How New Businesses Can Reduce Payment Costs in Singapore
Supplier invoices and regular operating expenses can generate dozens of outgoing payments each month. Keeping business payment costs in Singapore manageable starts with understanding transaction charges, account fees, and balance requirements.
For new business owners, reviewing payment volumes and comparing annual costs can reveal opportunities to save. DBS supports frequent local payments through its Business Multi-Currency Account – Starter Bundle, making it a relevant option to assess alongside other accounts based on the transactions a business makes and the charges that apply.
Understand What Makes Up Your Business Payment Costs
Three components make up business banking fees:
- Account fees are fixed monthly or yearly charges for maintaining the account.
- Transaction charges apply to payments according to the account’s pricing and any free allowance.
- Service charges may apply when the average balance falls below a specified threshold.
For local transfers, distinguish Fast and Secure Transfers (FAST) from General Interbank Recurring Order (GIRO). Each payment type can have its own allowance and transaction rate.
Payment speed and pricing are separate considerations. The Association of Banks in Singapore (ABS) explains, “FAST enables almost immediate receipt of funds.” Its July 2026 guidance also states that “fees and charges are based on commercial decisions,” so providers set their own pricing.
The amount you transfer and the number of transfers are therefore separate inputs when assessing what your banking arrangements cost.
Four Ways to Keep Everyday Payment Costs Down
Use a worksheet with one row per month and separate columns for payment types, balances, charges, and rebates.
Count Your Payments in Regular and Busy Months
Download three months of transaction history and separate outgoing FAST payments from GIRO payments. If your company has recently started trading, use supplier agreements and expected invoice schedules to estimate activity.
Record the number of transactions, their timing, and the payment channel used. A business making several small supplier payments can have different transaction costs from one settling a few larger invoices, even when both transfer the same total amount.
Check Which Payments Qualify for Free Transfers
Match the transactions you recorded to the account’s eligibility rules. Check whether the allowance applies through a particular banking platform and whether individual payments, bulk files, and payroll receive different treatment.
For an account offering rebates, confirm the qualifying transactions and when credits reach the account. Keep supplier deadlines in view when choosing a payment method, since processing times also affect when funds arrive.
Review Balance Requirements Against Your Cash Flow
Compare the required average balance with the cash you expect to hold throughout the month. Your balance immediately after receiving customer payments may differ considerably from the amount remaining after supplier invoices are settled.
An opening deposit funds the account at the outset, while an ongoing balance requirement determines whether a service charge applies. Set aside sufficient cash for upcoming commitments and include any likely service charges in your budget.
Calculate the Annual Cost and Review It Regularly
Build a monthly estimate using account fees, chargeable payments, and applicable service charges, then deduct qualifying rebates. Project each month separately when activity is seasonal, and add the results for an annual estimate.
Review the calculation after adding suppliers, increasing order frequency, or changing payment processes. Separate introductory benefits from ongoing pricing so you can assess costs during the opening year and subsequent years.
Include any account closure or setup charges if your review leads you to consider switching.
Compare FAST and GIRO Charges Across Business Accounts
A new business making 150 FAST and 150 GIRO payments each month completes 3,600 transactions a year. The comparison below applies this payment pattern to the DBS Business Multi-Currency Account – Starter Bundle, OCBC Business Growth with a multi-currency account (MCA), and UOB eBusiness.
The figures use standard recurring account fees and assume qualifying individual transfers through each bank’s digital platform. Monthly service charges are modelled at S$0 for all three accounts, with the relevant balance requirements maintained.
| Cost / value item | DBS Business Multi-Currency Account – Starter Bundle | OCBC Business Growth + MCA | UOB eBusiness |
| Account fees | S$10/monthly | S$10/monthly | S$35/yearly |
| Monthly service charge | S$0 | S$20 if below S$1,000 | S$15 if below S$5,000 |
| Free FAST/GIRO allowance | Unlimited, worth S$1,260/year | 80 FAST + 80 GIRO, worth S$672/year | 60 FAST + 60 GIRO rebate, worth S$504/year |
| Cost saving | Winner | DBS saves S$588/year | DBS saves S$671/year |
The annual totals behind the savings are S$120 for DBS, S$708 for OCBC, and S$791 for UOB. These combine account fees with payments above the stated allowances, after applicable transaction rebates. The allowance values represent modelled transaction benefits, while the cost saving row compares each account’s net annual cost.
For the equal FAST and GIRO mix shown, S$0.35 represents the blended transaction value used in the reference model. Published chargeable rates at OCBC and UOB are S$0.50 for FAST and S$0.20 for GIRO.
The comparison measures ongoing costs. OCBC’s introductory two-month account fee waiver brings its illustrated opening-year total to S$688 and the corresponding DBS saving to S$568, with the remaining assumptions unchanged.
UOB’s balance-related service charge is waived for the account opening month and subsequent 11 months. DBS’s free FAST and GIRO allowance applies through DBS IDEAL, while bulk payments and payroll follow standard pricing.
Why DBS Suits Businesses Making Frequent Local Transfers
DBS is the strongest fit among these three accounts for an eligible business in its first three years making the illustrated volume of local payments. The practical advantage is that additional qualifying transfers remain free as transaction activity increases, making the payment component easier to budget.
The Starter Bundle also carries a S$0 monthly service charge at any balance. This gives owners flexibility to use available cash for operating commitments while the S$10 monthly account fee remains predictable.
When assessing business accounts for startups, match these benefits to your actual payment process. DBS’s unlimited free FAST and GIRO payments apply through DBS IDEAL, while bulk payments and payroll follow standard pricing.
For businesses paying suppliers through eligible individual transfers, this combination directly supports the objective of controlling recurring payment expenses.
Frequently Asked Questions
Which month does a scheduled payment count towards?
The applicable month depends on your bank’s counting rules. OCBC bases its bundled transaction count on the transaction date. For payments scheduled around month-end, check which date the bank records and allow for processing times when estimating usage.
Do GIRO collections affect my free transaction allowance?
Yes, where the bank combines GIRO payments and collections within one allowance. Both OCBC and UOB use this structure, so incoming collections can affect the allowance available for outgoing payments. Include both transaction types when checking monthly usage.
For example, 20 collections against an 80-transaction allowance leave room for 60 qualifying payments.
What should I update when moving business payments to another account?
Update saved beneficiaries, scheduled transfers, payment approvals, and account details held by customers or billing organisations, then reconnect your accounting software to the new account. Confirm that replacement arrangements are active and pending transactions have cleared before closing the previous account. Retain statements and payment records for reconciliation.
What happens to the DBS Business Multi-Currency Account – Starter Bundle when my business turns three?
DBS transitions the Starter Bundle to its standard Business Multi-Currency Account and contacts customers ahead of the change. Use that notice to confirm the incoming fee structure and adjust your payment budget before the new account terms take effect.
Choose Your First Business Account With Confidence
Put your findings into practice by choosing an account that fits the way your business pays suppliers. Keeping business payment costs in Singapore under regular review helps preserve more of your operating budget as transaction needs change.
Explore the DBS Business Multi-Currency Account – Starter Bundle to check your eligibility, review the applicable payment terms, and decide whether its fee structure suits your day-to-day operating needs.
