Do I need a multi-currency account for my business?
A multi-currency bank account, also known as a foreign currency account, allows you to hold your money in one or more foreign currencies in addition to Singapore dollars. Here’s what you should think about before getting one.
1. Do I need a multi‐currency account for my business?
If your SME frequently carries out cross‐border transactions – whether it is receiving payments from overseas customers on a regular basis, or making payments in a different currency to an overseas vendor – a multi‐currency account could come in handy. A multi‐currency account allows you to hold your money in different foreign currencies all in one place, and use them interchangeably as needed.
2. How does a corporate multi‐currency account work?
Corporate multi‐currency accounts or foreign currency accounts, such as the DBS DBS Business Multi-currency Account, allows your business to transact in Singapore dollars and up to 12 foreign currencies. These include USD, AUD, CNH, HKD, GBP, EUR, JPY and more. You can activate and transact in several foreign currencies of your choice as long as you maintain an account balance of $10,000 and pay an annual fee of $40. Account holders who wish to transact in CNH need to fill in and submit a RMB Declaration Form as well.
3. What are the benefits of a multi‐currency account for my SME?
A foreign currency account will not only allow your business to send and receive cross‐border payments in different currencies, but also allow you to manage your foreign exchange costs better. For example, incoming foreign‐currency payments can be stored in your digital wallet until exchange rates are in your business’ favour. A multi‐currency account will also benefit SMEs which deal frequently with overseas suppliers and vendors as they can save on administrative and foreign exchange fees by using DBS’ online banking platform, DBS IDEAL. If you regularly trade in forex, it’s also worth checking out DBS FX Online, which provides a convenient platform to trade at competitive rates.
4. How do I open a multi‐currency account?
You can apply online for a DBS Corporate Multi‐Currency account. If you already have an existing DBS Business Account or Digital Account, you can convert it into a Corporate Multi‐Currency Account and keep your existing bank account number. You will need to fill in and submit a form to convert your SGD account to a multi‐ account.
Ready to open a multi‐currency account for your business? Apply for an account today.
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