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Humanising Finance
September 2017
     

Opening a business bank account - What to consider?

If you are starting a business or planning to do so, one of the first things you have to consider is opening a business bank account.

Most company owners tend to choose the bank they are most familiar with. However, this may not be the best choice as the product features, including fees and charges, vary across different banks.

Read the fine print to help you select the right account for your business needs, as it will be a major hassle to switch to another bank, once your company's operations are up and running.

Here are five types of fees/charges that you should take note of when you are considering the different options in the market.
 
 
1. Account-related fees
It may come as a surprise to you that most business bank accounts have either a monthly or annual account fee, which can add up to almost S$500 a year. Whilst some banks may indicate that there is no annual fee, there is instead a monthly fee component.
 
Another type of fee which some banks impose is the subscription fee to their Business Internet Banking. You should take note of the charges imposed so that there will not be any unpleasant surprises.
 
 
2. Fall-below fee
The most common grouse of business owners is the fall-below fee charged by the bank. Most banks charge S$35 per month if you do not maintain a minimum balance in the account, which can range from S$3,000 to S$30,000.
 
You should consider how much your average account balance will likely be, and select the appropriate bank for your business account, to avoid such a charge, which can be up to S$50 a month.
 
3. Cheque-related charges
For business current accounts, most banks will offer the first cheque book free and charge S$25 for subsequent cheque books. On top of that, there is also a clearing fee of S$0.50 per cheque after the first 30 cheques are utilised.

If your company uses a lot of cheques for payment, this can add up to be quite a significant amount.
   
4. Over-the-counter fee
Most business owners are not aware that many banks charge a S$20 service fee per transaction performed at bank branches. However, at Maybank, we do not impose such charges for business account transactions done at any of our 21 branches island-wide.

In addition, we offer Maybank Business Internet Banking (BIB), which is a complimentary service to help you run your business more efficiently. Using our BIB, you can transfer funds to other banks via FAST, at a nominal fee of only S$1 per transaction.
 
5. SMS notification fee
It's helpful to receive SMS notifications for transactions performed online via BIB, as these provide timely updates for efficient and smooth operations. While some banks only offer it free for the first three months and subsequently charge up to S$35 per month, Maybank BIB customers can enjoy this service on a complimentary basis.
 
 
With Maybank Business Accounts, discover unparalleled flexibility and value-added features to meet your business needs.

Our Maybank Flexibiz has no account or any-fall below fee, while Maybank Premierbiz offers high interest and unlimited free cheque usage. All our accounts offer free SMS and email notifications and there is also no service charge for over-the-counter transactions.

Find out how our SME Banking solutions can help you fulfil your ambitions. Get in touch via our Business Banking hotline 1800-777 0022 or request a call back via this online form.

Insured up to S$50k by SDIC
 
Always wanted to find out more about a finance-related issue? Email us at: corporateaffairs@maybank.com.sg
 
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