Bank charges in Singapore: comparisons, how to reduce

A bank account is your business’s financial engine, offering essential services that fuel your enterprise’s growth. However, you need to be aware of bank charges so you can manage costs effectively. Depending on the bank account, you might have to pay maintenance fees and fall-below fees. There are also bank charges for services like FAST transfers and SWIFT payments.

Understanding bank charges helps you avoid unexpected costs that might impact your profit margins. In this guide, we’ll explore the common bank fees in Singapore, compare fees across popular business bank accounts, and smart ways to minimise bank charges.

What are bank charges? 

Bank charges are the costs associated with using financial services, such as transferring money, accepting payments, or opening a business account. Bank fees play a big role in everyday business situations like payroll processing or supplier payments. As you compare business bank accounts, it’s important to review the fee schedule and fine print, especially for items like free local transfers or fee waivers. 

It’s important to note that banks generally structure their fees based on the type of business account, with smaller fees for SME accounts, since they typically require fewer features and lower transaction volumes. Larger corporations might pay higher fees because their accounts can handle more complex services and higher operational demands.

What are the different types of bank charges? 

Banks in Singapore apply various charges to business accounts. Here are some common fees you might encounter:

Account setup fees

Account setup fees are a one-time charge imposed by banks when businesses open a new account with them. These fees cover the administrative costs of processing the account application. Banks may also require a minimum initial deposit to open the account and ensure a baseline balance.

For instance, a business opening a new corporate account may be charged a S$50 account setup fee and a minimum initial deposit of S$1,000. These fees might cover the costs of verifying documents or activating account features. Some banks may waive this fee for small-to-medium enterprises (SMEs) or new customers. 

Account maintenance fees

Account maintenance fees – sometimes called admin fees – are recurring charges banks apply to provide ongoing services. These fees often cover administrative tasks like account monitoring, monthly statements, and customer support.

For example, a bank might charge you a S$20 monthly admin fee to keep your business account active. Some banks waive these fees if the account maintains a minimum balance, so it’s worth checking for such conditions to save on costs.

Minimum balance requirement and fall-below fees

A minimum balance requirement is the minimum amount of money a bank requires customers to maintain in their accounts. This may be calculated as a daily average balance, which is the sum of the account balance per day, divided by the number of days in that month.

Fall-below fees can be imposed by the bank when the account balance falls below the required minimum balance.

For example, if a bank requires a daily average balance of S$5,000 and the account holder maintains S$6,000 for 15 days and S$4,000 for the next 15 days, the daily average balance would be $5,000. If the balance drops below S$5,000 and the average is not maintained, the bank may charge a fall-below fee.

Transaction fees

Transaction fees are charges banks apply when a business makes payments to another bank account within Singapore or overseas. These fees vary depending on the bank transfer method used - whether it’s FAST, GIRO, PayNow, or MEPS.

Imagine a business in Singapore initiating a MAS Electronic Payment System (MEPS) transfer - a same-day payment to a local supplier. The bank charges S$20 for the MEPS transaction. While the fee is relatively small, businesses making frequent MEPS payments need to account for these charges as part of their operating costs.

Some bank accounts offer free FAST or GIRO transfers with monthly limits. Transaction fees can also apply if you exceed the free transfer limits. 

Cross-border fees

Cross-border fees are charges applied when businesses send or receive payments across countries. These fees often include SWIFT fees, processing costs, currency conversion charges, and intermediary bank fees.

Suppose a wholesaler in Singapore uses the SWIFT network to pay suppliers in China. The bank charges a S$30 SWIFT fee or outward TT fee for processing the international payment. Banks can also charge an inward TT fee when the retailer receives a cross-border payment from a customer in Indonesia.

Overdraft and insufficient funds fees

Overdraft fees are charges that banks apply when a business withdraws or spends more money than it has available in its account. These fees cover the cost of allowing the account to go into a negative balance temporarily.

Let’s say an SME accidentally overspends on a supplier payment, leaving their account S$500 short. The bank allows the transaction to go through but charges a S$50 overdraft fee for covering the shortfall. While overdraft protection can be helpful in emergencies, these fees can quickly add up.

Inactivity and dormancy fees

Inactivity and dormancy fees are charges banks impose on business accounts that haven’t been used for a specified period. These fees cover the cost of maintaining an account that shows no activity. If you close an account less than a year after opening it, you may also have to pay an early account closure fee.

For example, a business in Singapore opens a secondary account for future projects but doesn’t use it for over a year. The bank classifies it as dormant and charges a S$15 monthly dormancy fee until the business makes a transaction with it. To avoid these charges, businesses should regularly review their accounts to ensure they’re being utilised effectively.

Cheque processing fees

Cheque processing fees are charges banks apply for issuing or depositing cheques. For example, a bank charges a business S$2 for every cheque payment they make to a supplier. However, with the Monetary Authority of Singapore phasing out corporate cheques in 2025, this fee is becoming less of a concern.¹

Comparing bank charges in Singapore 

Let’s compare the different bank charges that businesses in Singapore might encounter from leading banks DBS, OCBC, UOB, CIMB, and Maybank. We’ve also added the Airwallex Business Account, a fintech alternative to traditional business bank accounts. The Airwallex Business Account is built for businesses of all sizes and industries. 

The table below compares the fees incurred for the lowest-cost business accounts for each bank against those incurred for the Airwallex Business Account.

CIMB fees and charges

• Fewest fees. The CIMB SME Account has the fewest fees among the traditional bank accounts we compared for the first 12 months.

• Monthly fee. S$28 charge starts after 12 months.

• No setup fees. No charges for account setup.

• Free transfers. No fees for GIRO or FAST payments.

DBS fees and charges

• Multi-currency account. The DBS Business Multi-currency Account allows you to send and receive SGD and 12 other currencies, though a flat fee of S$30 applies for telegraphic transfers.

• Free monthly transfers. Includes 50 free GIRO and FAST transfers per month, then S$0.20 and S$0.50 per transfer applies respectively.

• Cashback debit card. Comes with a debit card offering cashback benefits.

• High balance requirement. Requires a minimum balance of S$10,000.

• Fall-below fee. DBS charges S$40 if the balance falls below the minimum.

• Starter Bundle. Fees and balance requirements are waived for businesses less than 3 years old.

Maybank fees and charges

• No monthly fees. The Maybank FlexiBiz Account provides essential banking services with no monthly maintenance fees.

• No minimum balance. While there are no minimum balance requirements per se, maintaining a higher balance offers perks.

• Balance rewards. Maintaining an average daily balance of at least S$30,000 opens up benefits.

• Free domestic payments. Enjoy 100% rebates on FAST and GIRO payments, capped at 30 transactions per month.

• Transfer fee rebates. Receive a 25% rebate on telegraphic transfer fees.¹⁶

OCBC fees and charges

• Free domestic transactions. The OCBC Business Growth Account supports SMEs with unlimited free FAST and GIRO transactions.

• No initial deposit. No initial deposit or minimum balance requirements.

• Fall-below fee. Maintain an average monthly balance of S$1,000 to avoid a S$15 fee.

• Maintenance fee. Charges a monthly fee of S$10 after the first two months.

UOB fees and charges

• Free monthly transfers. The UOB eBusiness Account includes 60 free GIRO and FAST transfers per month. Thereafter, S$0.20 and S$0.50 per transfer applies respectively.

• Initial deposit required. A minimum deposit of S$1,000 is needed to open the account.

• Daily balance requirement. Maintain an average daily balance of S$5,000.

• Fall-below fee waived. The S$15 fall-below fee is waived for the first 12 months.

• Annual fee waived. The S$35 annual account fee is waived for the first year.

Airwallex fees and charges

The Airwallex Business Account is a fintech alternative for businesses who want an all-in-one financial solution and a cost-effective way to reduce transaction fees. 

• Pay-as-you-go. Airwallex operates with no maintenance or subscription fees. Businesses only pay for the services they use. However, terms and conditions apply and may vary depending on the business.

• No minimum balance. There are no minimum balance requirements.

• Unlimited FAST transfers. Singapore businesses enjoy unlimited FAST transfers for local suppliers and payroll.

• Zero transfer fees. No fees for international transfers to 120+ countries when using local payment methods instead of SWIFT.

How to reduce bank charges

Reducing bank charges starts by choosing a business account aligned with your needs and transaction volumes. You also need to be aware of your chosen account’s fees to minimise costs and maximise value. 

Here are some tips to avoid specific bank fees:

Tips to reduce monthly or annual fees

The best way to avoid annual or monthly fees is to compare business accounts extensively before choosing one. You’ll want an account that has no recurring admin fees, or that waives fees if you meet conditions like a minimum balance. 

You can also reach out to your account provider and explain your business needs, especially if you handle large or frequent transactions. They may offer custom rates or bundled services tailored to your activities.

If your business maintains several bank accounts in Singapore and overseas, consider streamlining them into a single account with Airwallex. Not only do you avoid paying unnecessary fees, you also simplify your financial management and get a consolidated view of your business’s financial performance across entities.   

Tips to reduce fall-below fees

Businesses should monitor their account regularly to reduce fall-below fees and maintain the required average daily balance. Plan ahead by keeping a buffer amount in the account to cover fluctuations, such as unexpected expenses or delays in payments. Consolidating funds from other accounts into the primary account can also help meet balance requirements.  

Tips to reduce domestic transaction fees

If you know you'll make frequent GIRO or FAST payments, use a business account that offers unlimited free transactions. Remember that traditional banks aren’t your only options for low-cost domestic transfers. Consider fintech payment platforms like Airwallex, which offer unlimited FAST payments. 

Tips to reduce cross-border fees

Banks generally use wire transfers or the SWIFT network for international payments, which come with high fees. Minimise cross-border fees by using a fintech alternative like Airwallex, which has a proprietary network of local payment rails. International transfers to 120+ countries are free when you use local transfers (e.g. USD to a supplier in USA) instead of SWIFT. 90% of these payments arrive on the same day. This approach not only saves money but also improves efficiency for businesses handling frequent international payments.

Avoid bank charges with Airwallex: transparent fees, competitive FX rates, and seamless global transactions

Monitoring and avoiding bank charges takes time, but the best way to save both time and money is by choosing the right account from the start. 

Airwallex helps you avoid unnecessary fees with transparent prices and a pay-as-you-go model. No account fees, maintenance charges, or minimum balance requirements to worry about – you’ll only pay for the services you use.

If you’re juggling multiple bank accounts across overseas entities, Airwallex can be a great solution for consolidating your finances. Airwallex has 60+ licences globally, including Singapore where we’re regulated by the Monetary Authority of Singapore (MAS) as a Major Payment Institution. With Airwallex, you get a consolidated view across multiple entities and avoid unnecessary maintenance fees.

Airwallex Business Accounts also comes with features that help you avoid overlooked transaction fees:

• Multi-currency accounts with local bank details. Receive payments in 23+ currencies with no inward TT fees, and no unnecessary conversion to SGD.

• Free local transfers to 120+ countries. Bypass SWIFT and use local payment methods to enjoy fast, zero-fee international transfers. 

• Competitive exchange rates. Airwallex exchanges currencies at interbank rates, with a very low markup, so you can maximise the value of every dollar earned.

• Batch transfers. Save time and money on payroll with Batch Transfers. Pay up to 1,000 Singapore-based and overseas employees in a single transaction, and enjoy zero fees when you use FAST or local payment methods.  

• Integrations with accounting software. Seamlessly sync with Xero, Netsuite, or Quickbooks to simplify your monthly reconciliation and stay on top of transaction fees.

• Corporate cards with built-in Expense Management. Issue unlimited Borderless Cards for free and gain real-time visibility and control over employee spending.

Airwallex simplifies payments so you can focus on growing your business. Open an Airwallex Business Account at no cost today.

Frequently asked questions

1. What are the most common hidden bank charges businesses overlook?

Businesses often overlook hidden bank charges like fall-below fees, which are penalties for not maintaining the required minimum balance. Transaction fees, especially for exceeding free limits on transfers or payments, can add up without notice. Additionally, foreign exchange markups and cross-border fees on international payments may seem small but can increase costs over time. 

2. How can businesses negotiate bank fees with their banks?

Businesses can negotiate bank fees by demonstrating their value as a loyal customer, such as maintaining significant account balances or using multiple services. It helps to compare offerings from other banks and present these options as leverage during discussions. Being clear about the solutions you want, like fee waivers or custom pricing, can lead to better terms that align with your business goals.

3. Are there any banks in Singapore that offer zero-fee business accounts?

Some banks in Singapore offer business accounts with zero fees for opening and maintaining the account. However, transaction fees still apply, especially for international payments. It's important to compare different account options and fees to find one that suits your business's transaction volumes.

4. How often should businesses review their bank statements to identify unnecessary charges?

Businesses should review their bank statements at least once per month to quickly spot any unnecessary charges or unexpected fees. Regular checks help ensure transactions are accurate and provide an opportunity to address any discrepancies promptly. 

5. Are there specific tools that help businesses track and monitor bank fees effectively?

Yes, there are tools that help businesses track and monitor bank fees effectively. Some banks offer in-app fee trackers or notifications that help businesses stay informed about recurring costs.Airwallex can also be integrated with accounting software like QuickBooks and Xero, which automatically categorises and tracks transaction fees. 

Sources

1. https://www.mas.gov.sg/news/media-releases/2023/mas-announces-end-2025-timeline-to-eliminate-corporate-cheques

2. https://www.cimb.com.sg/en/business/solutions-products/cash-management/commercial-current-accounts/cimb-sme-account.html

3. https://www.cimb.com.sg/content/dam/cimbsg/business/documents/tnc/current-accounts/TERMS%20AND%20CONDITIONS%20GOVERNING%20THE%20CORPORATE%20DEPOSITS%20ACCOUNTS%20AND%20SERVICES%20.pdf

4. https://www.cimb.com.sg/en/business/help-support/rates-charges/fees-charges/corporate-pricing-guide/cheque-charges.html

5. https://www.dbs.com.sg/documents/276102/282855/pricing-guide.pdf/ 

6. https://www.maybank2u.com.sg/en/business/local-enterprise/sme/manage-day-to-day/deposits/flexibiz.page

7. https://www.maybank2u.com.sg/en/bank-charges/sg-loans-others/current-accounts.page

8. https://www.maybank2u.com.sg/en/other-items/cheques2024.page

9. https://www.ocbc.com/business-banking/help-and-support/accounts-and-services/business-pricing-guide

10. https://www.ocbc.com/business-banking/smes/transactions/making-payments

11. https://www.uob.com.sg/business/accounts/uob-ebusiness-account.page

12. https://www.uob.com.sg/business/help-support/rates-fees/remittance-fees-outward.page

13. https://www.uob.com.sg/business/help-support/rates-fees/remittance-fees-inward.page

14. https://www.uob.com.sg/business/help-support/rates-fees/general-services-fees.page

15. https://www.airwallex.com/sg/pricing

16. https://www.maybank2u.com.sg/en/business/local-enterprise/sme/manage-day-to-day/deposits/flexibiz.page

This publication does not constitute legal, tax, or professional advice from Airwallex nor substitute seeking such advice, and makes no express or implied representations / warranties / guarantees regarding content accuracy, completeness, or currency. If you would like to request an update, feel free to contact us at [[email protected]]. Airwallex (Singapore) Pte. Ltd. (201626561Z) is licensed as a Major Payment Institution and regulated by the Monetary Authority of Singapore.