Every business owner differs in needs and priorities. Because of this, you need to know the right considerations before committing to a bank and opening a new business account. In this article, we will discuss the basics you need to consider before this big business decision.
If you’re an entrepreneur who’s just learning how to start an online business in Singapore, reading this article will help you with bank considerations as you begin looking where to open your business account.
Fees, requirements, and fee flexibility. In general, banks charge maintenance fees for business accounts. Many banks will waive their fees if you meet a certain minimum balance requirement, while others make these requirements low to offer businesses fewer problems meeting them. In some cases, you can skip these requirements if you have a personal account at the bank in question.
With some accounts, transaction fees will apply for exceeding a certain allotment of transactions each month, and you may incur early termination fees if you close your account. Banks may also charge a flat fee if you withdraw from other institutions’ ATMs. Some banks will charge deposit fees when you exceed a set limit on the amount of money.
Introductory offers. Many banks offer introductory promos to entice business owners to open a business account with them. Some offers include bonus cash for an initial deposit of a certain sum or maintaining a certain balance for a certain period (typically a few months). Others may offer lower fees to businesses opening new accounts.
If your chosen bank’s features interest you, then that’s a good sign to open a business account with them. Don’t forget to check out the bank’s reputation and track record.
Personal requirements and preferences. For example, if you’re anticipating a significant number of business checking transactions monthly, consider only banks that can provide a checking account option with a high transaction limit.
Consider trade-offs. One example is a low-fee business account with a bank with no physical branch, which can be detrimental if you’re used to having in-person contact with banks’ customer service personnel or uncomfortable depositing funds online. Many online banks don’t accept cash deposits, so opening a business bank account at a bank with a physical location may be the way to go if you operate a business that processes many cash transactions.
Online Banking. We’re in a digital world, which means many business transactions now happen. Online banking lets you check your account activities as necessary. Checking balances, making transfers, accomplishing payments, and even printing account statements can be made on the fly through the bank’s online portal. Therefore, ensure your business account provides these features. Check out the bank’s mobile application, mobile banking, internet banking, and other features that can benefit your business.
Remember to consider fees, services, special offers, and your personal needs and preferences as you look for a bank for a business account. You can learn more about starting an online business in Singapore by visiting a bank website or heading over to the Enterprise Singapore portal.
Opening the account itself isn’t difficult. Log on to a bank’s website. You’ll need to upload certain documents and information to complete the process, which will vary depending on how your business is structured.