For newly incorporated companies, right after setting up, they may think of open a bank account for their business operations and for accountability purposes. However, the opening of corporate bank accounts is not mandatories by Companies Act.
One may think which is the best choice of bank to open bank accounts in Singapore because there are so many banks is available in Singapore. Well, it may depend on your needs and preferences in choosing the bank. The bank charges and annual fees recurring will be huge in the long term for a business with huge volume of transactions and also depends on the business operations.
Table for the comparison for small business set up:
|Criteria / Bank||Maybank||DBS/ POSB||UOB||OCBC|
|Ranking in ASEAN - 2018||5th||1st||3rd||2nd|
|No. of branches in Singapore -2019||22||52/ 37||68||46|
|Monthly average||No||No||S$5,000||No for first 6 months, thereafter S$3,000|
|Fee||No||$18 monthly||$35 annually||$38 annually|
|Cheque Book||$0.50/ piece||S$25/ $0.75/ piece||$0.75/ piece||S$25/$0.75/ piece (First 30 free)|
|Over the Counter Fee||No||S$20||S$20||S$20|
|Internet Banking (FAST)|
|Account Type||Maybank FlexiBiz Account||Business Digital Account||UOB eBusiness Account||Business Growth Account|
According to the comparison, Maybank FlexiBiz Account is the best choice if cash flow is your main concern and you do not want your cash to tie up and it has neither monthly average cash balance to maintain nor any fee applicable. The only disadvantage here is the accessibility of the branch since it has lower branch coverage in Singapore compare to those in the table. With the emerging of online banking, people will less visit the branch for information or transaction, hence, these criteria will not weigh too much to most of the entrepreneurs. Another advantage is the over the counter transaction is free and the charges for the cheque is the lowest.
DBS/ POSB – Business Digital Account
DBS/ POSB – Business Digital Account has the advantage in terms of its wide branches’ coverage and accessibility because it has the greatest number of branches. While the rest of the other criteria is in favour of this account type, the only disadvantage is it will incur an $18 monthly fee. While the comparison is merely at the tangible quality which is the cash flow and cost, there is also intangible consideration such as bank reputation and service quality to take into consideration. The main purpose of account opening is for business operations, one may opt for the one which is the fittest for your business needs with your current resources. The right choice will benefit the company in term of cash flow for those who do not want their cash flow to tie up, cost-saving in the long run if the volume of transaction is huge and efficiency to do seamless transactions at ease.