HomeStreet Bank Business Checking Review 2023
Tricia has nearly two decades of experience in commercial and federal government lending. Her expertise is highlighted throughout small business loan content on Fit Small Business.
Ricci Recto has two years of writing experience creating digital marketing content for finance clients. She specializes in business banking.
This article is part of a larger series on Business Banking.
HomeStreet Bank is a great choice for business owners with modest monthly transaction volumes. The bank provides two small business checking account options that feature low and waivable monthly fees, free online banking access with an optional bill payer, mobile banking, and no cash deposit fees. Its higher-tier account, Business Advantage, also offers an annual percentage yield (APY) of 0.10%.
The bank has branches in California, Hawaii, Oregon, and Washington. You are required to visit a branch to open an account.
What We Like
- Low and waivable monthly fees
- No cash deposit fees
- Offers an interest-earning account, Business Advantage
Drawbacks
- Steep minimum opening deposits
- Branches limited to California, Hawaii, Oregon, and Washington
- Applicants have to visit a branch to open an account
Features
- Free debit card
- Online and mobile banking
- View account balances, transfer funds, pay bills, and deposit checks using the mobile app
- Direct Connect service that integrates with QuickBooks and Quicken
- Wide array of bank products include business savings, credit cards, and lending
How HomeStreet Bank Stacks Up With Its Competitors
Annual Percentage Yield (APY) | Cash Deposit Fee | ATM Fee | Geographic Availability | |
|---|---|---|---|---|
 Business Basics | None | None | None at HomeStreet Bank ATMs and MoneyPass ATMs; $1.50 per transaction at nonaffiliated bank ATMs | California, Hawaii, Oregon, and Washington |
 Business Advantage Fundamentals Banking | N/A | Up to $7,500 per month free, then 30 cents per $100, per statement cycle | None at 16,000-plus ATMs nationwide; $2.50 per transaction out-of-network | All states except Alabama, Alaska, Hawaii, Louisiana, Mississippi, Montana, Nebraska, North Dakota, Vermont, West Virginia, Wisconsin, and Wyoming |
 Business Complete Banking | N/A | Up to $5,000 for free, then 2.50 per $1,000, per statement cycle | $2.50 per transaction at any non-Chase ATM, plus ATM operator fees | All states except Alaska and Hawaii |
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 $0.35.
- You need access to a wide range of lending products: With HomeStreet Bank, you get a variety of lending options, from Small Business Administration (SBA) loans and lines of credit to 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 Quicken or QuickBooks. This service requires enrollment and bank approval.
When HomeStreet Bank Is Not a Good Fit
- You are located outside HomeStreet Bank’s service area: HomeStreet Bank’s branches are located in only four states: California, Hawaii, Oregon, and Washington. If you require in-person banking, it’s best to consider a provider like 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: Currently, HomeStreet Bank’s Business Advantage checking account earns 0.10% APY. Meanwhile, the online banking platform Bluevine offers an APY of 2.0% on qualifying balances of $250,000 and less. To learn about how to qualify for Bluevine’s APY, refer to our Bluevine business checking review.
- 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.
See our guide to the best small business checking accounts for additional recommendations.
HomeStreet Bank Business Checking Overview
HomeStreet Bank Business Checking Requirements
HomeStreet Bank requires all business checking accounts 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
HomeStreet Bank’s business checking accounts provide online and mobile banking access, an option to earn interest, and integration with accounting software for easy account reconciliation.
Interest-bearing Account
Business owners can open a Business Advantage account that earns APY, with a current rate of 0.10%. The interest is compounded monthly and credited to the account on the last day of the statement cycle. Rates can vary for different states and are subject to change at any time.
Business Online & Mobile Banking
You can check your account balances online, transfer funds, pay bills, and deposit checks using your mobile device. Business online banking is free with an optional bill payer.
Reviews for HomeStreet Bank’s business mobile banking app are generally positive on App Store (4.6 out of 5) and Google Play (3.5 out of 5). Users find it easy to use and convenient, letting them skip bank trips. However, others complained that the instructions for depositing checks were repetitive and time-consuming. For more information, see HomeStreet Bank on Google Play or HomeStreet Bank on App Store.
Cash Management Services
- Collecting and disbursing funds: ACH origination, branch deposits, cash concentration, cash vault/armored car, lockbox, wire transfers, merchant bank card services, remote deposit capture (RDC), Check2ACH, business credit cards, and corporate purchase cards
- Managing funds: Cash sweep, loan sweep, and zero balance accounts (ZBA)
- Information: Account analysis, Positive Pay, ACH Positive Pay, check images on CD-ROM, e-statements, e-notices, and Electronic Data Interchange (EDI) reporting
RDC
Business owners can save time and deposit checks directly from their computer or mobile device. HomeStreet offers Merchant Capture, 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 simply use your iOS or Android device.
Direct Connect
You can save more time, avoid manual entries, and prevent duplicate transactions by enrolling in Direct Connect. It lets you download all bill payments and transfer funds between your HomeStreet Bank accounts using Quicken or QuickBooks. Because the Direct Connect files can be opened within the accounting software, reconciling data is faster and easier than ever.
Note that Direct Connect enrollment is subject to bank review and approval.
Other Business Checking Accounts
HomeStreet Bank offers a Business Analyzed checking account, Interest on Lawyers’ Trust Account (IOLTA), and Interest on Real Estate Trust Account (IRETA).
Other 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 that allows you to earn interest. The rates can vary by state and are subject to change without notice. No minimum balance is required to earn interest, but you need to maintain a $200 daily balance in your account to waive the $1 monthly fee.
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 a high-yield account. No minimum balance is required to earn interest, but you need to maintain $1,000 daily balance in your account to waive the $5 monthly fee.
- Business money market special account: For guaranteed high fixed interest, you can open this account with a minimum deposit of $100,000. Funds to open must be new money or funds not currently on deposit with HomeStreet Bank by the account holder. To waive the $5 monthly fee, you need to maintain a $1,000 daily balance in your account.
Business owners with excess cash balances can earn returns through this account. Your funds are protected by multimillion Federal Deposit Insurance Corp. (FDIC) insurance. The monthly service charge is $75.
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, cell phone providers, and office supply stores, including restaurants. For other eligible purchases, you can earn 1% unlimited cash back.
- Business Card lets you save on interest with its extended low rate.
- Smart Business Rewards Card 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.
The lending products in HomeStreet Bank’s selection include:
- Small Business Administration (SBA) lending: HomeStreet Bank offers SBA 7 (a) real estate loan and SBA 7 (a) business loan, SBA 504, SBA Express, and SBA CAPLines. These come with lower down payments and longer terms.
- Streamlined Business Lending: Business owners can take up loans for different business needs. The bank offers a working capital line of credit, equipment loan, non-revolving line of credit, and owner-occupied real estate loan.
- Professional practice lending: 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.
- Commercial lending: The bank offers several business solutions, such as owner-occupied real estate loans, lines of credit, and term loans.
- Commercial real estate (CRE) lending: For property acquisitions, refinancing, construction, or rehabilitation, you can apply for a permanent loan, Fannie Mae DUS loan, bridge loan, or construction loan. The loan size starts at $2 million and reaches up to $100 million with a floating or fixed rate.
- Homebuilder construction financing: HomeStreet Bank also provides builder construction financing through construction loans, lot acquisition loans, and land development loans.
HomeStreet serves banking solutions to nonprofit organizations, manufacturing businesses, and property management firms or homeowners’ associations (HOAs).
HomeStreet Bank Business Checking User Reviews
| PROS | CONS |
|---|---|
| Friendly and helpful loan officers | Cases of mortgage loans being sold to another bank |
| Quick and convenient loan process | Cases of checks being held for two weeks |
| Higher interest rate on savings account compared to other banks | Bad customer service experiences |
| No hidden fees | Digital banking needs improvement |
| Convenient location | Loans are not military-friendly |
On WalletHub1, the bank has a rating of 4.9, based on 2,000-plus reviews. It also has 1.2 stars on Better Business Bureau (BBB)2, although this rating was pulled from only around 10 reviews. Dissatisfied users criticized the bank for holding check deposits for too long. They also said that the bank’s online and mobile banking systems leave much to be desired.
The majority tended to focus on customer service rather than HomeStreet Bank business checking reviews. A few praised the bank’s staff for being responsive and helpful. However, account holders who were previously clients of banks that HomeStreet Bank acquired said that customer service was unreachable during the transfer process, which made the transition difficult and inconvenient.
Bottom Line
HomeStreet Bank is a decent bank for businesses operating in California, Hawaii, Oregon, and Washington. Both of its business checking accounts offer a moderate number of fee-free transactions while charging low, waivable monthly fees. However, although the bank has an interest-earning checking account, the offered APY rates are much lower than what many of today’s online banks provide.
User review references:
