Yes. The OCBC Business Growth Account is designed as an all‑in‑one solution, offering full transactional capabilities for your day‑to‑day business needs. When you opt in to the interest‑earning promotion, you can also earn tiered interest on eligible SGD balances above S$50,000, while continuing to use the same account^.
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Business savings vs operating account
Business savings vs operating account
For many businesses, choosing a business account is not just about where money comes in and goes out. It is also about how efficiently cash is managed between daily operations and reserve funds that could be earning a return.
What is a business operating account?
A business operating account, or current account, serves as the core hub for your company’s day-to-day financial activities. It is designed for high-volume transactions such as receiving customer payments via PayNow or FAST, paying suppliers through GIRO, managing payroll, and handling regular expenses.
Key features typically include:
● High transaction limits and free quotas.
● Business debit card access with cashback.
● Seamless integration with accounting software and digital business banking platforms.
● Full liquidity for immediate fund access.
However, operating accounts usually offer zero or negligible interest. For many SMEs, this means thousands in surplus cash sit idle, generating no returns while still incurring potential monthly fees if balances fall too low. While essential for operations, relying solely on an operating account can represent a missed opportunity for financial growth.
What is a business savings account?
A business savings account is designed to help companies earn returns on funds that are not immediately needed for day-to-day operations. Unlike an operating account, which prioritises transaction volume and accessibility, a savings account focuses on helping businesses grow surplus cash over time.
Businesses commonly use savings accounts to hold:
• Emergency reserves
• Funds earmarked for future expansion
• Excess cash generated from operations
Many business savings solutions pay interest on deposited funds, although access to the funds and interest rates can vary. Some savings accounts allow withdrawals at any time, while others require notice periods or balance commitments.
Another common savings option is a business fixed deposit account, where funds are placed with the bank for a pre-agreed period in exchange for a fixed interest rate. Fixed deposits often offer higher returns than regular savings accounts but typically come with lock-in periods and penalties for early withdrawal.
Head-to-head comparison: Business operating account vs Business savings account
Here’s a practical breakdown:
What about an interest-bearing operating account?
Many SMEs do not necessarily want separate operating and savings accounts.
They want a single account that allows them to:
• Manage daily transactions
• Maintain liquidity
• Earn returns on surplus balances
This is where interest-bearing operating accounts can provide an alternative.
An interest-bearing operating account combines the functionality of a business operating account with the ability to earn interest on qualifying balances.
This can help businesses make idle cash more productive without moving funds between multiple accounts.
With OCBC’s Business Growth Account, for instance, you can activate an interest-earning option through an interest rate promotion^ with this tiered structure (p.a., calculated daily and credited monthly):
● First S$50,000: 0%
● Next S$100,000 (S$50,001 – S$150,000): 0.30%
● Balances above S$150,000 (up to S$1 million): 0.50%
There is no lock-in period, and your money remains fully accessible for business needs. This setup directly addresses a common SME challenge: making idle cash productive without sacrificing flexibility.
For businesses with USD balances
While the Business Growth Account helps you earn interest on your SGD operating balances, the same interest‑earning option is also available for businesses holding US Dollar (USD) funds.
With the OCBC Multi‑Currency Business Account, you can earn tiered interest on eligible USD balances above US$150,000^, while continuing to use the account for day‑to‑day transactions with no lock‑in and full accessibility.
This allows businesses that deal in multiple currencies, such as those with overseas suppliers or USD revenue streams, to optimise both SGD and USD balances, ensuring that cash in different currencies is working as efficiently as possible.
Making idle cash work harder: Illustrative outcomes
The difference between holding cash in a non‑interest account and earning interest on your business account can add up over time.
The examples below illustrate potential annual returns, assuming a consistent daily end‑of‑day balance at the stated amount throughout the year, with interest applied on a tiered basis.
Scenario 1: S$120,000 maintained balance (Business Growth Account with interest rate promotion^)
In a standard non-interest account: S$0 earned.
In the Business Growth Account:
• First S$50,000 at 0%: S$0
• Remaining S$70,000 at 0.30%: approximately S$210 per year
Annual return: approximately S$210
Scenario 2: S$300,000 maintained balance (Business Growth Account with interest rate promotion^)
In the Business Growth Account:
• First S$50,000 at 0%: S$0
• Next S$100,000 at 0.30%: S$300
• Remaining S$150,000 at 0.50%: S$750
Annual return: approximately S$1,050
Important note
Interest is calculated daily based on end‑of‑day balances and credited monthly. Actual interest earned may vary depending on daily balance fluctuations.
If you have opted in to the interest rate promotion, a higher minimum balance of S$50,000 applies, and a fall‑below fee of S$50 may be charged if the required monthly average balance is not met^.
Choosing the right strategy for your business
Most SMEs benefit from using both types of business accounts strategically:
1. Maintain an operating account for high-frequency transactions.
2. Activate or open an interest-earning feature/account for surplus funds above your operational minimum.
3. Schedule regular cash sweeps (manual or automated) to maximise interest without compromising liquidity.
4. Monitor average monthly balances to avoid fall-below fees.
Business stage matters. Startups with irregular cash flow may prioritise transaction flexibility, while scaling SMEs with retained profits gain the most from interest bearing business accounts. Always align your choice with your projected cash reserves and transaction volume.
Singapore-registered businesses can open accounts like the OCBC Business Growth Account easily, often with low initial deposits and digital options for eligible applicants.
Disclaimer
*Insured up to S$100k by SDIC.
^Terms and conditions apply.
You may be directed to third party websites. OCBC Bank shall not be liable for any loss suffered or incurred by any party for accessing such third party websites or in relation to any product and/or service provided by any provider under such third party websites.
The information provided herein is intended for general circulation and/or discussion purposes only. Before making any decision, please seek independent advice from professional advisors. No representation or warranty whatsoever in respect of any information provided herein is given by OCBC Bank and it should not be relied upon as such. OCBC Bank does not undertake any obligation to update the information or to correct any inaccuracy that may become apparent at a later time. All information presented is subject to change without notice. OCBC Bank shall not be responsible or liable for any loss or damage whatsoever arising directly or indirectly howsoever in connection with or as a result of any person acting on any information provided herein. Any reference to any specific company, financial product or asset class in whatever way is used for illustrative purposes only and does not constitute a recommendation on the same.
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FAQS
Common questions
Can I use one account for both daily transactions and saving?
Is there a minimum balance to start earning interest?
Yes. When you opt in to the interest rate promotion^, interest applies to balances above S$50,000, based on a tiered structure. Balances below this threshold earn 0%.
If I already have an existing OCBC business account, can I open another account (subsequent account) for my business?
Yes, you can open a subsequent account via OCBC Velocity to serve your business needs such as receiving of funds in different currency or segregating of transactions for better financials management.
Will my funds be locked in if I opt-in to the interest rate promotion?
No. The interest rate promotion has no lock-in period, your funds remain fully accessible for payroll, supplier payments, or any business need at any time.
How often is interest calculated and paid?
Interest is calculated daily based on your end-of-day balance and credited to your account monthly.
What happens if my balance drops below the interest threshold?
You simply earn 0% on that portion until your balance returns above the threshold.
How can I activate interest-earning for my business account?
You can activate the interest-earning during the online application process for an OCBC Business Growth Account by selecting the interest rate promotion^.
Can I earn interest on different currencies?
Yes. You can earn interest on your Singapore Dollar (SGD) balances in your OCBC Business Growth Account and on your US Dollar (USD) balances in your OCBC Multi-Currency Business Account^.