In this guide, we chose 10 of the best small business banks in California. The best for your business should offer a great business checking account to go with outstanding business products and services.
Many of the banks on our list have physical locations in multiple economic regions, and most providers allow you to open accounts from anywhere, even if you’re not near a branch.
Here are the 10 best banks for small businesses in California, each spotlighting an economic region of the state, with links directly to the bank’s websites:
- Featured bank in California Statewide: U.S. Bank Member Federal Deposit Insurance Corp. (FDIC)
- Featured bank in Southern California: BMO Member FDIC (formerly Bank of the West)
- Featured bank in the Bay Area: Bank of America Member FDIC
- Featured bank in Southern Border: Chase Member FDIC
- Featured bank in San Joaquin Valley: Citibank Member FDIC
- Featured bank in Central Sierra: PNC Bank Member FDIC
- Featured bank in Northern Sacramento Valley: Wells Fargo Member FDIC
- Featured bank in Central Coast: Mechanics Bank Member FDIC
- Featured bank in Greater Sacramento: California Bank & Trust Member FDIC
- Featured bank in Northern California: Westamerica Bank Member FDIC
In each section, we also include a list of other business banks in that economic region, with a link to our review of the bank.
In addition to the banks above that have physical branch locations in the state of California, there are financial technology companies (fintechs) that provide outstanding business banking products that are available nationwide. Those providers are listed below, with links directly to the provider websites:
- Bluevine Provider is a fintech platform backed by and FDIC-insured through a supporting bank partnership with Coastal Community Bank. : Best overall fintech for interest-earning account with best line of credit and international payments
- Relay Provider is a fintech platform backed by and FDIC-insured through supporting bank partnerships with Evolve Bank & Trust and Thread Bank. : Best for businesses that need multiple accounts and debit cards
- Mercury Provider is a fintech platform backed by and FDIC-insured through supporting bank partnerships with Choice Financial Group and Evolve Bank & Trust. : Best for tech companies and startups
- Found Provider is a fintech platform backed by and FDIC-insured through a supporting bank partnership with Piermont Bank. : Best digital-only provider for self-employed professionals
For a complete list of the online-only business banking providers, see our buyer’s guide to the best online business banks.
Earn 4.25% APY with Bluevine Premier and 2.0% APY for Bluevine Standard on qualifying balances. |
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Economic Regions of California
The drop-down menu below lets you choose your region to go directly to that section of this guide. If you’re unsure of the region where your business is located, you can use our map of California’s economic regions by clicking on the header below.
Best Banks for Small Business in California At a Glance
Featured Location* | Account Name | Monthly Fee | Free Monthly Transaction Limit | Free Monthly Cash Deposit Limit | |
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California Statewide | Silver Business Checking | None | 125 | $2,500 | |
Southern California | Simple Business Checking | $10; waivable | 100 | $2,000 | |
Bay Area | Fundamentals Business Checking | $16; waivable | 200 | $7,500 | |
Southern Border | Business Complete Banking | $15; waivable | 20 | $5,000 | |
San Joaquin Valley | Streamlined Checking | $15; waivable | 250 | $10,000 | |
Central Sierra | Business Checking | $12; waivable | 150 | $5,000 | |
Northern Sacramento Valley | Initiate Business Checking | $10; waivable | 100 | $5,000 | |
Central Coast | Smart Business Checking | $10; waivable | 150 | $5,000 | |
Greater Sacramento | Business Growth Checking | $15; waivable | 250 | $15,000 | |
Northern California | Regular Checking | $12; waivable | 100 | Unspecified | |
*These banks may have branches outside this region. Check the individual sections below for a map of all regions with a branch. Also, many providers will allow you to open an account online. Check out our individual bank reviews, which are linked below, for more information. |
California Statewide Business Bank: U.S. Bank
What We Like
- No monthly fee
- Easily waived monthly fee on three checking options
- Built-in point-of-sale (POS) options
Drawbacks
- Expensive wire fees
- Limited free transaction
- Opening deposit required
- Send and receive money through app
- Digital invoicing and payment systems integrated into your online dashboard
- Mobile app to monitor all of your accounts, transfer funds between accounts, and deposit checks online
- Easy integration with overdraft protection or credit card processing services for your business
- Free debit card and 50% discount on first check order up to $50
- Integrations with QuickBooks and U.S. Bank Payment Processing
- Customer service online, by phone, or in-branch during business hours
- Other products include lending and cash flow products, other checking options, and POS services
Required Opening Deposit | $100 |
Required Balance Minimum | None |
Transaction Limit Before Fees | 125 in a month, then 50 cents per transaction |
ACH Fees | None |
Monthly Fees | None |
Domestic Wire Transfer Fees | Incoming: $14 Outgoing: $40; $35 for voice wire |
International Wire Fees | Incoming: $16 Outgoing: $75 |
ATM Fees | No charge for out-of-network ATMs, although operator fees apply |
Cash Deposited | $2,500 in cash deposits or 25 free cash deposits per cycle, whichever comes first |
APY | N/A |
When To Choose U.S. Bank
No matter where your business is located in California, there is a U.S. Bank branch located somewhere nearby. With no monthly fees and up to 125 free transactions monthly, U.S. Bank is a great option for California businesses. While you can visit a branch location to open a business bank account, you can also do so online.
In addition to the free monthly transactions, you also get up to $2,500 in free cash deposits monthly with the bank’s Silver Business Checking account. If you regularly exceed those monthly transactions, you can switch to a higher-tier account. There are waivable monthly fees for the Gold and Platinum Business Checking accounts, but both allow more free transactions and other perks.
You can also earn an $800 bonus when opening a new U.S. Bank business checking account online (promo code: Q2AFL24) and completing qualifying activities, subject to certain terms and limitations—offer valid through August 30, 2024. Member FDIC. See our article on the best bank account promos and offers for details on how to qualify.
Also, U.S. Bank has an excellent mobile app with 4.7 out of 5 stars in Google Play and 4.8 out of 5 stars in App Store.
We recommend five other traditional banks with locations in all 10 economic regions of the state, which are listed in the box below. In addition, we have included five financial technology (fintech) companies with online-only business checking accounts.
Other Business Banks in California Statewide | |
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Southern California Business Bank: BMO (formerly Bank of the West)
What We Like
- Easily waivable monthly fees
- Variety of business checking account options
- Now more than 1,000 branches in 32 states
Drawbacks
- No APY except for highest tier (BMO Elite Business Checking)
- Low free cash deposit limits
- Bank of the West customers may see account terms change with transition
- Free debit Mastercard
- Digital banking
- Unlimited incoming wire transfers (BMO Digital Business Checking and BMO Elite Business Checking)
- Unlimited automated clearing house (ACH) credits (BMO Digital Business Checking)
- BMO Elite Business Checking relationship packages
- Specialty business checking accounts
- Robust lending options, such as Small Business Administration (SBA) loans, lines of credit, equipment leasing, real estate lending, and specialty financing
- Discounted payroll services through Business Online Payroll® and Paychex
Required Opening Deposit | $100 |
Required Balance Minimum | None |
Transaction Limit Before Fees | 100 per month, then 40 cents per transaction |
Monthly Fees | $10, waived with average collected balance of $100 or more |
Domestic Wire Transfer Fees | Incoming: $15 Outgoing: $30 |
International Wire Transfer Fees | Incoming: $15 Outgoing: $50 |
ATM Fees | None at BMO and Allpoint ATMs, $3 for non-BMO ATMs plus operator fees |
Cash Deposited | $2,000 per month free, then 25 cents per $100 |
APY | N/A |
On Sept. 5, 2023, Bank of the West completed its planned transition to BMO (formerly BMO Harris).
When To Choose BMO
Bank of the West had provided banking services to California since being founded as the Farmers National Gold Bank of San Jose back in 1874. With the Bank of the West acquisition, BMO has branch locations in all but one of California’s economic regions and over 1,000 branches in 32 states.
BMO has two entry-level business checking accounts. BMO Simple Business Checking allows up to 100 transactions and $2,000 in cash deposits for free each month. The $10 monthly fee is easily waivable with an average collected balance of $100 or more each statement period.
The company also offers BMO Digital Business Checking with unlimited ACH transactions and incoming wire transfers. You get up to $1,000 in free cash deposits monthly, and the $10 monthly fee can be waived by having an average collected balance of $500 or more each month.
The bank also offers two higher-tier accounts, which come with more free transactions each month. Both have higher monthly fees with higher thresholds to waive those fees.
While some of the account terms may change from what Bank of the West offered, BMO is another outstanding full-service bank that can meet your business needs as your company grows. Its Android app is rated 4.5 out of 5 based on over 25,000 reviews on Google Play. Meanwhile, the iOS version is rated 4.8 out of 5 based on over 64,000 reviews on the App Store.
Other Business Banks in Southern California | |
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Bay Area Business Bank: Bank of America
What We Like
- Bonus of up to $500, plus ongoing rewards if qualifications are met
- Free digital tools to track business performance
- 200 free transactions per month with basic business checking
Drawbacks
- Cash deposit fees charged per $100 over monthly allowance
- Doesn’t offer ATM fee reimbursements
- Requires a $100 opening deposit
- Deposit checks, view accounts, make transfers, and pay bills via the mobile app
- Credit card processing and payroll services through ADP
- Cash Flow Monitor®, a cash management tool, lets you connect accounting, analytics, and payroll apps to help you make business decisions
- Allows you to check your business credit score through a partnership with Dun & Bradstreet
- Free debit card
- Integrations with QuickBooks, TurboTax, and Zelle
- Customer service during business hours in branch and via phone or social media messages
- Merchant services available through Expensify
- Other products include business savings, certificates of deposit (CDs), lending products, and financial analysis through Merrill Financial Advisor
Required Opening Deposit | $100 |
Required Balance Minimum | None |
Transaction Limit Before Fees | 200, then 45 cents per item |
Monthly Fees | $16; waivable if conditions are met |
Required Balance Minimum to Waive Monthly Fee | One of three ways to waive fee:
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Domestic Wire Transfer Fees | Fee varies |
International Wire Transfer Fees | Fee varies |
ATM Fees | None at over 17,000 ATMs nationwide; $2.50 per transaction on out-of-network ATMs |
Cash Deposited | Up to $7,500 per month free, then 30 cents per $100, per statement cycle |
APY | N/A |
When To Choose Bank of America
Another bank with branch locations in all of California’s economic regions is Bank of America, our choice for the best small business checking account. Like U.S. Bank, you can open accounts online, so you can bank with the company regardless of where your business is located in the Golden State.
Bank of America’s Fundamentals Business Checking gives you up to 200 transactions and $7,500 in cash deposits for free each month. If you exceed those limits regularly, your banking advisor may recommend a switch to the higher-tier Business Advantage Relationship Banking, with up to 500 free transactions and $20,000 in free cash deposits monthly.
You get outstanding ongoing rewards with Bank of America. It includes up to $500 in combined cash back rewards and statement credits with its business checking and credit card products. The bank also offers preferred rewards for business, including 25% to 75% bonus rewards on credit cards and up to a 5% to 20% higher interest rate on Business Advantage savings accounts.
The $16 monthly fee is waived with having at least a $5,000 combined average monthly balance, making $250 in new net purchases on your business debit card, or becoming a preferred rewards for business member.
You can even access your Dun & Bradstreet business credit score through the app, which is highly rated, with 4.6 stars on Google Play and 4.8 stars on the App Store. The account’s drawbacks include a $100 minimum monthly deposit and fees on out-of-network ATM withdrawals.
Other Business Banks in the Bay Area | |
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Southern Border Business Bank: Chase
What We Like
- $300 bonus when you open an account
- Easily waived monthly fee on three checking options
- Built-in POS options
Drawbacks
- Only 20 free transactions at basic checking level
- ATM fees not reimbursed
- Low savings interest rates
- Manage debit, deposit, and ATM card settings for individual employees
- Deposit checks, view account balances, pay bills, and make transfers through the mobile app
- Integrates with QuickBooks and other leading accounting software
- Free debit card, mailed within 10 business days of application approval
- Physical checks’ costs, depending on type ordered
- Chase Merchant Services
- Live customer support online or in branch during business hours
- Other products include business savings, CDs, lending products, credit cards, merchant services, and collection services
Required Opening Deposit | None |
Required Balance Minimum | None |
Transaction Limit Before Fees | 20, then 40 cents per transaction |
Automated Clearing House (ACH) Fees | $25 for first 25 items per month, 15 cents per item above 25 per month, $2.50 return fee |
Monthly Fees | $15; waivable if conditions are met |
Required Balance Minimum to Waive Monthly Fee | $2,000 minimum daily balance, or one of four other ways |
Domestic Wire Transfer Fees | Up to $35 for outgoing wires, up to $15 for incoming wires |
International Wire Fees | Up to $50 for outgoing wires, up to $15 for incoming wires |
ATM Fees | $3 per transaction at any non-Chase ATM, plus ATM operator fees |
Cash Deposited | $2.50 per $1,000 after you deposit $5,000 in a billing cycle |
APY | N/A |
When To Choose Chase
With branch locations in all 10 California economic regions and excellent online access for those not near a branch, Chase is a great choice for California companies. Chase’s entry-level account, Business Complete Banking, is excellent for smaller businesses without a lot of transactions or that need to deposit large amounts of cash each month. You get up to 20 free monthly transactions and up to $5,000 in free cash deposits.
For businesses that need more free transactions or would like a higher threshold of free cash deposits, Chase offers two additional business checking products. Its highest-tier account, Platinum Business Checking, is the best premium business checking account on the market.
To compare Chase’s three accounts, check out our review of Chase Business Checking.
Chase offers other outstanding business products and services, including business savings, lending products, credit cards, and lines of credit. It also provides commercial banking products through J.P. Morgan, such as commercial real estate loans, payment services, cash flow management, and merchant services.
For those who would rather do all of their business banking online or through an app, Chase’s app is well-rated on both Google Play (4.4 stars) and App Store (4.8 stars) out of more than 6 million combined reviews.
Other Business Banks in Southern Border | |
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San Joaquin Valley Business Bank: Citibank
What We Like
- $1 opening deposit
- Waivable monthly fees
- High fee-free monthly cash deposit limits
Drawbacks
- No free business checking account
- Accounts cannot be opened online
- Branches only in Washington, D.C., and 10 states
- Free optional debit card
- $2,000 welcome bonus (in selected areas)
- Send money, transfer funds, and deposit checks through mobile
- CitiBusiness® Checking Plus and CitiBusiness® Safety Check: Overdraft and uncollected funds protection
- Integrations with Quicken, QuickBooks, Paychex, Clover, and Zelle
- Customer service available toll-free Monday through Friday 7 a.m. to 11 p.m. Eastern time and weekends 9 a.m. to 5:30 p.m. ET
- Other products include savings, money market, CDs, credit cards, and lending
Required Opening Deposit | $1 |
Required Minimum Balance | 250, then 45 cents per transaction |
Monthly Fees | $15; waivable |
Required Balance Minimum to Waive Monthly Fee | $5,000 monthly average balance |
Domestic Wire Transfer Fees | Incoming: $15 Outgoing: $55 ($17 if online) |
International Wire Fees | Incoming: $15 Outgoing: $65 ($27 if online) |
ATM Fees | None at Citibank ATMs and over 60,000 ATMs in the US, including MoneyPass ATMs; $2.50 plus operator fees out-of-network |
Cash Deposit Fees | Up to $10,000 per month free, then 17 cents for every $100 |
APY | N/A |
*Citibank currently requires that you visit a branch to complete an application for a business checking account. There are branch locations in Washington, D.C., and 10 states: California, Connecticut, Florida, Illinois, Maryland, Nevada, New Jersey, New York, South Dakota, and Virginia. |
When To Choose Citibank
With a very highly-rated app and great checking features, Citibank is a fantastic option for California businesses. Its app is rated 4.7 stars on Google Play and 4.9 stars on the App Store out of over 4.7 million reviews.
The company’s Streamlined Checking has a $15 monthly fee, which is waived if you have at least a $5,000 monthly average balance. You get up to 250 free transactions and $10,000 in free cash deposits monthly.
One drawback with Citibank is you must visit a branch to open a business account. Branch locations are in areas from Greater Sacramento south to the Southern Border, except the Central Coast and Central Sierra regions.
Citibank offers a total of four business checking options. Monthly fees can vary for higher-tier accounts depending on your location, so check with your local branch for accurate pricing information.
In addition to free ATM transactions at Citibank ATMs, you won’t be charged at MoneyPass ATMs nationwide. However, Citibank does charge $2.50 for out-of-network transactions plus third-party fees.
It also offers business savings, money market, CD products, business credit cards, and lending. Lending options include business installment loans, lines of credit, healthcare practice finance, SBA loans, and commercial mortgages.
Other Business Banks in the San Joaquin Valley | |
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Central Sierra Business Bank: PNC Bank
What We Like
- Waivable $12 monthly fee; no monthly fee for the first three months from account opening
- Up to 150 free transactions for Business Checking; 500 for Business Checking Plus
- $200 welcome bonus for Business Checking and Business Checking Plus; $500 for Treasury Enterprise Plan
Drawbacks
- No free checking account
- Hefty wire fees
- Banking is limited to 28 states and Washington, D.C.
- Free Visa debit card with cash back rewards
- Deposit checks, pay bills, and view balances through the mobile app
- Online and mobile banking
- No setup fee for overdraft protection
- Integrates with QuickBooks, Xero, Intacct, and NetSuite
- Features PNC Merchant Services®, including ecommerce and in-person solutions
- Cash Flow Insight® tools help manage cash flow
Required Opening Deposit | $100 |
Required Balance Minimum | None |
Transaction Limit Before Fees | 150 per month, then 50 cents per transaction |
Monthly Fees | $12, waivable |
Domestic Wire Transfer Fees | Incoming: $15 Outgoing: $95 |
International Wire Transfer Fees | Incoming: $20 Outgoing: $135 |
ATM Fees | $3 per transaction at any non-PNC Bank ATM |
Cash Deposited | Up to $5,000 per month free, then 30 cents per $100, per statement cycle |
APY | N/A |
When To Choose PNC Bank
Another outstanding bank with locations in most of the southern two-thirds of the state of California is PNC Bank. It is an especially good choice for larger businesses with high transaction or cash deposit volumes.
Like many options in this guide, it has waivable monthly fees. For the company’s Business Checking options, the entry-tier account, you can get the $12 fee waived by having a $500 average monthly collected balance or meeting specific business credit card or merchant service linking and usage requirements.
With Business Checking, you get 150 free transactions and up to $5,000 in free cash deposits monthly. For businesses that exceed those, PNC Bank’s other accounts have you covered.
The mid-tier Business Checking Plus offers 500 free transactions and $10,000 in free cash deposits monthly. The high-tier Treasury Enterprise Plan offers 2,500 free transactions and $50,000 in free deposits. The requirements for waiving monthly fees increase with each account.
While there are not as many reviews as some of the other banks on this list, PNC Bank’s app is solidly rated. It has 4.5 stars on Google Play and 4.7 on the App Store out of a combined 1.5 million ratings.
One major drawback of PNC Bank is expensive outgoing wire fees. If you are a business that sends wires regularly, you should consider one of the other options on this list.
Other Business Banks in Central Sierra | |
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Northern Sacramento Valley Business Bank: Wells Fargo
What We Like
- Waivable monthly fees
- Strong branch presence with more than 4,500 bank locations
- Access to more than 12,000 ATMs
Drawbacks
- Requires a minimum opening deposit of $25
- Only 100 free transactions for basic Initiate account
- Charges monthly fees
- Free debit card
- Customized cards and checks
- Deposit checks, pay bills, and view balances through the mobile app
- Online and mobile banking
- Earn interest with a Navigate Business Checking
- Fraud protection controls
- Features merchant services, including POS solutions
Required Opening Deposit | $25 |
Required Balance Minimum | None |
Required Balance Minimum to Waive Monthly Fee | $500 minimum daily balance or $1,000 average ledger balance |
Transaction Limit Before Fees | 100 monthly, then 50 cents per transaction |
ACH Fees | None |
Monthly Fee | $10; waivable |
Domestic Wire Transfer Fees | $30 for outgoing; $15 for incoming |
International Wire Transfer Fees | $45 for outgoing; $16 for incoming |
ATM Fees | Free at 12,000-plus ATMs nationwide; $2.50 per out-of-network transaction |
Cash Deposited | Up to $5,000 free per month, then 30 cents per $100, per statement cycle |
APY | N/A |
When To Choose Wells Fargo
Another excellent bank with branches across California is Wells Fargo. With over 4,500 branches and more than 12,000 ATMs nationwide, companies can access their money from almost anywhere.
Only Chase has more branches (910) than Wells Fargo (838) in California, and only Bank of America and Chase have more ATMs nationwide.
The entry-level account, Initiate Business Checking, is a solid option for businesses with lower transaction levels. The monthly fee of $10 is waived if you have at least a $500 minimum daily balance or an average ledger balance of at least $1,000.
However, you are limited to 100 free monthly transactions; excess transactions cost 50 cents each. If you exceed those transactions, you’ll need to move up to either Wells Fargo’s Navigate Business Checking or Optimize Business Checking.
Both of those higher-tier accounts allow you up to 250 free transactions. The $75 monthly fee for Optimize Business Checking is not waivable. If you need a premium account, Chase is the better option.
It is also a full-service bank with business savings, CDs, business lending products, credit cards, and merchant services. It even offers 24/7 fraud monitoring and zero-liability debit card protection.
Wells Fargo’s app is well-rated on Android and iOS devices, receiving 4.8 stars in each app store based on more than 10.6 million reviews.
Other Business Banks in Northern Sacramento Valley | |
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Central Coast Business Bank: Mechanics Bank
What We Like
- $5,000 cash deposit limit for basic accounts
- Free account options for nonprofit organizations
- Wide range of lending products available
Drawbacks
- Minimum balance requirement of $3,000 for basic accounts
- $2 fee for out-of-network ATM usage
- Only available in California and Oregon
- Business Visa Debit Card
- Online banking
- Mobile banking
- Savings accounts, money market accounts, CDs, and lending products also available
Required Opening Deposit | $100 |
Required Balance Minimum | None |
Transaction Limit Before Fees | 150 per month, then up to 20 cents per transaction (12 cents for deposited items) |
Monthly Fees | $10, waivable |
Domestic Wire Transfer Fees | Incoming: $10 Outgoing: $30 Online outgoing: $15 |
International Wire Transfer Fees | Incoming: $10 Outgoing: $40 Online outgoing: $25 |
ATM Fees | None for Tri Counties and MoneyPass ATMs; $2 for nonnetwork use, and third-party operator fees may also apply |
Cash Deposited | Up to $5,000 per month; undisclosed fees apply for excess monthly cash deposits |
APY | N/A |
When To Choose Mechanics Bank
We have chosen three banks that are not nationwide for this list. The first is Mechanics Bank, located in all 10 of California’s economic regions. The only branch location outside of California is in Portland, Oregon.
Despite being unavailable outside of the West Coast, Mechanics Bank is a great option. With the entry-level Smart Business Checking, you get up to 150 free transactions and $5,000 in free cash deposits monthly.
The monthly fee of $10 is waived if you have at least $3,000 in average monthly collected balance or $6,000 or more in all eligible Mechanics Bank deposit accounts. If you are a nonprofit, the fee is also waived.
Mechanics Bank offers a total of four business checking options. All have waivable monthly fees and an increasing number of free transactions available. You can earn interest with the company’s Business Interest Checking, but you will need to contact a branch to see what that rate is.
Despite being a regional bank, Mechanics Bank has a very good app that is highly rated on Google Play (4.6) and App Store (4.8). Being a smaller bank, Mechanics Bank’s app has slightly less than 12,000 reviews. However, that means low reviews would pull the score down much easier, so it speaks to the quality of the Mechanics Bank app.
Other Business Banks in the Central Coast | |
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Greater Sacramento Business Bank: California Bank & Trust
What We Like
- Waivable monthly fees
- Up to $15,000 free cash deposits, except for Business Inspire Checking
- Up to $2,500 welcome bonus
Drawbacks
- Nonprofit account, Community Checking, has a $10 monthly fee
- Most basic account, Business Inspire Checking, has very limited free transactions
- Only available in California (although ATM network available in 10 additional states)
- Free business debit card
- Business online and mobile banking
- Multiple business checking options and business checking packages
- Integration with Quicken and QuickBooks
- Cash bonus for new business checking accounts
- Variety of lending products, including small business administration (SBA) loans and business access online loans
Required Opening Deposit | $50 |
Required Balance Minimum | None |
Transaction Limit Before Fees | 250 per month, then 45 cents per transaction |
Monthly Fees | $15, waivable |
Domestic Wire Transfer Fees | Incoming: $15 Outgoing: $35 |
International Wire Transfer Fees | Incoming: $15 Outgoing: $50 |
ATM Fees | None at CB&T and Zions Bancorporation, N.A. ATMs; $2.50 per transaction at non-CB&T ATMs and non-Zions ATMs |
Cash Deposited | Up to $15,000 per month free, then 20 cents per $100 |
APY | N/A |
When To Choose California Bank & Trust
Another bank local to the Golden State is California Bank & Trust (CB&T). Not only is it not located outside of California, but it only has branch offices in the southern two-thirds of the state outside of the Central Coast and Central Sierra regions.
The bank is owned by Zions Bancorporation, which operates financial institutions in 11 western states under different brand names. Those states are Arizona, California, Colorado, Idaho, Nevada, New Mexico, Oregon, Texas, Utah, Washington, and Wyoming.
CB&T offers five business checking options. The one we’re recommending is the second-tier account, Business Growth Checking. It provides up to 250 free transactions and $15,000 in free cash deposits monthly. The $15 monthly fee can be waived if you maintain a $2,500 minimum daily balance or $10,000 in business loan or credit card balances.
There are no ATM fees if you visit a CB&T or a Zions Bancorporation ATM. This extends your free ATM access to areas outside of California. You will pay $2.50 for out-of-network transactions plus third-party fees.
Like Mechanics Bank, CB&T has a very solid app with limited reviews. It is rated 4.1 on Google Play and 4.8 on the App Store out of about 6,700 reviews.
Other Business Banks in Greater Sacramento | |
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Northern California Business Bank: Westamerica Bank
What We Like
- No monthly fee for Select Checking
- Five business checking account options
- Customer service available seven days a week
Drawbacks
- Low free transaction limits
- $200 minimum opening deposit
- Branches limited to California
- Free business debit card
- Online and mobile banking
- Bill Pay (optional)
- Robust business services, includes merchant services, payroll services, and overdraft services
- Wide range of bank products—business savings, business credit cards, business CDs, and business lending
Required Opening Deposit | $200 |
Required Balance Minimum | None |
Transaction Limit Before Fees | 100 per month, then 20 cents per transaction |
Monthly Fees | $12, waivable |
Domestic Wire Transfer Fees | Incoming: $15 Outgoing: $35 |
International Wire Transfer Fees | Incoming: $15 Outgoing: $45 |
ATM Fees | None for Westamerica Bank ATMs, $2 per inquiry and $2.50 per withdrawal at non-WestAmerica Bank ATMs |
Cash Deposited | Unspecified |
APY | N/A |
When To Choose Westamerica Bank
One of the rare banks on this list that is unavailable in southern California is Westamerica Bank. It is available in most of the northern two-thirds of the state, except for the Northern Sacramento Valley region.
Nevertheless, it is a great option for businesses located in northern California. It offers five business checking options. Like with CB&T, we’re recommending the second-tier account Regular Checking. With it, you get up to 100 free transactions each month. The bank doesn’t specify on its website about cash deposit fees, so check with your local branch before signing up for an account.
You can get the $12 monthly fee waived with Regular Checking by maintaining a $3,000 daily balance and a $6,000 average daily balance. The account is geared toward businesses and government entities with simple account needs. The bank recommends the third-tier account Interest Checking for sole proprietors and nonprofit organizations.
Westamerica Bank is limited to California locations, so your ATM network will be limited to Westamerica ATMs in state. You will be charged $2.50 for out-of-network ATM transactions, plus third-party fees.
Like the two other previous options listed in our guide, Westamerica Bank has a solid app with limited reviews. It is rated 4.5 on Google Play and 4.7 on the App Store out of nearly 4,700 reviews.
Other Business Banks in Northern California | |
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How We Evaluated the Best Small Business Banks in California
We considered over 30 California-based banks when compiling this list. When we evaluated the best banks for small business in California and the alternatives, we considered
- Banks with physical locations in California
- Monthly fees, if any, and how easily they are waived
- Required opening deposit and balance minimums
- Transaction limits before fees
- ACH and wire transfer fees
- ATM fees and availability
- Cash deposit fees and availability
- Interest yield, if applicable
- Other checking account perks
- Software integrations
- Other business services provided
- Lending products provided
- Customer service
- Customer reviews
What To Consider When Choosing the Best Banks for Small Business in California
While we used our own criteria to select the leading accounts from the best small business banks in California for this list, here are some things you should consider before making a selection:
1. Consider the Need For a Bank With Physical Locations.
Many of the options on this list allow you to open a business bank account without ever visiting a branch. For some businesses, there may never be a need to visit a branch. However, if your business handles cash regularly, or you prefer in-person banking, you will want to be near a branch.
Each section of this buyer’s guide shows the economic regions in which a bank has branch locations. If you click the map in that rubric section, it will take you to the location finder for each bank.
This is important because California is so large. Just because there is a branch in the same economic region as your business doesn’t mean it is conveniently located near your company.
2. Understand the Fee Structure & How It Will Apply to Your Business.
While some of the banks listed here are fee-free, others charge waivable fees. Some banks don’t allow you to waive monthly fees as well. Those fees are easy to account for, but other fees might require a little estimation and calculation.
For example, every bank in this guide allows you a certain amount of monthly free transactions and cash deposits. If your monthly transactions exceed those limits, you may end up paying fees. Or you might need to upgrade to a higher account with higher thresholds before fees are charged.
In addition, there are wire fees, ACH charges, and ATM fees. While we give you a basic list of fees each bank charges, be sure to get a full schedule of business fees from the bank before choosing your provider.
3. Find Out If You Can Open an Account Online or in Person.
Some banks allow you to open an account and conduct all of your business banking without visiting a branch. Others, like Citibank, require you to visit a branch. In addition, depending on how your business is organized, you might be required to visit a branch to open an account. This is especially true for businesses with multiple owners (like a partnership).
Most banks will directly tell you on their website or during the online application process if you might need to visit a bank location instead.
4. Read Customer Reviews.
All 10 of our best banks of California have links to our individual bank reviews. Near the end of each review, you will find customer reviews. This is a great way to learn about a bank before signing up for an account. The only thing to consider about these reviews is that they often include personal account and business reviews.
Frequently Asked Questions (FAQs)
Every business should have at least a business checking account. If you want to earn interest on your reserve funds, consider a business savings, money market account, or business CD. As your business grows, you may need multiple accounts in multiple banks to ensure your company’s funds are adequately insured with the FDIC.
You should always consider a local bank for your small business, especially if you already have a personal relationship with that bank. You are more likely to get one-on-one attention, interest rate discounts, and other perks by opening an account with a local bank.
However, if your local bank doesn’t meet your business needs, then national banks with local branch offices can fulfill your needs while providing the same hometown perks of a local bank.
The requirements for opening a business bank account in California are generally the same as in any other state. Each state has local requirements that you must follow during the formation of your business, such as tax registration, a general business license, and additional regulatory licenses or permits. The specific documents required will vary depending on the organization type of your business.
You can open an account without an EIN in California, but it isn’t recommended. If you are a sole proprietor or your business is organized as a single-member limited liability company (LLC), you can use your social security number instead. If your business is organized in any other way, you must obtain an EIN before opening a business bank account.
Bottom Line
For business owners in California looking for a great bank for their company, the 10 banks highlighted in this buyer’s guide can provide you with the products and services to help your business thrive. There are also additional banks listed in each economic region if you would like to consider an alternative. Find a bank that offers the services you need and allows your business to expand. Also, consider where the physical locations are if you need to bank in person regularly.