HomeStreet Bank is a great choice for business owners with modest monthly transaction volumes. The bank has two regular small business checking account options that feature low and waivable monthly fees, free business online banking access with an optional bill payer, mobile banking, and no cash deposit fees:
- Business Basics provides small businesses with a 200 fee-free monthly transaction limit and waives the $10 monthly service charge if you maintain a $1,000 daily account balance.
- Business Advantage also offers a free monthly transaction allowance of 200 and lets you avoid the $15 monthly service charge and earn interest of 0.10% The annual percentage yield (APY) rate is valid as of Nov. 17, 2023, and is subject to change at any time. by maintaining a daily balance of $5,000.
HomeStreet Bank is a Federal Deposit Insurance Corp. (FDIC)-insured bank with branches in California, Hawaii, Oregon, and Washington. You are required to visit a branch to open an account.
Pros
- Low and waivable monthly fees
- 200 transaction limit under Business Basics
- Multiple business checking accounts
Cons
- Steep minimum opening deposits
- No free wires
- Low APY for Business Advantage account
Features
- Free debit card
- Online and mobile banking
- Direct Connect service that integrates with QuickBooks and Quicken
- Business Analyzed account, Interest on Lawyer’s Trust Account (IOLTA), and Interest on Real Estate Trust Account (IRETA)
- Business savings, money market accounts, and credit cards
- Small Business Administration (SBA) loans, commercial real estate (CRE) loans, lines of credit, and professional practice lending
- Merchant Bancard services
- High FDIC insurance coverage via sweep network
How HomeStreet Bank Stacks Up With Its Competitors
When HomeStreet Bank Is a Good Fit
- You have a low-to-moderate transaction volume: Both of HomeStreet Bank’s business checking accounts offer fee-free transaction limits of 200. The excess transaction fee is only 35 cents.
- You need access to a wide range of lending products: With HomeStreet Bank, you get a variety of lending options, from SBA loans and CRE loans to lines of credit and professional loans for doctors and lawyers.
- You want an account that integrates with accounting software: With HomeStreet Bank’s Direct Connect service, reconciling your accounts is automatic since fund transfers and bill payments can be done through QuickBooks or Quicken. This service requires enrollment and bank approval.
When To Consider HomeStreet Bank Alternatives
- You are located outside HomeStreet Bank’s service area: HomeStreet Bank’s branches are situated in only four states: California, Hawaii, Oregon, and Washington. If you require in-person banking, we recommend Chase, which has branches in 48 states. Our Chase business checking review can help you determine which of the bank’s checking accounts best suits your business needs.
- You want competitive interest on checking deposits: HomeStreet Bank’s Business Advantage checking account earns 0.10% interest. Meanwhile, the online banking platform Bluevine offers an APY of 2.0% on qualifying balances up to $250,000 for its Standard Checking and 4.25% for its Premier Checking. Learn how to qualify for Bluevine’s APY by reading our review of Bluevine business checking.
- You use wire transfers regularly: HomeStreet Bank charges $15 for incoming wire transfers, $35 for outgoing domestic wire transfers, and $45 for outgoing international wire transfers. With the fintech solution Mercury, all wire transfers are free. Read our Mercury business checking review to see if the provider fits the bill.
HomeStreet Bank Business Checking Overview
HomeStreet Bank Business Checking Requirements
Part of the HomeStreet Bank business checking requirements is that all business checking accounts need to be opened in-branch. You can call your nearest branch to ask for the relevant documentation prior to your visit.
Before opening an account, see our guide on how to open a business bank account, which includes a free downloadable checklist of required documents.
HomeStreet Bank Business Checking Features
Regular Business Checking Accounts
- Business Basics is a low-tier checking account that offers small businesses a 200 monthly transaction allowance. The opening deposit is $1,000, and maintaining this amount as a daily balance can waive the $10 monthly service charge.
- Business Advantage is an interest-bearing checking account that offers a free monthly transaction limit of 200. Maintaining a daily balance of $5,000 waives the $15 monthly service charge and earns you interest of 0.10% The APY rate is valid as of Nov. 17, 2023, and is subject to change at any time. .
Specialized Business Checking Accounts
- Business Analyzed is a checking account for businesses with larger balances and high transaction volume since it provides an earnings credit that can reduce or offset fees. This account has a minimum opening deposit of $100 and a monthly service charge of $15.
- IOLTA is a checking account suitable for lawyers managing their clients’ funds. This account draws interest that will be paid to the state bar association. The minimum opening deposit is $500 while the monthly service charge is $10.
- IRETA is an interest-bearing checking account designed for real estate professionals to deposit the pooled funds of their clients. The minimum opening deposit is $500 and the monthly service charge is $25. This account is available only in Washington.
Business Online & Mobile Banking
HomeStreet Bank offers business customers free, convenient, and secure online banking access. You can:
- View account balances and filter transactions by date, amount, or check number
- Transfer funds between accounts
- Customize the dashboard for easy account navigation
- Issue real-time stop-payment requests
- Make one-time or recurring payments via the Bill Pay service
- Export data to your accounting software for easy account reconciliation
- Enroll your business accounts in e-statements and e-notices
- Set user transaction limits and control account access
Downloading the HomeStreet Bank’s mobile app lets you perform mobile check deposits, transfer funds, and pay bills. On the App Store[1], the app received a 4.6 rating from around 1,000 reviews and, on Google Play[2], it has a rating of 3.4 from about 100 reviews.
Reviewers found the app user-friendly and secure, but some experienced login issues and complained that using biometrics to access their accounts can be a hassle. Others also mentioned that the mobile deposit functionality is inconsistent.
Cash Management Services
Collecting and Disbursing Funds
- ACH origination
- Branch deposits
- Cash concentration
- Cash vault/ Armored car
- Lockbox
- Wire transfers
- Merchant Bancard services
- Remote deposit capture (RDC)
- Mobile RDC
- Check2ACH
- Business credit cards
- Corporate purchase cards
Managing Funds
- Automatic cash sweep
- Automatic loan sweep
- Zero balance accounts
Information
- Account analysis
- Positive pay
- ACH positive pay
- Check images on CD-ROM
- e-Statements
- e-Notices
- Electronic Data Interchange (EDI) reporting
RDC
Business owners can save time and deposit checks directly from their computer or mobile device. HomeStreet offers a check scanner that lets you make a high volume of check deposits (beyond 20 per month). If you process a low number of checks, you can use your iOS or Android device.
Direct Connect
Enrolling in Direct Connect helps small businesses save time by reconciling data automatically, which helps avoid manual entries and prevent duplicate transactions. You can download all bill payments and transfer funds between your HomeStreet Bank accounts using QuickBooks or Quicken. Because the Direct Connect files can be opened within the accounting software, reconciling data is faster and more convenient.
Note that Direct Connect enrollment is subject to bank review and approval.
Other HomeStreet Bank Business Banking Products
HomeStreet Bank has a wide array of business banking products, from savings accounts to credit cards and business loans.
With a $200 minimum deposit, you can open a business savings account with no minimum balance to earn interest. However, you need to maintain a $200 daily balance to waive the $1 monthly fee. This account offers 10 free monthly withdrawals, and past that limit, $5 per withdrawal will be charged.
HomeStreet Bank offers two types of business money market products. The rates may vary per state and are subject to change without notice:
- Business Money Market: For a $1,000 minimum deposit, you can open this high-yield account. No minimum balance is required to earn interest, but you need to maintain a $1,000 daily balance to waive the $5 monthly fee. Ten free withdrawals are provided, and each additional withdrawal costs $15.
- Business Money Market Special Account: This account offers tiered interest and requires a minimum deposit of $1,000. To waive the $5 monthly fee, you need to maintain a $1,000 daily balance. You get 10 complimentary withdrawals each statement cycle.
Business owners with excess cash balances can earn returns through this account. Your funds are protected by multimillion FDIC insurance through deposit placement at member banks in the sweep network. The account’s monthly service charge is $75.
Read our article on FDIC insurance for business accounts to learn how it works and what it covers.
The bank has different business credit card options available and features free online expense reporting tools. No fees are charged for requesting additional employee cards:
- Business Cash Preferred Card offers 3% cash back if you use it at gas stations, office supply stores, and restaurants. For other eligible purchases, you can earn 1% unlimited cash back.
- Business Card lets you save on interest with its extended low introductory rate.
- Smart Business Rewards Card automatically provides 2x points per $1 spent from your top two spending categories. You also gain 1 point per month per $1 spent on your other eligible purchases.
- Business Real Rewards Card allows you to earn 1.5 points each month for every $1 you spend on eligible purchases. You also get 2,500 bonus reward points after your first purchase.
1. SBA Lending comes with lower down payments and longer terms:
- SBA 7 (a) real estate loans have up to $5 million and 25-year terms.
- SBA 7 (a) business loans have terms from seven to 10 years for up to $5 million. See our guide to SBA 7(a) loans for more information on the loan type.
- SBA 504 loans provide terms of 20 to 25 years for up to $11.25 million. Learn more about its rates and fees through our guide to SBA 504 loans.
- SBA Express loans offer five-year lines of credit for up to $500,000. Our article on SBA Express loans discusses how it differs from SBA 7(a) loans.
- SBA CAPLines allows 3- to 5-year lines of credit for up to $5 million. You can learn more about the CAPLine rates, terms, and qualifications through our SBA Line of Credit article.
Check out our guide on how to get an SBA loan to review your eligibility and find an SBA provider.
2. Streamlined Business Lending allows business owners to take up loans for different business needs, such as
- Working capital line of credit funds short-term needs and has a term of 24 months.
- Equipment loans are ideal for purchasing new equipment and have 84-month terms.
- Nonrevolving lines of credit allow more fixed assets to be purchased through multiple payouts under a single loan application. These loans have a 12-month draw period and a 60-month repayment period.
- Owner-occupied real estate loans have a term of up to 120 months and can be used for owner-occupied property purchase or refinancing.
3. Professional Practice Lending through HomeStreet Bank helps medical doctors, dentists, veterinarians, and lawyers grow their practice through 80% to 100% financing for office expansions, acquisitions, or working capital. The terms can range from seven to 15 years with competitive rates.
4. CRE Lending is best for property acquisitions, refinancing, construction, or rehabilitation. You can apply for a Fannie Mae DUS, bridge, or construction loan. The loan size starts at $2 million and reaches up to $100 million with a floating or fixed rate.
5. Commercial Lending
- Owner-occupied real estate loans
- Lines of credit
- Term loans
Read our guide on what a business line of credit is. It also covers how it works, who should consider it, and its pros and cons.
6. Home Builder Construction Financing
- Construction loans
- Lot acquisition loans
- Land development loans
HomeStreet serves banking solutions to nonprofit organizations, manufacturing businesses, and property management firms and homeowners associations (HOAs).
HomeStreet Bank Business Checking Reviews From Users
Reviewers on WalletHub[3] left the bank with a 4.9 rating (from around 2,700 reviews). Meanwhile, on Better Business Bureau (BBB)[4], the bank has a rating of 1 from about five reviews. No client left a HomeStreet Bank business checking review. Most users praised the bank’s responsive customer service team, especially their helpful loan officers.
The bank received negative feedback from some customers for the long wait times when calling the customer service line. Others also complained about the lack of notice when the bank froze their accounts. There were also reviewers who said that the bank’s system is outdated.
Frequently Asked Questions (FAQs)
Yes. BauerFinancial, Inc., an independent United States bank rating company, gave HomeStreet Bank a 4-star rating and categorized it among the strongest financial institutions nationwide based on June 2023 financial data. HomeStreet Bank deposits are FDIC-insured up to $250,000 per depositor and account ownership.
HomeStreet Bank was established in 1921 and offers consumer and commercial banking and mortgage lending, including CRE financing.
As of Dec. 31, 2022, the bank has 58 deposit branches, four lending centers, and assets valued at $9.4 billion.
Bottom Line
HomeStreet Bank’s business checking accounts are great options for businesses based in California, Hawaii, Oregon, and Washington for their moderate fee-free transaction allowance and low, waivable monthly fees. The bank also offers specialized checking products that serve larger businesses and niche industries.
However, its interest-earning checking account, Business Advantage, offers a lower APY rate than most online banks. Still, opening a HomeStreet business checking account gives you access to the bank’s robust lending product selection, which can help you apply for business financing.
User review references:
[1]App Store
[2]Google Play
[3]WalletHub
[4]BBB
