---|---|---|---|---|
Bank A | Basic SGD current | Low–Moderate | Low | Low cost, generous monthly free quota | Optional add-on | Good for early-stage with mainly local payments |
Bank B | SME digital tier | Low | Low | App-centric, simple bundles | Built-in MCA | Strong online onboarding, limited branch needs |
Bank C | Relationship package | Moderate–High | Moderate–High | Preferential pricing at higher volumes | Yes | Better if you need trade/FX facilities soon |
Bank D | International bank | Moderate | Moderate | Robust cross-border rails | Yes (wide) | Smooth if you bank across regions |
Tip: Model 3 scenarios (low/med/high volumes) for the next 12 months and back-solve the cheapest total cost per scenario.
4. Onboarding checklist (local vs foreign-owned)
Have documents complete and consistent. Small mismatches (e.g., different business descriptions on corp docs vs website) trigger extra queries.
Entity Type | Core Docs (Typical) | Extras Often Requested |
---|---|---|
Local Pte Ltd (SG directors) | Biz Profile (ACRA), Constitution, Board Resolution, NRIC/Passport of directors/UBOs, Address proofs | Website/screenshots, sample invoices/contracts, brief business plan |
Pte Ltd (foreign-owned) | Above + notarized/translated corporate docs of parent, group chart | Bank statements of parent, supplier/customer letters, proof of operating presence in SG |
LLP / Sole-Prop | Registration proof, NRIC/Passport, business address proof | Licenses if regulated activity, rental/utility bill for place of business |
Timing: Simple local cases can complete within days; foreign-owned or cross-border models often take longer due to enhanced KYC.
5. Avoid common rejection triggers
- Vague or mismatched business description. Align your ACRA activity, website copy, and invoices.
- No evidence of real activity. Provide pipeline emails/LOIs, sample contracts, supplier quotes.
- High-risk geographies or sanctioned sectors. Prepare clear compliance narratives and screening tools.
Mitigation table
Risk Flag | What Banks Worry About | Your Mitigation |
---|---|---|
Cross-border revenue | Source of funds, counterparties | Provide KYC on key customers, contract samples, payment corridors |
Rapid movement in/out | Money-laundering patterns | Forecast cash cycles, explain working capital rhythm |
Crypto/fintech adjacency | Licensing, AML controls | Clarify scope (no custody/exchange), show compliance stack |
6. Local rails you’ll actually use
- FAST: Instant SGD credit transfers between banks; ideal for vendor payments.
- PayNow for Business: Customers pay via UEN/QR; reconcile faster than manual bank transfers.
- GIRO: Good for recurring bills (utilities, payroll with lead time).
7. If you need USD/EUR collection
Prefer an MCA with named IBAN/US routing details, not pooled references. This improves payer confidence and reconciliation. Negotiate FX with a tiered spread: the goal is a declining spread as monthly volumes grow.
8. A 15-minute cost sanity check (monthly)
- Estimate FAST/PayNow volume; 2) Estimate international wires; 3) Estimate FX conversions; 4) Add possible fall-below fee. Compare two banks across low/med/high volume. Choose the cheapest in your likely range, not the absolute cheapest in a single metric.
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