If you’re looking for affordable regional banking in Southern California, Farmers & Merchants Bank (F&M Bank) is a great option. It offers four types of business checking products:
- Business Checking Non-Analyzed is a basic account offering 300 free monthly transactions with a waivable monthly maintenance fee of $20.
- Business Checking Analyzed fits businesses with high transaction volumes and offers an earnings credit that can offset banking fees.
- Business Checking Plus provides cash management services and up to 400 free debit transactions, including a waivable $35 monthly maintenance fee.
- Business Interest on Checking is ideal for sole proprietors, nonprofits, and government entities and offers a 0.05% annual percentage yield (APY).
The bank extends specialty banking services for faith-based organizations and healthcare businesses.
Pros
- Unlimited check-writing and deposit transactions
- 300 fee-free debit transactions per month for basic account
- Sweep accounts and zero balance accounts available
- Two free outgoing domestic online banking wires (eNotice) for Business Checking Plus
Cons
- $20 monthly service fee and $5,000 minimum daily balance requirement for basic account
- $3 per paper statement
- $5 per additional account user
- $200 minimum opening deposit
Features
- Scalable checking accounts
- Business Debit Mastercard with alerts
- Business online and mobile banking
- Merchant Services, including Bill pay
- Specialty services for healthcare and faith-based organizations
- Savings accounts, money market accounts (MMAs), and certificates of deposit (CDs)
- Credit cards, commercial real estate (CRE) lending, and specialty commercial loans
How Farmers & Merchants Bank Stacks Up With Its Competitors
Monthly Fee | Transaction Limit Before Fees | Minimum Opening Deposit | Wire Transfer Fees | Geographic Availability | |
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$20; waivable | $200 | $10 or $15 for incoming; $15 to $50 for outgoing | California | ||
$0 | No limit | None | $0 for incoming and outgoing | All states (online-only) | |
Visit Mercury
Mercury is a fintech platform backed and FDIC-insured by a supporting bank partnership with Evolve Bank & Trust and Choice Financial Group.
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$0 | 125, then 50 cents per item | $100 | $14 or $15 for incoming; $35 to $75 for outgoing | All states
U.S. Bank is available in all states via online banking. It has branches in Arizona, Arkansas, California, Colorado, Illinois, Indiana, Iowa, Kansas, Kentucky, Minnesota, Missouri, Montana, Nebraska, Nevada, New Mexico, North Carolina, North Dakota, Ohio, Oregon, South Carolina, South Dakota, Tennessee, Texas, Utah, Washington, Wisconsin, and Wyoming.
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When Farmers & Merchants Bank Is a Good Fit
- You want unlimited check-writing and deposits: Farmers & Merchants’ business checking accounts come with unlimited fee-free check-writing and deposit transactions.
- You run a healthcare business or faith-based organization: It offers specialty services, including customized lending, to clients running healthcare- or faith-related organizations.
- You want access to commercial lending products: It has CRE and construction lending, lines of credit, equipment loans, and business credit cards.
When To Consider Farmers & Merchants Bank Alternatives
- You want nationwide access to in-person banking: Farmers & Merchants Bank operates exclusively in California. Meanwhile, Chase has 4,700 branches in 48 states. Check out our review of Chase business checking to see which account fits your business best.
- You cannot maintain an average daily balance of $5,000: Farmers & Merchants Bank’s basic account, charges a $20 monthly maintenance fee, which is waived with a minimum daily balance of $5,000. We recommend the Burbank-based UMe Credit Union, which lets customers waive the $10 monthly service fee by signing up for e-statements. Read our UMe Credit Union business checking review for more information.
- You want to manage your business accounts with a team: Farmers & Merchants Bank lets customers add additional users to business accounts but charges a $5 fee per user. Meanwhile, the online-only banking solution Relay allows users to invite additional team members and customize access levels and spending limits for free. Additionally, you can issue up to 50 free employee debit cards. Learn more through our review of Relay business checking.
If your small business meets one or more of these scenarios, see our guide to the best small business checking accounts for additional recommendations. To view more alternatives in California, see our roundup of the top banks for small businesses in California.
Farmers & Merchants Bank Business Checking Overview
Farmers & Merchants Bank Business Checking Requirements
To open a business checking account with Farmers & Merchants Bank, you need to visit a branch location or submit a contact request online. You can ask to be contacted by phone or email. The contact request form will require the following information:
- First name
- Last name
- Phone number
- Email address
- ZIP code
Farmers & Merchants Bank accepts businesses that operate outside of California. However, non-California businesses must call Farmers & Merchants Bank at (866) 437-0011 to inquire.
On application, as part of the Farmers & Merchants Bank business checking requirements, you may be asked to provide relevant business documents. For a checklist of documents most business banks require, refer to our guide on how to open a small business checking account.
Farmers & Merchants Bank Business Checking Features
Business Checking Accounts
- Business Checking Non-Analyzed is a basic account providing fee-free 300 monthly debit transactions Transactions refer to withdrawals, checks, automatic transfers or payments per statement cycle. . The monthly maintenance fee of $20 is waived with a minimum daily balance of $5,000.
- Business Checking Analyzed is designed for businesses with high deposits and check distribution volumes. This account charges a $25 monthly maintenance fee in addition to service fees specified in F&M Bank’s services and fees. It offers a competitive earnings credit that can offset banking fees.
- Business Checking Plus offers cash management services, which include 15 mobile remote deposit capture transactions, two free outgoing domestic online banking wires (eNotice), 100 ACH debit/credit originations, and up to 400 free debit items. The $35 monthly maintenance fee is waived by meeting a $35,000 average daily balance.
- Business Interest on Checking is suitable for sole proprietors, nonprofits, and government entities. This account provides a 300 debit transaction allowance and waives the $25 monthly maintenance fee by keeping a daily balance of $6,000. It offers a variable interest rate that accrues daily and is credited monthly.
Digital Banking
The bank offers digital banking on web browsers and mobile. Through digital banking, you can check balances, pay bills and taxes, transfer funds, approve transactions, and generate reports. You may add additional users to your account, but Farmers & Merchants Bank charges a $5 fee per additional user.
The mobile app is well received, with a rating of 4.6 on App Store[1] from around 750 reviews and of 4.4 on Google Play[2] from about 300 reviews. Users praised the app for its ease of use and convenience. However, a few commented that the bill pay feature is difficult to navigate.
Text Banking
If you enroll in text banking, Farmers & Merchants Bank will let you view account balances, make transfers, and review recent transaction history by sending your provider the designated text codes via SMS. Although the service is free under Farmers & Merchants Bank, your wireless carrier may charge fees for texts.
e-Statements
You have the option to receive your monthly statements online rather than by mail. If you don’t enroll in e-statements, Farmers & Merchants Bank will charge you a $3 fee for each mailed paper statement.
Accounting Software Integrations
Farmers & Merchants Bank checking accounts integrate with Quicken and QuickBooks.
Sweep Accounts
A sweep account is a cash pooling system that remits excess funds from your primary checking account into an interest-earning secondary account. To set up a sweep account, you must determine a target balance for your primary account. When your income increases your balance past the designated target balance, Farmers & Merchants Bank will automatically transfer the excess funds to your sweep account.
Zero Balance Accounts
A zero balance account is a cash pooling system that remits funds from your primary to maintain a balance of zero. The system disperses funds into a secondary account for expenses, such as payroll, petty cash, or operating expenses.
Treasury Management Services
- Merchant services
- Remote deposit capture
- Lockbox services
- Cash vault
- Smart Safe
- Wire transfers
- Bill pay
- Positive pay
Other Farmers & Merchants Bank Business Products
- Business Market Rate Savings is a basic savings account that earns 0.05% APY and charges a quarterly fee of $15. The monthly fee is waived by maintaining a minimum average daily balance of $1,000. It has a withdrawal limit of six per quarter and an opening deposit requirement of $200.
- Business Market Rate Money Market earns 0.05% APY and charges a monthly fee of $15. The monthly fee is waived with a minimum daily balance of $4,000. It has no withdrawal limit, and the account’s opening deposit requirement is $200.
- CDs are interest-bearing accounts with terms between seven days and 60 months. CDs have a minimum opening deposit of $1,000.
Farmers & Merchants Bank offers specialty lending for owner-occupied real estate, non-profits, and houses of worship; commercial real estate and construction loans, and commercial and industrial lending for short-term financing needs:
- Specialty lending group: With a team of lenders who specialize in owner-occupied real estate financing, tax-exempt bond financing, and nonprofit lending, Farmers & Merchants Bank is able to offer customized lending solutions for owner-occupied real estate, nonprofits, and houses of worship.
- CRE and construction loans: Farmers & Merchants Bank offers permanent loans, bridge loans, renovation loans, construction loans, and master loan agreements with no prepayment penalties and competitive rates and terms.
- Commercial and industrial lending: Offers lines of credit, equipment loans, and loans secured by inventory or receivables for businesses with short-term financing needs.
Farmers & Merchants Bank offers low rates, flexible rewards, and cash back business Visa credit cards. All cards come with Zero Fraud Liability protection and free expense reporting tools. Cardholders may issue additional employee credit cards for free:
- Visa Business Card
- Visa Business Real Rewards Card
- Visa Business Cash Preferred Card
- Smart Business Rewards Visa Card
- Visa Business Company Card
- Visa CommUNITY Card (for nonprofits)
Farmers & Merchants Bank Business Checking Reviews From Users
Farmers & Merchants Bank has a rating of 3.8 on WalletHub[3] from more than 30 reviews, 4.5 on DepositAccounts[4] based on fewer than five reviews, and 3.2 on Yelp[5] from around 30 reviews. However, none of the users left any specific Farmers & Merchants Bank business checking reviews.
Many appreciated the bank’s customer-centric approach and stated that the team is very friendly, responsive, and professional. They praised the personalized and attentive service they received that conveyed care and concern.
Bottom Line
With unlimited check-writing and deposit transactions, Farmers & Merchants Bank’s business checking accounts are great for organizations looking for affordable and comprehensive products. However, although the bank accepts non-Californian businesses, fans of in-person banking might prefer providers with wider geographic coverage.