California is a hub of innovation and entrepreneurship, with businesses playing a crucial role in the state’s economy. For these businesses to thrive, having a reliable banking partner is essential. There is a wide range of financial institutions in California that offer unique products and services tailored to the needs of businesses. In this comprehensive guide, we will explore the best banks for businesses in California, highlighting their key features, pros and cons, fees, interest rates, minimum balance requirements, and access to mobile banking.
Table of Contents
● Our Methodology ●Bluevine: Overall Best Bank for Businesses in California ● Lili Bank: Best User-Friendly Business Account ● Wells Fargo: A Trusted Name in Business Banking ● Bank of America: Best Bank for Small Businesses in California ● Chase: Best Bank for Businesses in California for Its Lines of Credit ● Citibank: Best Bank for Businesses in California for Its High-Level Financial Services ● PNC Bank: Best Bank for Businesses in California for Its Regional Focus ● Mechanics Bank: Best Bank for Businesses in California for Personalized Service ● Our Methodology for Selecting the Best Business Banks in Texas ● Frequently Asked Questions on Best Business Banks in Texas ● Bottom Line
The Best Business Banks in California
Bluevine: Overall Best Bank for Businesses in California
$2.50 for out-of-network ATMs, $5 for international ATMs, and $5 for card replacement.
None
$0
Mobile check deposit, expense categorization, and real-time transaction tracking.
Wells Fargo
$10
$25 for account management $75 for optimization $0.50 per transaction exceeding 100 0.3% fee on cash deposits beyond the limit $5.0 for intentional withdrawal
0.03 – 0.05 APY depending on the type of account
$500 – $1000
Pay bills, transfer funds, deposit checks
Bank of America
$16
$16 service fee
Up to 0.04% APY
$5,000
Deposit checks, transfer money, pay bills, and manage other financial activities.
Chase
$15
Up to $40 for wire transfer. $0.40 fee on every transaction after the first free 20 ones
None
$2,000 to avoid monthly fee
Yes. Users can manage their accounts, make transactions, and access customer
Citibank
$25 – $30
Varies depending on account type
0.01% APY
$10,000 – $30,000 to avoid monthly fees.
Transfer funds and access a range of banking services from mobile devices on the go
PNC Bank
$12
$36 for overdraft fees
Up to 0.01% APY
$500 average daily balance or $1,000 average ledger balance
Manage accounts, transfer funds, and make payments on the go.
Mechanics Bank
$10 – $30 (waivable)
$2.50 for out-of-atm network usage, $10 – $30 for domestic wire transfer fees, and $10 – $40 for international wire transfer fees.
N/A
$3,000
Yes. Businesses can easily manage their accounts, make transfers, and access other banking services on the go.
Our Methodology
When choosing the top banks for businesses in California, we evaluated factors like monthly account maintenance fees and potential hurdles to your business.
Our thorough analysis included minimum balance requirements, centering on banks that offer rates in the state.
Additionally, our selections covered banks with advanced mobile apps and user-friendly systems, ensuring a comprehensive and convenient banking experience.
Bluevine: Overall Best Bank for Businesses in California
Bluevine is a popular choice among businesses in California, offering a secure online banking system and flexible financing options. The bank provides long-term loans and credits with reasonable interest rates and friendly repayment structures. Bluevine stands out for its high-interest rates, minimal fees, and lack of maintenance requirements. However, they do not offer a business savings account and charge a fee for cash deposits.
Why we chose it: Bluevine offers competitive interest rates, minimal fees, and a lack of maintenance requirements, making it the best business bank account for LLCs or other business types.
Pros
High-interest rates.
Very few fees.
No minimum deposit is required.
Cons
No business savings account.
Fee for cash deposits.
Fees
Bluevine has no monthly fees, allowing businesses to bank without incurring charges. However, they do charge $2.50 for using out-of-network ATMs and $4.95 for cash deposits.
Interest Rates
Bluevine offers an impressive 2.0% APY, 50 times the current national average. This rate applies to balances up to $100,000. Beyond this amount, additional funds do not accrue any interest.
Minimum Balance
Bluevine does not have a minimum balance requirement, making it accessible to businesses of all sizes.
Access to Mobile Banking
Bluevine provides a user-friendly mobile app that allows businesses to manage their accounts, make transfers, and deposit checks on the go.
Lili Bank: Best User-Friendly Business Account
Lili Bank offers an all-in-one, user-friendly business checking account designed to meet the needs of freelancers and business owners. With Lili, managing your funds and financial transactions is easy and convenient. The bank’s online checking account allows you to manage your taxes, make payments, and carry out other business transactions with just a few clicks. Lili Bank stands out for its no fees, no minimum deposit requirements, and integrated tools for managing expenses and planning for taxes.
Why we chose it: Lili’s minimal fees and tax optimization software help businesses retain their hard-earned income, making it an excellent choice for freelancers and business owners.
Pros
There are no fees or minimum balance requirements.
Unlimited fee-free transactions.
Fee-free ATM access through the MoneyPass network.
Cons
Fee for cash deposits.
No checkbooks or wire transfers.
Limited business-related features.
Fees
Lili does not charge any fees or require a minimum balance. However, they charge a fee for cash deposits made at Green Dot locations plus $2.50 for out-of-network ATMs, $5 for international ATMs, and $5 for card replacement.
Interest Rates
Lili’s Business Checking account does not earn interest. However, they offer a savings account with a competitive interest rate of 1.5% APY, requiring a minimum balance of $34,000 to offset the monthly cost.
Minimum Balance
Lili does not have a minimum balance requirement for their checking account, making it suitable for businesses with fluctuating income.
Access to Mobile Banking
Lili’s mobile banking app is specifically designed for freelancers and business owners, providing easy access to manage finances, control expenses, and save money for taxes.
Wells Fargo: A Trusted Name in Business Banking
Wells Fargo is a well-known and trusted name in the banking industry, offering a wide range of products and services for businesses in California. With branch locations throughout the state, Wells Fargo provides convenient access and excellent customer service. The bank offers business checking accounts, savings accounts, credit cards, loans, and other financial products tailored to meet the needs of companies. Wells Fargo’s extensive network and comprehensive offerings make it a reliable choice for businesses of all sizes.
Why we chose it: Wells Fargo is a trusted bank with a comprehensive suite of services, making it a top choice for businesses looking for a full-service financial institution.
Pros
Extensive branch network.
Wide range of financial services.
Access to credit card accounts, transfer money, deposit checks, and access bank statements through mobile banking.
Cons
Fees for certain transactions.
Relatively low interest rates.
Minimum balance requirements for certain accounts.
Fees
Opening a Wells Fargo checking account involves a $10 monthly fee. For enhanced management, a $25 fee is applied, and further optimization incurs a $75 fee.
Non-Wells Fargo ATM usage costs $2.50 per withdrawal, balance inquiry, or funds transfer, with international withdrawals incurring a $5.00 fee and international purchases subject to a 3% fee.
Exceeding 100 free transactions results in an extra $0.50 charge per transaction. Depositing cash beyond the limit carries a 0.3% processing fee, and in-person or mailed deposits come with a $2.50 charge.
In addition, the direct pay option adds a $10 monthly cost, and each additional Optimize Business Checking account is priced at $30.
Outgoing domestic wire transfers cost $30, incoming domestic ones are $15, and incoming international ones are $16.
Interest Rates
Wells Fargo offers interest rates on their savings accounts, but the rates are relatively low, at 0.03% – 0.05% APY, compared to online banks and credit unions.
Minimum Balance
Wells Fargo has minimum balance requirements for certain accounts, and the specific amounts vary depending on the type of account. The Initiate Business Checking account requires a minimum daily balance of $500 to waive the $10 monthly service fee, whereas the Navigate Business Checking account has a mandatory $10,000 minimum daily balance to avoid the $25 monthly service fee.
Access to Mobile Banking
Wells Fargo provides a robust mobile banking app that allows businesses to manage their accounts, make payments, and deposit checks conveniently from their mobile devices.
Bank of America: Best Bank for Small Businesses in California
Bank of America is one of the largest banks in the United States and offers a range of products and services for small businesses in California. With branch locations across the state, Bank of America provides accessibility and convenience.
The bank stands out for its payment services, including merchant services and fraud prevention tools. Bank of America also offers cash management solutions and cash flow management tools to help businesses grow and secure their finances. The competitive interest rates and the variety of banking options it provides make Bank of America a top choice for businesses in California.
Why We Chose It
Bank of America stands out for small businesses in California for its comprehensive payment services. The bank provides seamless options for businesses to accept credit and debit card payments, making it easier for customers to pay for goods and services. Additionally, Bank of America offers fraud prevention tools and cash management solutions to help grow and secure your business.
Pros
Extensive branch network for easy access.
Offers a variety of payment services and cash management solutions.
Provides fraud prevention tools to protect your business.
Cons
Monthly fees may apply, depending on the type of account.
Limited interest rates on savings accounts.
Additional fees for certain transactions and services.
Fees
Bank of America charges a monthly fee of $16 for its introductory checking account. However, this fee can be waived by maintaining an average monthly balance of $5,000. In addition, there may be fees for out-of-network ATM withdrawals and charges for excessive deposits in a given month.
Interest Rates
While Bank of America’s checking accounts do not offer interest rates, the bank provides savings accounts with a maximum interest rate of up to 0.04%. These rates can be increased by participating in Bank of America’s rewards program.
Minimum Balance
To avoid the $16 monthly service fee, businesses are required to maintain at least a $5,000 average monthly balance in their checking account. Savings accounts, on the other hand, have a minimum balance requirement of $2,500 to avoid a monthly charge.
Access to Mobile Banking
Bank of America’s mobile app is highly rated and provides a convenient way for business owners to manage their accounts on the go. The app allows users to deposit checks, transfer funds, pay bills, and access other banking services from their mobile devices.
Chase: Best Bank for Businesses in California for Its Lines of Credit
Chase is another prominent bank in California, offering a wide range of financial services for businesses. The bank is known for its lines of credit and lending options, making it an excellent choice for businesses needing extra funds. Chase provides specialized merchant services for restaurants, retailers, and service providers, helping businesses streamline payment processes. With over 20,000 ATMs and 4,300 branches nationwide, Chase offers convenience and accessibility for businesses in California.
Why We Chose It
Chase is one of the top banks for businesses in California for its lines of credit. The bank offers a variety of lending options to suit the needs of different businesses, providing access to funds for growth and expansion. Whether you need a business line of credit, a term loan, or a commercial mortgage, Chase has options to support your business’s financial needs.
Pros
Extensive branch network for easy access.
Offers a variety of lending options, including lines of credit.
Provides a range of banking products and services for businesses.
Cons
Limited number of free transactions at basic checking level.
ATM fees are not reimbursed.
Savings interest rates are relatively low.
Fees
Chase’s entry-level account, Business Complete Banking, has a $15 monthly fee. However, this fee can be waived by maintaining an average balance of $2,000 or more in the account. Additional fees may apply for certain transactions and services, such as an overdraft fee of $3.
Interest Rates
Chase does not offer interest rates on its checking accounts. However, the bank provides competitive rates on its lending products, such as lines of credit and business loans.
Minimum Balance
To avoid the $15 monthly service fee, businesses are required to maintain an average balance of at least $2,000 in their Business Complete Banking account. There is no minimum balance requirement for Chase’s other checking accounts.
Access to Mobile Banking
Chase’s mobile banking app allows business owners to manage their accounts, deposit checks, transfer funds, and access various banking services from their mobile devices. The app provides a convenient way to stay on top of your finances, even on the go.
Citibank: Best Bank for Businesses in California for Its High-Level Financial Services
Citibank is a top choice for businesses in California seeking high-level financial services. The bank offers flexible loan options, competitive rates, and repayment structures tailored to meet the needs of businesses. Citibank stands out for its specialized merchant services, cash management solutions, and fraud prevention tools. With branches in major economic regions of California, Citibank provides local support and expertise to help businesses thrive.
Why We Chose It
Citibank stands out as one of the best banks for businesses in California for its high-level financial services. The bank offers a variety of lending options, specialized merchant services, and rewards programs to help businesses thrive. With a commitment to customer satisfaction, Citibank provides tailored solutions for businesses of all sizes.
Pros
Extensive branch network for easy access.
Offers high-level financial services, including specialized merchant services.
Provides a range of lending options to support business growth.
Cons
No free business checking account.
Limited branch locations in California.
Savings interest rates are relatively low.
Fees
Citibank offers a variety of business checking accounts, each with its own fee structure.
The Citibank Account has a Monthly Service Fee of $25, which is waived if you maintain a combined average monthly balance of $10,000 in eligible linked retirement and investment accounts.
The Citi Priority checking account includes investment guidance from Citi Personal Wealth Management. The Monthly Service Fee is $30 for linked accounts unless you maintain at least a $30,000 balance
Lastly, the Citigold Account Package requires a minimum of $800,000 in combined assets in eligible accounts to remain in the package.
Interest Rates
While interest rates on Citibank’s checking accounts are relatively low at 0.01% APY for balances below $10,000, the bank provides a range of lending options with competitive rates. Businesses needing loans or lines of credit can explore the interest rates offered by Citibank to find the best solution for their financial needs.
Minimum Balance
Citibank has no specific minimum balance requirement for its business checking accounts. However, maintaining at least a $10,000 balance is necessary to avoid the monthly fees of $25 and $30,000 to avoid the monthly fee of $30 associated with the Citibank Account and Citi Priority account, respectively.
Access to Mobile Banking
Citibank offers a mobile banking app that allows business owners to manage their accounts, transfer funds, and access a range of banking services from their mobile devices. The app provides a convenient way to stay connected to your business finances on the go.
PNC Bank: Best Bank for Businesses in California for Its Regional Focus
PNC Bank is a regional bank with a strong presence in California, offering a range of banking products for businesses. The bank provides business checking accounts, lending options, credit cards, and other financial services tailored to meet the needs of businesses in the region. PNC Bank stands out for its focus on customer satisfaction and personalized service. With competitive rates and a commitment to supporting local businesses, PNC Bank is a trusted partner for businesses in California.
Why We Chose It
PNC Bank stands out for businesses in California due to its excellent financial services and customer-centric approach. They have a strong reputation for providing high-level financial services, making them an ideal partner for businesses of all sizes.
Pros
PNC Bank offers a wide range of business checking accounts with different features and benefits to suit the needs of various businesses.
Their lending options, including lines of credit and term loans, give businesses the financial flexibility they need to grow and succeed.
PNC Bank has a user-friendly mobile banking app allows businesses to manage their accounts, transfer funds, and make payments on the go.
Cons
PNC Bank charges fees for some services, such as wire transfers and overdrafts. These fees can add up for businesses with high transaction volumes.
The interest rates offered by PNC Bank on their business accounts are relatively low compared to some other banks.
PNC Bank has physical branch locations in 28 states, which may limit business access outside these areas.
Fees
PNC Bank charges a monthly service fee of $12 for their Initiate Business Checking account. This fee can be waived by maintaining a minimum daily balance of $500 or an average ledger balance of $1,000. Other fees may apply for services overdrafts.
Interest Rates
PNC Bank offers an interest rate of up to 0.01% APY on their Initiate Business Checking account. While this rate may not be the highest in the market, it allows businesses to earn some interest on their account balances.
Minimum Balance
To avoid the monthly service fee for the Initiate Business Checking account, businesses need to maintain a minimum daily balance of $500 or an average ledger balance of $1,000.
Access to Mobile Banking
PNC Bank provides businesses with convenient access to mobile banking through its user-friendly mobile app. With the app, businesses can easily manage their accounts, transfer funds, and make payments on the go.
Mechanics Bank: Best Bank for Businesses in California for Personalized Service
Mechanics Bank is a community bank that serves the Central Coast region of California, offering personalized service and a range of banking products for businesses. The bank provides business checking accounts, savings accounts, lending options, and cash management solutions. Mechanics Bank stands out for its commitment to the local community and its focus on building long-term customer relationships. Mechanics Bank strongly emphasizes customer service and is an excellent choice for businesses in the Central Coast region.
Why We Chose It
Mechanics Bank is another top choice for businesses in California due to its excellent customer service and commitment to supporting local businesses. They have a deep understanding of the unique challenges faced by businesses and offer tailored solutions to meet their financial needs.
Pros
Mechanics Bank offers various business checking accounts to suit the specific needs of different businesses, providing flexibility and choice.
Their lending options, including business loans and equipment financing, help businesses access the capital they need to grow.
Mechanics Bank strongly focuses on customer service, providing personalized support and guidance to help businesses succeed.
Cons
Mechanics Bank has a limited physical presence outside of the Central Coast region, which may limit access for businesses in other California areas.
The interest rates offered by Mechanics Bank on their business accounts may not be as competitive as some other banks.
Some additional fees may apply for certain services, such as wire transfers and out-of-network ATM usage.
Fees
To open an account, you need a deposit of $100. Mechanics Bank has three different business accounts. Smart Business Checking gives you 150 free monthly transactions, lets you deposit up to $5,000 in cash, and you can skip the $10 monthly fee.
If you go for Preferred Business Checking, you get 300 transactions without fees, can deposit up to $10,000 in cash, and the $15 monthly fee is avoidable by keeping a certain balance or being part of a nonprofit. With Prime Business Checking, you get a whopping 500 free monthly transactions, up to $20,000 in cash deposits, and you can dodge the $30 monthly fee.
Plus, you get a $50 discount on your first set of checks, and they’ll give back the fees for incoming wires. Opt for Business Interest Checking if you want 300 transactions, a $10,000 cash deposit, plus interest earnings.
Interest Rates
Mechanics Bank is not specific about its interest rates, but you can earn interest by opening a Business Money Market checking account. The interest is made daily and compounded monthly on balances over $1.
Minimum Balance
To avoid the $10 monthly fee for the basic account and Smart Business Checking account, you need to maintain a minimum balance of $3,000.
Access to Mobile Banking
Mechanics Bank provides businesses with convenient access to mobile banking through their mobile app. With the app, businesses can easily manage their accounts, make transfers, and access other banking services on the go.
Our Methodology for Choosing the Best Business Banks in California
Fee Assessment
We carefully analyzed the fee structures of each bank, looking into account opening fees, monthly maintenance charges, transaction fees, and any additional costs tied to services like wire transfers or ATM usage.
Interest Rate Evaluation
The interest rates offered by banks were a pivotal factor in our assessment. We scrutinized the Annual Percentage Yield (APY) across various account types to ensure businesses can garner competitive returns on their balances.
Minimum Balance Analysis
We assessed the minimum balance requirements set by banks to evade monthly service fees. Our understanding of these thresholds enabled us to recommend options aligning with the financial needs of businesses in California.
Mobile Banking Accessibility
We evaluated the functionality, user-friendliness, and features of each bank’s mobile app, ensuring businesses enjoy convenient and secure access to their accounts while on the move.
Overall Ease of Use
Beyond mobile banking, we considered the overall user experience. This encompassed the ease of navigating online platforms, availability of customer support, and accessibility of essential banking services, contributing to a seamless experience for businesses in California.
When choosing a bank for your business in California, consider factors such as the types of accounts and services offered, fees, interest rates, convenience, and customer service. Ensure the bank offers the accounts and services you need, has competitive interest rates, and provides convenient ways to manage your accounts. Additionally, consider the bank’s customer service reputation and how accessible its branches and support options are.
Yes, you can use multiple banks for your business banking needs. Using multiple banks can allow you to take advantage of different strengths and offerings. For example, one bank may offer competitive CD rates, while another may provide convenient in-person branch access. Using multiple banks can help you diversify your financial relationships and optimize your banking experience.
Online banks offer several benefits for businesses in California, including competitive interest rates, lower fees, and convenient digital banking tools. Online banks often have lower overhead costs than traditional banks, allowing them to offer higher interest rates and fewer fees. Additionally, online banking tools make it easy to manage your accounts, make payments, and access financial information from anywhere, at any time.
Bottom Line
Choosing the best bank for your business in California is a crucial decision that can impact your financial success. With various options available, it’s essential to consider factors such as accounts and services, fees, interest rates, convenience, and customer service. Bluevine, Lili Bank, Wells Fargo, Bank of America, Chase, Citibank, PNC Bank, and Mechanics Bank are all top choices for businesses in California, each offering unique strengths and advantages. By carefully evaluating your business needs and comparing the offerings of these banks, you can find the perfect banking partner to support your financial goals.
Alexander Sterling is a renowned financial writer with over 10 years in the finance sector. With a strong economics background, he simplifies complex financial topics for a wide audience. Alexander contributes to top financial platforms and is working on his first book to promote financial independence.
Judith Harvey is a seasoned finance editor with over two decades of experience in the financial journalism industry. Her analytical skills and keen insight into market trends quickly made her a sought-after expert in financial reporting.
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Alexander Sterling
