Mechanics 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.
Mechanics Bank is a decent option for California-based businesses needing basic business checking solutions. The bank offers four types of business checking accounts: one midsized interest-earning account and three noninterest-earning business checking accounts that scale as your business grows. It also offers specialized services for businesses in the international services, healthcare, wine and vineyards, and title and escrow industries.
What We Like
- $5,000 cash deposit limit for basic accounts
- Free account options for nonprofit organizations
- Wide range of lending products available
Drawbacks
- Only available in California
- Minimum balance requirement of $3,000 for basic accounts
- $2 fee for out-of-network ATM usage
Features
- Business Visa Debit Card
- Online banking
- Mobile banking
- Savings accounts, money market accounts, certificates of deposits (CDs), and lending products also available
How Mechanics Bank Stacks Up With Its Competitors
Monthly Fee | Transaction Limit Before Fees | Minimum Balance Requirement to Waive Fees | Minimum Opening Deposit | |
|---|---|---|---|---|
 Smart Business Checking | $10; waivable | 150, then 20 cents per check paid, electronic debit, or electronic credit; 12 cents per deposited item | $3,000* | $100 |
 Silver Business Checking | $0 | 125, then 50 cents per item | N/A | $100 |
 Community Business Checking | $10 with paper statements or $7 with paperless statements; waivable | 200, then 35 cents per check | $1,000 | None |
*You can also waive the Smart Business Checking monthly fee by maintaining average monthly combined balances of $6,000 across all eligible Mechanics Bank deposit accounts.
When Mechanics Bank Is a Good Fit
- You use cash regularly: The fee-free cash deposit limit for Mechanics Bank’s lowest tier account is $5,000. Upgrading to its higher-tier accounts can raise your limit to $10,000 (Preferred Business Checking and Business Interest Checking) or $20,000 (Prime Business Checking).
- You run a nonprofit organization: Mechanics Bank’s Preferred Business Checking account charges no monthly fee to customers holding nonprofit organization status.
- Your business falls under one of Mechanics Bank’s specialized industries: The provider offers tailored financial solutions for businesses in international services, healthcare, wine and vineyards, or title and escrow.
When Mechanics Bank Is Not a Good Fit
- You operate outside California: As a regional bank, Mechanics Bank has no branches outside California. Chase, which has 4,700 branches across 48 states, is a better option for businesses in need of nationwide access to in-person banking services. Our Chase business checking review can help you determine whether the bank is a good fit.
- You cannot maintain a minimum balance of $3,000: Waiving the $10 monthly fee for Mechanics Bank’s lowest tier account requires a minimum balance of $3,000. UMe Credit Union offers similar services while letting you waive the monthly fee by simply signing up for e-statements. Read our UMe Credit Union business checking review for more information.
- You want a fee-free interest-earning account: Mechanics Bank’s interest-earning business account charges a $20 monthly service fee, while Bluevine charges no monthly fee and pays 2.00% interest on balances of $100,000 or less, provided you meet the account’s activity requirements. Learn more by reading our Bluevine business checking review.
If your small business meets one or more of these scenarios, check out our guide to the best small business checking accounts for additional recommendations.
Mechanics Bank Business Checking Overview
Mechanics Bank Business Checking Requirements
To open a business bank account with Mechanics Bank, set an in-person or phone appointment through the bank’s website. The bank will ask you to prepare the following documents:
- Valid photo ID for each authorized signer
- Tax ID, such as employer identification number (EIN) assigned letter from the IRS
- Fictitious business name statement, if applicable
You may be asked to provide additional documents depending on your business entity type. Click on your entity type for more information.
Corporation
- Amendments to articles of incorporation, filed copy (if articles of incorporation have changed since last provided)
Limited Liability Company (LLC)
- Articles of organization (LLC1), filed copy (if applicable)
- Amendment (LLC2), filed copy (if applicable)
- LLC-12 statement of information, filed copy
Limited Partnership
- Certificate of limited partnership (LP-1), filed copy
- Partnership agreement copy
Nonprofit Association or Organization
- IRS letter of determination, copy (if applicable)
- FTB letter of determination, copy (if applicable)
- Organization bylaws, authorizing meeting minutes, or articles of incorporation
- Third-party verification
- Nonprofit or charity documents authorizing the account and signatories (if applicable)
- Charter letter from the religious governing body authorizing account and signatories (for churches)
For a downloadable checklist of documents banks typically require, read our guide on how to open a business bank account.
Mechanics Bank Business Checking Features
Business Visa Debit Card
As a Mechanics Bank business account holder, you may request a Business Visa Debit Card. The card can be used to withdraw and deposit cash at MoneyPass ATMs or make purchases anywhere Visa is accepted.
There’s a $2 fee for using your debit card at non-MoneyPass ATMs. Third-party operator fees may also apply.
Online Banking
Business Online Banking at Mechanics Bank comes in three tiers. Basic Online Banking provides the following features:
- Up to 10 accounts ($1 per account after the limit)
- Bill pay
- Info reporting
- Loan reporting
- Account transfer
- e-Statements
- Mobile banking
Upgrading to the Intermediate Plan for $30 per month raises your fee-free additional account limit to 25. It also gives you access to online prefund automated clearing house (ACH) origination. Meanwhile, upgrading to the Advanced Plan for $75 per month provides unlimited accounts and gives you access to online prefund and credit-based ACH origination, wire origination, and remote deposit capture.
Mobile Banking
Enrolling in Business Online Banking gives you access to the Mechanics Bank mobile app, available on iOS and Android. Through the app, you can:
- Deposit checks remotely
- View balances and transactions
- Transfer funds
- Pay bills
- Locate branches and ATMs
The app has a rating of 4.8 out of 5 on the App Store and 4.5 out of 5 on Google Play. Reviewers praised the easy-to-navigate UI. However, many said that the mobile check deposit feature is unreliable.
Other Mechanics Bank Business Products
Savings Products
The savings solutions Mechanics Bank offers include:
- Business savings
- Business money market
- Business investment money market
- CD
Savings accounts and money market accounts come with their own free Mechanics Bank Visa Debit Card. You can link your savings or money market accounts to your primary checking account for overdraft protection.
Lending Products
Mechanics Bank offers a wide range of small business lending products, including:
- Term loans with low, fixed, or variable rates
- Lines of credit with local credit approval
- Owner-occupied real estate Financing with adjustable five- or 10-year fixed rate terms
- Small Business Administration (SBA) Loans, including SBA 7(a) loans, SBA 504 loans, and SBA Express loans
For businesses whose financing needs are more complex, Mechanics Bank also offers commercial lending products, such as multifamily lending, commercial real estate (CRE) lending, equipment financing, trade services, and letters of credit.
Mechanics Bank Business Checking User Reviews
| PROS | CONS |
|---|---|
| Reasonable rates for lending products | Hard-to-reach customer service |
| Easy-to-use mobile app | High employee turnover rate |
| Unintuitive online banking services | |
Mechanics Bank has a rating of 2.5 out of 5 on WalletHub. However, very few customers posted reviews about Mechanics Bank’s business checking products. A large number of past customers complained about the bank’s customer service. According to them, the bank rarely returns emails, messages, or phone calls. Customers also reported that employee turnover rates have been high recently, which meant that many found it difficult to establish trust with the bank’s staff.
Satisfied customers typically remarked on the bank’s lending products, having praised the company for offering reasonable and affordable interest rates. Additionally, reviewers said that they found it easy to apply and get approved for Mechanics Bank financing products.
Bottom Line
While Mechanics Bank’s business checking products are comprehensive enough to meet the needs of the average small business, reviews from past users indicate a lack of a reliable customer service arm. Additionally, Mechanics Bank’s minimum balance requirements for waiving monthly fees are slightly higher than those of its competitors.
