Malaysia Hotline: +603- 2141 8908
Singapore
bank account opening is a very popular choice for global investors to do
business there. Singapore is a very popular choice with foreign investors
looking to open an offshore bank account. It’s a safe and stable country with a
very solid financial system, while all account servicing is conducted in
English. Most importantly, it’s extremely easy for non-residents to open a bank
account in Singapore. Most institutions welcome non-resident customers of all
sizes.
Singapore bank account
opening--choose a bank
The
first thing to do is pick a bank. There are about 30 major banks operating in
Singapore, both local and foreign. But it makes sense to look at the three
local banks first. These are DBS (which includes the Post Office Savings Bank
or POSB), Oversea-Chinese Banking Corporation (OCBC) and Union Overseas Bank
(UOB).
The main
reason to go with one of these three is that if you decide to open a stock
broking account as well, they will offer quicker, easier and cheaper transfers
between your bank account and your broking account via the Electronic Payment
for Shares (EPS) system. Citibank also offers this facility, but other foreign
banks currently don’t.
In
addition, if you plan to be visiting Singapore and using your account locally,
the local banks have the most extensive ATM and branch networks. Of the three,
OCBC probably stands out as the best choice. The most compelling reason is that
it offers one of the two most comprehensive stock broking services in Singapore
and having your bank and brokerage account together means that transfers
between the two are fully automated. Foreign investors usually speak highly of
its customer service, especially at the flagship Chulia Street branch.
If you
currently bank with a global bank such as HSBC or Citibank, they will often
have a presence in Singapore. However, do not assume that moving money between
your home account and your Singapore account necessarily be simpler or cheaper
even if you keep both accounts with the same firm. Some banks are improving
their global integration, but most remain remarkably bad at it. Check the
details carefully if you decide you want to look at opening a Singapore account
with your current bank.
Singapore bank account
opening--conditions for non-resident bank accounts
The
conditions for non-resident bank accounts are pretty much the same between all
the banks – or were when last checked for this article. You cannot open a
current account with a chequing service or a debit or credit card, but you can
open a savings account. You can transfer money in and out of this easily and
you can also have an ATM card that can be used at cash points in Singapore and
abroad. Obviously, you will usually be subject to fees when using cash points
abroad.
There
are no account fees as long as you keep a minimum account balance – typically
S$1,000. Personal internet banking came as standard and was completely free
with all banks. In addition to Singapore dollar savings accounts, you should
also be able to open term deposits for a higher interest rate. Foreign currency
deposits are also available for most major international currencies.
To open
an account in person, you will need to go to one of the bank’s customer service
centres. You do not need to book an appointment – just turn up, take a ticket
and wait your turn. As a visitor, it makes sense to go to the financial
district, where all three local banks have a branch very close to the Raffles
Place MRT. DBS is on Malacca Street, while OCBC and UOB are on Chulia Street.
Most other major banks also have a branch in the same area.
You will
need your passport as proof of identity, plus a proof of address (for example a
bank statement or utility bill). You may also require either a letter of
reference from your bank abroad or an introduction from a current accountholder
at the bank you have chosen. Reportedly, some of the global banks also want
proof of your taxpayer number or national insurance number in your home
country, although the local banks have not asked for this in the past.
Obviously,
before you travel to Singapore, you should check with the bank that the rules
haven’t changed and no further information or documents are needed. You will
also need the minimum balance (typically S$1,000) to pay into your account. If
your ATM card works abroad, you could withdraw this from an ATM in Singapore,
otherwise change cash in advance.
There
are no capital controls in Singapore. But you have to make a customs
declaration if you are bringing more than S$30,000 in cash or bearer
instruments into the country. In any case, doing an electronic transfer
subsequently for large amounts usually makes more sense than carrying it on
your person. And that’s essentially it. You will be assigned an account
representative, complete the forms and pay in your deposit. With most, you will
be given an ATM card on the spot. Statements will be sent to your home address
abroad.
If
visiting Singapore in person is out of the question, you may be able to open an
account by post, depending on which bank you plan to use. You will need to
check with the bank exactly what they require, but it will involve having the
forms and a copy of your passport verified by a lawyer or notary in your home
country.
Banks
that have branches in your home country will sometimes help you open overseas
accounts. So if you are unable to visit Singapore, this may be the one reason
to use a global bank such as Citibank or HSBC. Doing this is clearly more
paperwork and bank staff definitely expresses a preference for opening accounts
in person if possible. Recent reports from investors have been contradictory on
whether any of the three local banks will allow accounts to be opened by post.
Singapore bank account
opening--Paying in funds from abroad
When you
want to pay more funds into your Singapore account, you can do so by
international transfer. Your bank will give you its SWIFT number and all the
details you need to quote and you provide those when arranging the transfer. You
should be able to do this from your home bank account via your bank. But you
may get a better exchange rate and lower fees by using a specialist currency
transfer service, as discussed in this article.
A
transfer will typically take 3-10 days to arrive depending on how efficient the
firm handling the transfer is. Singaporean banks using make a small charge on
receiving a money transfer. The typical fee is S$10. To withdraw small amounts
from your account, you could of course use your ATM card. For larger amounts,
your Singapore bank will be able to arrange a transfer out to your home
account. Again, you will be charged for this. And again, you could look at
using a currency transfer firm (among the ones listed in the article above,
Tannet has operations in Singapore) to see if they will do it more cheaply.
Singapore bank account
opening--safety of your money
Singapore
has a very stable and well-regulated financial system. Banks are regulated and
monitored by the Monetary Authority of Singapore (MAS), the country’s central
bank. In terms of depositor protection, Singapore dollar deposits in a full
bank are insured up to a limit of S$50,000 by the Singapore Deposit Insurance
Corporation (SDIC). Note that foreign currency deposits are not insured.
The
three local banks are extremely solid. Only one is partly state-owned: DBS, via
sovereign wealth fund Temasek. But it seems highly unlikely that the government
would allow any of them to fail with significant losses for account holders
even beyond the SDIC limits. The same support would perhaps not be extended to
local arms of non-Singaporean banks, so if you are concerned about this, it
provides another reason to choose the local banks. For what it’s worth these
days, Singapore’s government has the top AAA credit rating from all major
ratings agencies. Perhaps more relevantly, it has a long track record of
prudent and conservative fiscal policies.
Contact
us
If
you have further queries, please contact Tannet
24
hours Malaysia hotline：603-21418908;
24
hours Hong Kong hotline：852-27837818;
24
hours Hong Kong hotline：86-755-
36990589;
Email:
mytannet@gmail.com
TANNET GROUP : http://www.tannet-group.net, http://en.tannet.com.my