Businesses can manage multiple currencies with only one multi-currency account, which allows them to make transactions worldwide smoothly and save big money on currency conversion fees.
This is the era of global connectivity. According to Flow’s global research report, more than 60% of online buyers prefer to purchase products from another country. As a business grows and enters new markets, it has to handle financial transactions in multiple currencies. This also happens when you are running a business within Singapore but have vendors or customers in other countries.
Opening separate bank accounts in those countries and maintaining a balance in each of them can drain your finances and make it challenging to manage multiple accounts. A multi-currency account or foreign currency account is the solution to these challenges.
In this article, we will share all the crucial information you need to know about multi-currency accounts and tell you how this versatile account can expand your operations and simplify your finances. Let’s dive into the details!
What is a Multi-currency Account?
A multi-currency account, also known as a foreign currency account, is a type of account that allows businesses and individuals to effectively manage, transact, and store in multiple currencies within a single account. The primary purpose of the multi-currency account is to facilitate the process of international transactions for account holders.
Additionally, it helps you avoid costly and fluctuating conversion rates. You can convert the currencies whenever you want to and benefit from lower exchange rates. Traditional banks like HSBC and Citibank and fintech companies like Fazz Business offer multi-currency accounts to meet the diverse needs of individuals and businesses.
Benefits of Multi-Currency Accounts for Businesses
A multi-currency account is highly useful for businesses that pay or receive money internationally, buy or sell products in multiple locations beyond the border, or have global vendors or workforce. Here are the benefits of a multi-currency bank account for businesses.
- It enables you to send or receive payments across the world hassle-free using one account and tracking foreign transactions. You can create sub-accounts for multiple currencies in one multi-currency account.
- The conversion cost is cheaper. You can save good money on foreign exchange fees with lower charges on each transaction.
- The transactions are processed instantly within minutes, which helps build better business relationships.
- Some multi-currency account providers offer debit cards.
How to Open a Multi-currency Account in Singapore?
Opening a multi-currency account requires documents and personal information similar to those required to open any other bank account, which makes it straightforward. Depending on the bank or financial institution you choose, you can open an account online or visit a branch to set up your multi-currency account.
If you choose to open an account offline, you have to visit a branch, fill out account opening forms, submit the required documents, and initial deposit. However, if you already have an account with the institution, the account opening process becomes easier.
Moreover, creating an account online is more straightforward than creating an offline one. To open a multi-currency account online in Singapore, you have to register online using an email and submit personal details and other necessary documents. After verification, your multi-currency account will be live and ready to use.
The documents needed to open a multi-currency account depend on your chosen traditional bank or fintech company. Typically, you should prepare all the legal documents that prove you run a business entity.
Here is the basic information required to open a multi-currency account in Singapore.
- Personal information
- Proof of address
- Proof of identity documents: Government-issued NRIC, passport
- Company certificate
- Social Security Number
- Initial deposit in cash form or via debit card and your bank account details
It is important to check the eligibility criteria and required documents on the bank’s official website.
Find out more about How to Open a Business Account in Singapore!
Best Multi-currency Accounts in Singapore
Being a financial hub, Singapore offers the best multi-currency account options that can help you elevate your business game in finance. You should compare multiple multi-currency account service providers and choose the one whose features and services align with your business needs. Here’s a list of the best multi-currency accounts in Singapore that you can consider.
OCBC offers a multi-currency account that allows you to trade in 13 currencies, which include major currencies like USD, AUD, CAD, and EUR. The bank offers a “business growth account” with no initial deposit and minimum balance requirements. However, for a “business entrepreneur account plus,” you need to maintain a minimum balance of SGD 30,000. It allows users to quickly deposit foreign currencies and easily visualize cash flow.
HSBC Everyday Global Account
HSBC is one of the popular banks in Singapore that offers multi-currency accounts with both personal and business options. The HSBC Everyday Global account is best to use for business purposes. The account lets you convert multiple foreign currencies at your preferred exchange rate and make transactions around the world. HSBC’s multi-currency account supports 11 currencies, and you can make free spending and withdrawals in ten of them. Additionally, the account required a minimum initial deposit of SGD 100 or currency equivalent.
YouTrip is a digital wallet that allows you to hold and exchange 10 currencies and transact in 150 different currencies. With a YouTrip multi-currency account, you can track your balance and transaction information. You can withdraw cash from all Mastercard ATMs in foreign countries. The account requires no initial deposit and minimum balance. Moreover, you can reload your wallet balance through any credit or debit card.
Fazz Business is one of the leading fintech companies offering a hassle-free multi-currency account that allows free local transfers in USD and SGD. With a Fazz Business multi-currency account, you can transfer funds in 50+ currencies, including all major currencies like USD, SGD, AUD, CAD, EUR, and many more. Our business account comes with unique tools tailored for fast-growing startups and SMEs across Southeast Asia.
Unlike traditional banks, there is no minimum balance, fall-below fees, subscription fees, or hidden bank fees. The best part about our multi-currency account is that it offers multiple agile finance management tools so that you can always stay on top of your expenses. So, open a multi-currency account with Fazz Business and make borderless payments at cheaper foreign exchange rates than banks.
How to Open a Multi-Currency Business Account with Fazz Business?
The process of opening a multi-currency business account with Fazz Business is simple and hassle-free. You can instantly open your account online on a website in a few steps and start making cross-border payments smoothly.
Here are the required items for creating a multi-currency account with Fazz Business:
- Personal information (Your full name, company ID, contact number, and date of birth)
- Completed account opening form
- Identification proof documents: NRIC or passport
- Proof of Residential Address
- Detailed Company Information
- Business Registration Documents
Open a Fazz Multi-currency Account today to enjoy borderless payments with the cheapest FX fees, limitless virtual cards, and financial tools to manage your business operations efficiently!