Business bank account comparison starts with one idea: the cheapest headline fee is rarely the cheapest account. A Singapore company should compare five things side by side. These are fees, minimum balances, local transfer tools, trade services and the quality of support. This guide shows how to score each one before you sign.
1. Fees and minimum balances
Start with the fee schedule, because every bank publishes one on its website. Look for a monthly or annual account fee, a fall-below fee, and charges for cheques, cash deposits and overseas transfers. A fall-below fee is charged when your average daily balance drops under the bank's minimum.
Minimum balances differ a lot. One large bank's published page for a multi-currency business account lists a minimum average daily balance of S$10,000 across all currency wallets. The same page lists a S$40 service charge when the balance falls below that level, and says the charge is waived under its Starter Bundle for new firms. So you must match the account to your cash habits.
Ask yourself a simple question. In your quietest month, will your balance stay above the minimum? If not, add the fall-below charge to your yearly cost. Banks also run starter bundles for young companies, so ask about those if your firm is new.
2. FAST and PayNow Corporate
Most of your day to day payments will be Singapore dollar transfers. Two tools matter here. FAST is the interbank system that moves Singapore dollars between participating banks within moments, at any hour. It launched in March 2014 and it cannot be used to send money overseas.
PayNow Corporate is the second tool. The Association of Banks in Singapore (ABS) made it available from 13 August 2018. It links your Unique Entity Number (UEN) to your Singapore bank account. A customer can then pay you using only your UEN, with no need for your bank name or account number. It was first offered by seven banks: Citibank, DBS Bank and POSB, HSBC, Maybank, OCBC, Standard Chartered and UOB.
Check three points with each bank. Does it support PayNow Corporate on your account type? Does it charge a fee per FAST or PayNow payment? What is the per transaction limit? Each bank sets its own fees and limits within the industry rules, so the answers differ.
3. Deposit protection
Safety belongs in any business bank account comparison. In Singapore, companies are among the depositors covered by the deposit insurance scheme. The cover is S$100,000 per depositor per scheme member. Accounts at different branches of the same bank are added together.
The scheme covers Singapore dollar deposits in standard savings, current and fixed deposit accounts. It does not cover foreign currency deposits, structured deposits or investment products. If most of your cash sits in a foreign currency wallet, that part has no insurance cover. Spreading large balances across two banks is one way some firms manage this limit.
4. Trade services
If you import or export, add trade services to your list. Ask whether the bank offers multi-currency accounts, foreign exchange at a stated rate, telegraphic transfers, letters of credit and trade financing. For each, ask for the fee in writing.
Look at the foreign exchange spread, not only the transfer fee. A low fee can hide a wide spread. Also ask how many days an overseas transfer usually takes, and whether the receiving bank may deduct charges on its side. These details decide your real cost when you pay a supplier abroad.
5. Support and digital tools
Support is hard to price but easy to test. Before you commit, call the business line and ask a plain question. Note how long you wait and whether the answer is clear. Ask who your contact is if a payment goes wrong, and whether there is a named relationship manager or only a general queue.
Then look at the online banking. Check that you can set approval rules for two or more signatories, download statements in a format your accountant can use, and set a low balance alert. The right tools save staff hours every month.
A simple scoring method
Put your shortlist of banks in a table. Score each of the five areas from 1 to 5, then weight the areas by how your firm works. A trading company may weight trade services highest. A service firm that receives local payments may weight PayNow Corporate and FAST highest.
Add up the weighted scores, then compare the total with your expected yearly cost. Use real figures from the published fee schedule and your own monthly transaction counts. Review the choice each year, because fees and products change.
This article is general information, not financial advice. Confirm every fee and term with the bank before you open an account.