Even while running a business might seem simple at first, there are often subtleties involved that might be difficult. Thus, it is essential to practice careful financial management after registering your business. As such, one of the crucial things after business registration is to set up a bank account for your firm. Setting up a
bank account promotes efficient operations, and easier financial administration, and keeps personal and business finances distinct.
If you have registered a business in Singapore, you must also consider establishing a bank account. The majority of banks in Singapore provide alluring incentives, including credit cards, international money transfers without restrictions, multi-currency accounts, trade finance, and more.
If you are a foreigner looking to set up a bank account then this article is for you. This article will cover the best banks in Singapore for foreigners.
Basic Banking Services Needed by Foreigners and Expatriates in Singapore
If you’re a non-resident, your banking needs will differ significantly from the needs of a citizen or a permanent resident. For one thing, you would need to send back remittances to your home country. So, you would need a bank that can make that transfer painless.
Listed below are the basic banking services that foreign individuals in Singapore would need on a continuous basis:
- Presence both in your home country and Singapore
- ATM and Savings Deposit services in both Singapore and your home country
- Low fees for both international and domestic transfers
- Low minimum balance requirements and low penalties
- Higher interest rates on Savings accounts
- Ask if your account allows you multi-currency deposits and withdrawals for travel or other urgent transfers
- Other convenience features, such as 24 by 7 branches, overdrafts, credit cards, multiple transfer options, club memberships, etc.
Singapore's Financial Structure
Singapore’s banking system is designed to accommodate a range of banks and financial organizations.
These are the main categories of banks in Singapore’s financial system:
- Local Banks: Singapore has six local banks, such as Bank Of Singapore Limited, DBS Bank LTD, etc.
- International Banks: To access Singapore’s financial sector and provide for its clients, numerous foreign banks have set up branches in the jurisdiction. These banks coexist with local banks in Singapore and add to its overall banking environment. At the moment, Singapore is home to 119 foreign commercial banks.
- Merchant Banks: Merchant banks are specialized banks with an emphasis on offering business financing and advising services in Singapore.
- Offshore Banks: Singapore serves as a significant center for offshore banking operations. Offering services to foreigners and overseas businesses, offshore banks frequently concentrate on wealth management, tax planning, and asset protection.
- Wholesale Banks: These banks prioritize serving corporate customers, institutional investors, and other financial organizations. Approximately 54 wholesale banks are present in Singapore.
Documents Required for Foreign Individuals Opening a Bank Account in Singapore
The following document list is meant for online bank account opening applications and is only valid for Singapore citizens, PRs, Employment/S-Pass holders, Students on a visa, Entre pass holders, etc. Further the information here is valid at the time of writing and may be subject to change periodically.
- Identity Card/Employment Pass/S Pass/Student Visa/Entre Pass
- Address of Residence, either local or overseas – the latter address to be accepted on a temporary basis till you find a local address and inform the bank through their digital platform.
- Employment proof: Work passes issued by Singapore’s Ministry of Manpower usually suffice as proof of employment.
Best Local Banks in Singapore
1. DBS (Development Bank of Singapore)
- With 50+ years of heritage behind them and S$ 646 billion in total assets, DBS is easily one of Singapore’s largest and most recognizable banks.
- DBS has a presence in some of the biggest markets globally, including Los Angeles, London, Beijing, Mumbai, Penang, Jakarta, Seoul, and many others.
- This bank is known for its paperless account opening and digital services at very economical rates.
- At the time of writing, DBS had 250 branches globally, while it claimed to have the largest network of ATMs in Singapore.
2. OCBC (Overseas-Chinese Banking Corporation)
- OCBC is one of the oldest and largest banks in Southeast Asia.
- Owns 570+ branches in 18 regions and countries worldwide.
- It has a major presence in Malaysia, Indonesia, Singapore, and China.
- OCBC has successful interests in Singapore’s insurance and capital markets and serves personal banking customers as well as small to medium-sized businesses.
- OCBC (Overseas-Chinese Banking Corporation) offers a debit card that provides customers with the benefit of no foreign currency transaction fees and a zero-dollar fall below fee. These features enhance the convenience and cost-effectiveness of using the OCBC debit card for international transactions.
Note: After you register your business in Singapore with OnDemand International, we can help you open an account with OCBC bank.
3. UOB (United Overseas Bank)
- 3rd largest bank in Singapore.
- UOB has seen its asset portfolio grow consistently in recent years with a steady cost-to-income ratio.
- This bank currently has 68 branches in Singapore alone and has marked its presence in 19 countries worldwide, including Australia, the UK, the US, India, & Canada, apart from almost all of Singapore’s neighbors and India.
- Known for its strong service support to SMEs.
- It has over 500 offices across 19 countries worldwide
- It also grants users up to 2.5 percent interest per annum
4. MayBank
- Southeast Asia’s 4th largest bank in terms of assets.
- 2600 branches in 18 countries that include all 10 ASEAN members.
- Currently, this Malaysian-origin bank also has 18 branches, 4 exclusive wealth centers, one high-end lounge, and 12 self-owned ATMs. It partners with local qualifying ATM networks which give you further access to 200+ ATMs across Singapore.
Foreign Banks
1. Standard Chartered Bank
- Standard Chartered, with origins in the UK, has been a major player in Singapore since 1859.
- Part of a global banking group, its Singapore HQ offers one of the most diverse portfolios of products and services in the industry.
- Presently has 12 branches and 25 ATMs in Singapore with 4 Priority Service branches and 1 high-end International Banking & Priority Service branch.
- Custodian banker of choice for foreign institutions in Singapore having won numerous international banking awards.
2. CitiBank
- CitiBank was one of the first American banks to open shop in Singapore.
- As one of the largest banks in the world, it has access to deep funding and is already a formidable competitor in the Republic.
- CitiBank requires foreigners to submit an authorized ID and proof of residence along with their bank account application.
- If you do not have a SingPass (a login software that stores your personal identifier info for engagement with the Singapore government) you must either apply for one or visit a Singapore branch of CitiBank to have your account opened.
3. HSBC
- Like Standard Chartered, HSBC opened a shop in Singapore in the second half of the 19th century.
- Is an authorized Primary Dealer of G-secs, and other foreign corporate bonds in Singapore.
- This bank is also part of an international group with branches in several countries including India, the US, the UK, Australia, and many others.
- Branch visits are necessary for account opening at HSBC Singapore.
Time taken to open a bank account for a Foreigner
For most banks, it takes between 3 to 7 working days to have a fully functional bank account opened.
DBS commits to 3 business days. However, SingPass holders may be eligible for instant account opening.
Banking Services Comparison
Note that the information given here has been taken from the official websites of each of the banks concerned and were current at the time of writing. However, they may be subject to change and human error. These figures may be taken as reference only for the purpose of choosing the best banks for foreigners in Singapore.
Singapore has strict laws prohibiting money-laundering
In Singapore, there are immutable banking secrecy laws and account holders are not required to report funds available to the authorities regularly.
However, the Corruption, Drug Trafficking, and Other Serious Crimes (Confiscation of Benefits) Act of 1999 (CDSA) makes it a punishable offence to engage in such acts.
Singapore banks are required to monitor and find suspicious transactions and unverified sources of income or wealth deposited with them. However, the Singapore authorities will not punish you if the source of your funds are not from a list of 184 criminal activities elaborated in the Act mentioned above.
Note that Singapore police can detain, arrest, or charge you for these 184 offences even if they are committed overseas.
Conclusion
If you’re planning to launch a business as a foreigner and want to visit Singapore occasionally, you may want to open a bank account in a bank that also serves your home country.
Although it might seem that familiar banks in your home country are more suitable, there might be conditions involved because of regulations in Singapore.
It is best to seek assistance from professional experts from OnDemand International to help you in the documentation process of opening a corporate bank in Singapore. Get in touch with us today.
FAQ’s
Yes. Foreigners are allowed to open a Singaporean bank account provided they have valid documents to be in Singapore. For example, Singapore Employment Pass holders, EntrePass holders, and Student pass holders.
Yes. While Singapore citizens are required to quote their NRIC or PR Visa numbers, non-residents must provide more comprehensive proof of residence, passport copies, phone bills, other bank statements, etc.
Banks typically ask an opening deposit that ranges from $5 to $1,000 to get things started. Others need no upfront payment, while others charge a monthly maintenance fee.
Not at the moment. You may apply for the SingPass ( a digital authentication system that stores and shares your personal information such as address, passport number, contact details, and other traceable information. A SingPass may allow you to open a bank account faster with some banks.
In Singapore, opening a corporate bank account is a rather easy and straightforward process. However, given that data verification is neither feasible nor easily accessible, that might not be the case for a foreign-owned business or individual.
