Compare the best business bank accounts in Singapore for 2024

Whether you're a startup founder or a seasoned entrepreneur, a business account is a catalyst for growth and operational efficiency. Singapore's corporate banking landscape is dominated by DBS, OCBC, UOB, and Maybank. Their long-standing presence and comprehensive solutions make them the first choice for those seeking an SME banking account.

Recently, the rise of digital banks in Singapore has presented better options and unique benefits for businesses, offering more flexible and innovative solutions to adopt.

In this article, we’ll learn more about digital banking for business, look at the differences between “business accounts” and “business bank accounts”, look at offerings from key providers, and explore how you might find the right solution for your needs.

What is a business bank account?

A business bank account, sometimes known as a corporate account, is a specialised banking service for businesses. For insights on how to start a business in Singapore, those who’ve tried to operate their personal and business affairs from the same account know this can get quite complex as your business grows. That’s why dedicated business accounts exist. They’re designed to provide business owners with the support, functionality and visibility they need to manage their business.

What’s the difference between a business bank account and a personal bank account?

Some key differences between personal and business bank accounts differentiate the two. Unlike your personal savings account, a business account has corporate account features like higher transaction limits, payroll, and merchant services.  It’s a dedicated space where your enterprise’s financial activities can be monitored, managed, and optimised for growth. 

Where personal bank accounts are typically no- or low-fee, business bank accounts will likely have fees attached. Due to the nature of the account, business bank accounts have higher daily spend limits, too. You’re not just paying for your groceries or paying off your credit card—you’re paying vendors and clients.

What’s the difference between a business account and a business bank account?

The difference between a business account and a business bank account is that the latter is provided by a financial institution that holds a banking licence, commonly known as banks.

A business account generally refers to an account and financial solution provided by a financial institution that does not hold a banking licence but does hold other regulated licences.

Many modern fintechs, like Airwallex or Wise, have opted not to become a bank. Airwallex is able to build a business account service that covers payment collection, treasury, transfers and payouts, invoicing, expense management and cards.

Can I open a business account (from a Fintech) alongside my business bank account?

Yes. Business accounts are great for getting started, borrowing and moving money domestically. Many businesses quickly realise the limitations and fees associated with their business account as they grow - especially internationally - and soon opt for fintech providers who offer purpose-built business solutions such as international payments, invoicing, company cards and expense management.

Do I need a business bank account?

In Singapore, almost all registered businesses, from small startups to large corporations, choose to open business bank accounts - or a specialised business account from a non-bank financial provider - to manage their finances.

Sole traders and freelancers, on the other hand, might opt not to open a business bank account if their business transactions are minimal or closely tied to personal finances. Even so, many of them will find that a business account or business bank account is a valuable way to simplify tax reporting and separate their personal and business finances for better financial clarity.

What are the benefits of a business bank account?

It’s not hard to see the benefits of a business account or business bank account for businesses.

• Efficient business management. A business account is designed to support your financial operations, with features like higher transaction limits, payroll transactions, and employee corporate cards. If you have helpful reporting tools, you can more accurately analyse your business’ activity and forecast figures for the next quarter.

• Clarity in accounting and tax reporting. A business account keeps your income and expenses neatly documented in one place. This streamlining is critical when filing your income taxes or if IRAS requests an audit.

• Ease of doing business globally. A business account simplifies the process of working with overseas suppliers or clients, with features like multi-currency accounts, foreign exchange services, and international wire transfers.  Some payment specialists like Airwallex let you open specialised local currency accounts so you can easily create a Chinese RMB account from Singapore or open a US account from Singapore. Airwallex Global Accounts come with local bank and branch codes and dedicated account numbers in your name that can be used to invoice customers. 

What should I look for in a business bank account?

Here are some key things to think about when comparing your choices of business accounts and business bank accounts, to help you find the best solution for your small business. It’s not exhaustive, but it can help make the process easier.

• Account fees. Have a look at the account fees and see if they match the service level offering. And keep in mind that some business accounts have a fee-free option.

• International fees and multi-currency support. As a growing business you might be doing business with international entities, so it’s important to find a provider that supports multiple currencies and offers competitive rates to send and receive money internationally.

• A strong global network. Some banks don’t have any branches in globally, so if you need to deal directly with that bank, make sure they have a partner bank or provider in the countries you wish to send money to.

• Does it have an online platform or portal? A comprehensive online business portal will make it much easier to manage your finances. Mobile apps let business owners view balances, make transactions, and manage cash flow from anywhere at any time.

• Credit facilities. You won’t always need overdraft facilities, but it’s comforting to know it’s there when you do.

• Account limits. Some business accounts limit the number of people able to use the account, so check this first.

• Merchant services. Accepting payments from credit cards, digital wallets, and other payment methods can enhance your business’s revenue across sales channels.

Top business bank providers in Singapore

Singapore's business financial services are led by top banks in Singapore like DBS, OCBC, UOB, and Maybank. These institutions carved out strong reputations by using traditional values and forward-thinking strategies to meet the needs of startups, SMEs, and multinational corporations. 

See how their business banking solutions and fees compare with the Airwallex Business Account.

Sources: Based on publicly available information from DBS SME Banking, DBS Business Account pricing, OCBC Business Growth Account, UOB eBusiness Account, UOB corporate banking fees, Maybank Flexibiz Account, Airwallex pricing as of 7 Feb 2024

DBS Business Multi-Currency Account 

The DBS Multi-Currency Account is a business checking account for SMEs who trade internationally. It lets you make transactions in SGD and 12 other currencies, and gives you the option to book FX contracts for more competitive rates. Account holders also get 50 free GIRO and FAST transfers per month. 

Newly incorporated businesses can also enjoy lower fees through the DBS Business Account Starter Bundle. On top of transacting in SGD and 12 currencies, it has no monthly service charges and unlimited free FAST and GIRO transactions (excluding bulk payments). 

OCBC Business Growth Account

The OCBC Business Growth Account is another low-cost legacy solution for Singapore-registered businesses. Compared to other OCBC accounts, they have the lowest initial deposit of just $1,000 and free FAST, GIRO, and PayNow transactions. The account also comes with one free debit card that rewards you with 1% cashback on all business expenses.  

Although the OCBC Business Growth Account is an SGD account, you can also open a Multi-Currency Business Account to support your business’s overseas operations.

UOB eBusiness Account 

Young entrepreneurs who prefer a legacy bank might be interested in the UOB eBusiness Account. Among all the UOB corporate banking options, the eBusiness Account has the lowest minimum daily balance (S$5,000) and lowest annual account fee (S$35). 

One notable benefit is the free FAST and GIRO transactions, which is helpful for businesses with high volume local transactions. UOB business internet banking also has a specialised SME app that lets you view the last 6 months’ transactions and gives insights on how to optimise your financials. 

Maybank FlexiBiz Account

If you want no-fuss small business banking, consider the Maybank Flexibiz Account. While it has the same minimum initial deposit requirements as the other business accounts, there’s no minimum balance or monthly account fee. 

The Maybank Flexibiz Account is also the only business account that offers interest on your balances. Though the rates are a modest 0.018% for the first SGD 50,000 and 0.038% for balances over SGD 500,000, it’s a small way your spare cash can work for you. 

Airwallex Business Account

For the SME who craves agility and growth beyond Singapore, the Airwallex Business Account can take you there faster. This full-featured financial platform managed by Airwallex (Singapore) Pte. Ltd. (‘Airwallex SG’), is licensed as a Major Payment Institution and is regulated by the Monetary Authority of Singapore (MAS). Airwallex SG accordingly adopts safeguarding measures for its customers’ monies. Airwallex has everything you need to reduce international transaction costs, exchange currencies at interbank rates, and automate your financial operations.

See how Airwallex supports SMEs in ways traditional banking can’t.

How to open a business account in Singapore

The business account opening process is straightforward and requires some preparation. Here's a general guide:

Who is authorised to open a business bank account in Singapore?

You can open a corporate bank account if you are:

1. A director of the company 

2. An authorised signatory at your company. They must be listed on the Board Resolution, according to your company’s constitution 

Prepare all documents required for a corporate bank account

Singapore banks require a range of documents to open a corporate account. These documents are necessary to verify your company’s validity, the identities of its company representatives, and to ensure compliance with Anti-Money Laundering (AML) regulations.

Here are the supporting documents you’ll need to prepare:

Certified True Copies of identification documents: 

• Company Business Profile from ACRA. This is the ACRA document that contains basic information about your business, such as your Unique Entity Number (UEN), date of incorporation, and business activities. 

• Passport/Singapore IC of the company directors, authorised signatories, and Ultimate Beneficiary Owners.

• Proof of Residential Address of the company directors, authorised signatories, and Ultimate Beneficiary Owners.

Certified True Copies of business registration documents:

• Certificate of Incorporation. This document certifies that a company is registered with ACRA in Singapore. 

• Board of Directors Resolution that sanctions the opening of the corporate account, to be prepared by your company secretary.

• Company’s Constitution. This is a legal document that outlines the rules and regulations on how the company will be managed. 

Other documents:

• Completed Corporate Account application forms, signed by the authorised signatories. Here’s an example of a business account application form with OCBC.

Opening an Airwallex business account requires documents and IDs too. However, the process is generally simpler than with corporate banks with no need for you to be physically present. Here’s are the supporting documents needed for opening a corporate bank account and opening a business account with a fintech such as Airwallex.

Note that the requirements can vary slightly from bank to bank, and additional documents may be requested based on your business activities or the structure of your company.

5 things to consider if you’re a small business opening a business account

With a business account, SMEs are positioned for efficiency, innovation, and resilience in a global market. Airwallex can help SMEs take on the world by supporting these needs:

• Fees. Small business accounts should have low or no monthly fees and should not charge penalties for not achieving minimum deposit thresholds. When cash flow is tight, every dollar counts and so this flexibility will enable your business to continue to use capital where it's needed most. While you’re evaluating fees, it’s also worth looking at overall value. It may be worth paying a little bit more for one centralised product or service, rather than several smaller fees for many. This could help you save money overall, and will also likely save you precious time - while avoiding frustrating tasks like manual data transfer.

• Scalability. It's also critical to find a small business account that will grow with you. As your business grows, so do your payment needs and their complexity. By opening a small business account that has features like international payments, online payment processing and card creation from day one, you save yourself countless hours of having to switch in a year or two when you've outgrown your current provider.

• Offers. Many financial providers are invested in seeing your business grow, so offer significant discounts to help you gain access to their services while your business is just getting started. Sometimes these are attached to certain types of accounts, and sometimes they are attached to a program - like Airwallex’s program for founders, Airwallex for Startups. Interested in learning more about our offer for Airwallex for Startups members? We’ve created an exclusive Airwallex package, designed to skyrocket startup growth.

• Visibility and transparency. When you’re running a small business – or any business – money is moving everywhere. Supplier and vendor payments, subscriptions, customer transactions, bills, employee expenses… The list goes on. As we mentioned before, you know that every dollar is critical. Founders should keep an eagle eye over their money movements, so a birds-eye, real-time view of money movement through your business account is absolutely essential.

Why open a business account with Airwallex?

If you think fintech is more suited to your business’s needs, look no further than the Airwallex all-in-one Business Account. It has the leading technology to help SMEs cut through global competition and achieve their growth targets. With its web and mobile app, entrepreneurs can manage their business anytime, anywhere.

Key features of the Airwallex business account

Overseas transfers

When it comes to international payments, Airwallex combines low costs with fast transfer times.  

Unlike traditional bank accounts, which rely on the SWIFT network for international transfers, Airwallex uses local payment rails on top of SWIFT, covering over 150+ countries. This means your foreign currency payouts are treated like local transfers. You don’t get charged international transfer fees, and funds arrive as quickly as 1 business day. 

Cost-effective currency conversion

When SMEs convert currencies through Airwallex, they get access to interbank exchange rates - the competitive rate at which banks trade currencies with each other. This ensures that businesses get the best possible rates, minimising the expenses related to converting currencies for international transactions.

Historically, only large corporations could access interbank rates through legacy business banks.  Today, access to these rates levels the playing field for small businesses and lets them compete more effectively in the global market.

Furthermore, Airwallex’s Global Accounts let SMEs hold, receive, and pay in 23+ foreign currencies. This means that when a business or SME receives customer payments in a local currency, they can use the same funds to pay a supplier in that currency, which avoids unnecessary conversion fees.

Integrated financial services that automate your workflow

On top of this, Airwallex has financial services like a payment gateway for SMEs diving into eCommerce, multi-currency corporate cards which are available as virtual and physical cards, batch transfers, expense management, and integrations with Xero. These features automate manual tasks and simplify your financial operations, so you can spend less time on admin and focus on strategic initiatives. 

No account maintenance fees

Airwallex won’t charge you account opening fees, or maintenance fees, or require a minimum maintaining balance. It’s a cost-effective and efficient solution for expanding your reach while simplifying your operations.

What do Singaporean businesses say about Airwallex’s Business Accounts?

Don’t just take our word for it. Discover how these Singapore businesses have used Airwallex to support their unique needs:

• How EU Holidays boosted profit margins with financial technology

• How Saturday Club sells globally from Singapore to Airwallex

Conclusion

Choosing a business account is critical for the success and scale of any SME. It should do more than streamline daily operations and help you cut costs. The right banking partner must align with your business’s growth trajectory and equip you with tools to get there.

In this context, Airwallex is a strategic choice for businesses poised for growth. By choosing Airwallex, you gain a partner that’s attuned to SMEs’ needs and offers technology to succeed in today’s fast-paced global marketplace.

Frequently asked questions

1. What qualifies as a business account?

A business account is a specialised banking account for companies of all sizes. It facilitates payments to suppliers, receipt of funds from customers, payroll, and other business-related financial activities. 

To open a business account, you need to submit your UEN, ACRA business profile, and identity documents of company directors.

2. Is a corporate account the same as a business account?

The terms "corporate account" and "business account" are used interchangeably to describe business banking. However, some banks in Singapore differentiate between the two. 

In such cases, corporate accounts are specifically designed for multinational corporations, offering a suite of services that cater to their complex, high-volume financial activities. Business accounts are tailored to meet the needs of SMEs, providing features that suit the simplicity of smaller operations. This distinction allows financial institutions to serve the varied needs of businesses across the spectrum.

3. Which bank is best for business accounts in Singapore?

The best bank for business accounts depends on your specific requirements. Legacy banks like DBS, OCBC, and UOB suit enterprises that need a physical presence and access to loans. If your business values traditional banking relationships, a conventional bank might be your best bet. 

SMEs that operate mostly online or in the global marketplace might find fintech platforms like Airwallex more appealing. Fintech platforms offer more competitive rates, have faster processes, and are built for ease of use.  If your business values digital efficiency, using fintech could be highly beneficial.

4. Do I need a business account as a sole proprietor?

Sole proprietors in Singapore are not required to open a business bank account. However, it is highly recommended. A business account helps you separate personal and business finances, simplifying accounting practices and giving you a clear view of your financial performance.

5. Can anyone open a business account?

No. You can only open a business account if you are a director of your company or an authorised signatory at your company. Additionally, this enterprise must be registered in Singapore. 

6. How much does it cost to open a business bank account in Singapore?

Minimum deposit fees range from SGD 0 - 1,000, depending on the bank. 

7. What is the difference between a personal and a business bank account in Singapore?

In Singapore, a personal bank account is for an individual's day-to-day financial transactions, such as receiving a salary, paying bills, and personal savings. In contrast, a business bank account is meant for a business entity’s financial operations, handling transactions like client payments, supplier invoices, and payroll. 

The key difference lies in their intended use. Business accounts have features suited to commercial activities, such as higher transaction limits and the ability to grant multiple users access, which personal accounts do not offer.

8. Should I link my personal bank account to my business account?

Linking your personal bank account to your business account can simplify cash flow management and simplify transfers across accounts. However, it's important to maintain a clear separation between your personal and business finances for accounting accuracy and tax purposes. Careful consideration should be given to ensure this doesn't compromise the clarity and integrity of your business’s financial records.

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.