8 Best Business Bank Account in California

Best Banks for Small Businesses in California

Bluevine: Best Secure Online Bank for Small Businesses in California
Capital One: Best Bank for Small Businesses in California for Rewards
U.S. Bank: Best Bank for Small Businesses in California for Its High-Level Financial Services
Bank of America: Best Bank for Small Businesses in California for Payment Services
Axos: Best Digital Banking App
Lili: Best User-Friendly Business Account
Oxygen: Best Business Checking Account for Freelancers
Chase: Best Bank for Small Businesses in California for Its Lines of Credit

Our Methodology

In order to identify the leading business banks in California, we assessed the range of services and products they offer. Additionally, we considered the expenses associated with maintaining accounts and the minimum balance needed to avoid these charges.

Moreover, we closely examined the various banking features provided by each bank. We also analyzed the fees imposed for banking services and the interest rates available to prospective clients.

>> Bluevine Business Bank Account >>

Bluevine: Best Secure Online Bank for Small Businesses in California

Interest Rates: 2.0% APY

Bluevine is a highly sought-after online banking system for small businesses due to its emphasis on security. They provide an incredibly versatile financing option that can be tailored to suit the unique needs of any business.

Additionally, Bluevine offers long-term loans and credits designed explicitly for small businesses. These loans feature repayment structures that are both accommodating and easy to navigate, along with reasonable interest rates.

With its zero deposit balance requirement and minimal fees, Bluevine has positioned itself as the ideal solution for businesses needing reliable financial services.

Why we chose it: The combination of high-interest rates, low fees, and no maintenance requirements makes Bluevine the ultimate choice regarding business bank accounts for LLCs or other types of businesses.

Pros

Competitive high-interest rates
Minimal fees associated
No mandatory minimum deposit

Cons

Lack of ATM reimbursement
Incurs fees for cash deposits
Absence of a dedicated business savings account

Fees

With Bluevine, you can enjoy banking without worrying about monthly fees. While there may be charges for using out-of-network ATMs, their mobile app can help you locate free withdrawal sites.

It's important to note that each cash deposit will cost $4.95, so it's advisable to use this feature sparingly. In short, Bluevine offers a fee-free banking experience with convenient options for managing your money on the go.

Interest Rates

Bluevine impresses with its generous 2.0% APY, which is a staggering 50 times higher than the current national average. This favorable rate applies to balances up to $100,000.

However, any additional funds exceeding this limit will not earn any interest. Bluevine truly allows small businesses to maximize their savings and thrive financially.

Minimum Balance

With Bluevine, you don't need to worry about maintaining a minimum balance, regardless of the amount in your account. Small businesses can begin with virtually no funds and immediately benefit from the attractive interest rate on offer.

Access to Mobile Banking

Banking on the go has never been easier with the user-friendly Bluevine mobile application. This intelligently crafted tool simplifies account management and provides complete visibility into your financial transactions.

Seamlessly pay vendors via wire or check and effortlessly schedule future payments for added convenience. With Bluevine, banking has never been more effortless.

>> Try Using Bluevine >>

Capital One: Best Bank for Small Businesses in California for Rewards

Interest Rates: 0.20% APY

When you choose to bank with Capital One, you'll enjoy a range of rewards such as cashback, travel rewards, and other perks.

Additionally, they provide loans and merchant services that are favorable regarding interest rates. Furthermore, Capital One is dedicated to securing your financial future by offering various financial services like savings accounts and CDs.

Moreover, Capital One stands out for its exceptional banking experience thanks to its cutting-edge technological tools, including mobile apps and mobile banking. You can quickly transfer funds and effectively manage your account regardless of location.

Why we chose it: Capital One empowers you with the flexibility to seamlessly transfer funds digitally without any restrictions.

Pros

No overdraft fees applied
Infinite digital transfers allowed
Extensive ATM network available

Cons

Monthly account fee applicable
There are few physical branch locations
Charges for out-of-network ATM usage

Fees

Capital One's business accounts impose a substantial $15 monthly charge, which may be burdensome for small businesses. However, you can avoid this fee by maintaining an average balance of $2,000 over a 30-day or 90-day period.

Furthermore, no fees are associated with utilizing any of Capital One's extensive network of 70,000 ATMs nationwide.

Interest Rates

By opening a business savings account with Capital One, you can enjoy interest rates up to 0.20% for the initial year. This rate applies to up to $5 million balances, providing small businesses with ample flexibility.

Unlike their checking accounts, which do not offer any interest, Capital One allows free digital transfers, making the deal even more appealing.

Minimum Balance

Maintaining a specific balance with Capital One is not required to keep your account open. It’s advisable, however, to have at least $2,000 in your checking account to avoid the monthly service fee of $15.

By keeping additional funds in your savings account, you can earn interest on money you do not currently use.

Access to Mobile Banking

With only a limited number of physical Capital One branches available, the bank's highly regarded mobile application steps in to provide assistance.

Through this app, users can perform various tasks such as transferring funds, making digital payments, and depositing money using their device's camera.

Moreover, the app grants access to Capital One's CreditWise service, which allows users to monitor their credit scores and receive valuable tips and advice.

>> Try Using Capital One >>

U.S. Bank: Best for Its High-Level Financial Services

Interest Rates: 0.01% APY

U.S. Bank is ideal for a small business looking for top-notch financial services. They offer a range of flexible loan options, competitive rates, and repayment plans to meet your needs. And that's not all - they also provide numerous rewards and incentives for using their services.

These include cash-back programs, Edge Cash Reward credit cards, and SBA cash rewards. With U.S. Bank, you can expect exceptional service tailored to your business requirements while enjoying the benefits of their rewarding offerings.

Why we chose it: U.S. Bank offers many lending options for small businesses seeking additional funds.

Pros

Tailored lending solutions to suit your requirements
Presence of 2,400 branch locations
Specialized merchant services catering to restaurants, retailers, and service providers

Cons

Fees for overdraft occurrences
APY is relatively low
Presence limited to 28 states

Fees

Rest assured that with U.S. Bank's silver checking package for small businesses, you won't have to worry about monthly fees.

As your company expands, higher-tier accounts may come with waivable monthly fees. However, monitoring your monthly transactions is essential to avoid any charges for surpassing the set limit.

Interest Rates

U.S. Bank's checking accounts do not offer the opportunity to earn interest. Although savings plans have various benefits, the highest interest rate currently available is a mere 0.01%. While this amount may be small, there are no limitations on your earnings as there is no balance cap in place.

Minimum Balance

U.S. Bank's silver account package for small businesses allows you to begin without requiring a minimum balance.

If you maintain the necessary balance amounts, other checking accounts have fees that can be waived. Savings accounts require a minimum balance of $500 or more to avoid service fees.

Access to Mobile Banking

You can handle all your banking needs using their mobile app if you are away from any of U.S. Bank's brick-and-mortar branches.

With this app, you can effortlessly move money between accounts and stay informed about your financial situation. Furthermore, the U.S. Bank will keep you in the loop with personalized notifications.

>> Try Using U.S. Bank >>

Bank of America: Best Bank for Small Businesses in California for Payment Services

Interest Rates: Up to 0.04% APY

Bank of America simplifies financial services for small businesses, ensuring that payment transactions using credit and debit cards are hassle-free. This facilitates convenient customer payments, making their service one of the top-notch merchant services available.

Additionally, Bank of America provides practical fraud prevention tools and cash management solutions to support the growth and security of your business.

Why we chose it: Bank of America offers a range of benefits that make banking advantageous for everyone involved.

Pros

Access to over 17,000 ATMs and 4,300 branches
Option to waive the monthly fee
Utilize preferred rewards for an enhanced interest rate

Cons

Absence of 24/7 customer service
Incurs monthly fees
Transaction fees apply when using non-Bank of America ATMs

Fees

Bank of America offers a checking account that includes an initial fee of $16 per month. However, you can avoid this charge by either maintaining a monthly balance of $5,000, spending at least $250 using your debit card, or becoming a member of their Preferred Rewards program.

It's essential to be aware of additional fees, such as out-of-network ATM withdrawals and excessive deposits in any given month. Rest assured that Bank of America provides options to help you minimize these costs and maximize your banking experience.

Interest Rates

When opening a savings account for their small businesses, most individuals will only earn an interest rate of 0.01%. However, if they engage in enough activity within Bank of America's rewards system, they can boost this rate to 0.04%.

Unfortunately, there’s no opportunity to accumulate interest using a Bank of America checking account.

Minimum Balance

If you maintain a monthly balance of $5,000 in your checking account, the $16 service fee will be waived. Likewise, keeping a minimum of $2,500 in your savings account is advisable to avoid a $10 monthly charge.

Access to Mobile Banking

Bank of America's mobile application is consistently recognized for its impressive functionality. It allows users to effectively manage their accounts, conveniently pay bills, and effortlessly transfer funds from anywhere.

Additionally, the app offers a budgeting feature that enables individuals to keep track of their expenses and maintain control over their spending habits.

>> Use Bank of America >>

Axos: Best Digital Banking App

Axos Bank prioritizes its customers by providing top-notch direct banking solutions. They prioritize the security of financial transactions by partnering with the Federal Deposit Insurance Corporation. Axos Bank's subsidiary, Axos Invest, offers investment opportunities for small businesses.

Additionally, Axos Bank offers various services, including business banking, digital banking, and personal banking. These services encompass business checking accounts, savings accounts, and mobile pay deposits.

You can expect numerous benefits by choosing Axos Bank as your financial institution for your small business needs.

Why we chose it: Axos Basic Business Checking stands out as an exceptional business bank account due to its attractive features, such as complimentary cash deposits and a highly competitive fee structure.

Pros

No monthly fee with unlimited transactions
24/7 customer support provided
Domestic ATM fees are reimbursed without limits
Cash deposits are facilitated through MoneyPass and AllPoint ATMs
New customer welcome bonus available (terms apply)

Cons

Lack of integrations with third-party apps
Interest checking APY is satisfactory but not exceptional

Fees

Axos Bank Basic Business Checking does not impose a monthly maintenance fee or any obligations for account retention.

Every month, you will be reimbursed for any ATM fees you may encounter, effectively making this account accessible to utilize. However, it’s important to note that Axos charges $35 per wire transfer if you anticipate conducting numerous transactions of this nature.

Interest Rates

Axos offers a business savings account that doesn't provide an annual percentage yield but instead focuses on offering perks to businesses. If you have extra funds, you can open this interest-bearing account and earn interest on your savings.

Minimum Balance

Axos Bank's checking and savings accounts do not impose any minimum balance requirements. As a small business owner, you don't have to worry about maintaining a specific balance to avoid monthly fees.

This feature makes Axos Bank an appealing choice for individuals who may not have substantial money to keep in their accounts.

Access to Mobile Banking

Axos Bank provides a comprehensive mobile banking application that enables customers to oversee their accounts, deposit checks, move funds, settle bills, and perform wire transfers directly from their mobile devices.

Additionally, the app includes account alerts and budgeting tools to ensure efficient financial management.

>> Try Using Axos Now >>

Lili: Best User-Friendly Checking Account

Lili presents a comprehensive and intuitive business checking account that simplifies all of your financial requirements. Their banking solution is specifically designed to cater to the needs of freelancers and small business proprietors.

You can effectively handle your tax obligations through an uncomplicated and user-friendly online checking account.

Moreover, you can conduct payments and other business transactions seamlessly with just one account. Additionally, no fees or minimum deposit prerequisites allow you to save even more money.

With Lili, managing your funds and financial transactions has never been more convenient - everything you need is just a tap away.

Why we chose it: Lili's cost-effective rates and software for maximizing tax benefits assist companies in retaining their hard-earned revenue. Additionally, if you're searching for an online business checking account that doesn't require credit checks, Lili is a fantastic choice.

Pros

Unlimited transactions without fees
Absence of fees, minimum balance requirements, or minimum opening deposit
Integrated tools for expense management and tax planning
Early payment feature with direct deposit, providing access to funds up to two days earlier than traditional bank accounts
Fee-free ATM access via the MoneyPass network; option to deposit cash through the Green Dot network

Cons

Cash deposits at Green Dot locations cost up to $4.95 per deposit
No checkbooks and no ability to send or receive wire transfers
Limited business features include no joint accounts, multiple business debit cards, or third-party integrations

Fees

Lili's appeal lies not only in its exceptional free tax software but also in the absence of account and overdraft fees for business owners. In addition, there are no charges for foreign transactions or when using any of the 38,000 in-network ATMs across the United States.

However, if you find yourself using an out-of-network ATM machine, be prepared to pay a fee ranging from $2.50 to $5. Enjoy the convenience and cost savings that Lili offers!

Interest Rates

Lili's Business Checking account does not accrue any interest. However, customers willing to pay can open a savings account offering a 1.5% APY (Annual Percentage Yield). To offset the monthly cost of this account, you will need to maintain a minimum balance of $34,000 at all times.

Minimum Balance

Lili Bank offers a checking account that does not have a minimum balance requirement, allowing you to avoid monthly fees without the need to maintain a specific balance. This makes it an attractive choice for those starting their business or with an income that varies.

Access to Mobile Banking

Lili Bank provides a specialized mobile banking application for freelancers and small business proprietors. With this app, you have the capability to effectively handle your finances through various functions like expense control, tax savings, and payment management, all accessible from your mobile devices.

Additionally, the app offers convenient features such as real-time payment notifications, budgeting tools, and the ability to deposit checks via mobile.

>> Use Lili >>

Oxygen: Best Bank for Its Business Offerings

Oxygen has significantly impacted the fintech industry by offering exceptional banking services and customer experience.

Those seeking to reduce their banking costs will find Oxygen to be the ideal choice. They offer fee-free banking, meaning customers are not charged any monthly maintenance or overdraft fees.

Oxygen's mobile banking feature allows users to manage their accounts conveniently from any location. Additionally, they provide various options for depositing funds into business checking accounts. These options include mobile check deposits, direct deposits, and mobile transfers.

Why we chose it: Oxygen communicates in the dialect of the fashionable entrepreneur, presenting a range of impressive banking capabilities along the journey. Furthermore, it stands as the best checking account option for individuals who are sole proprietors.

Pros

5% cashback rewards offered
Geared towards trendy business owners
Ability to generate virtual, single-use debit cards

Cons

Lacks lending options
Offers fewer integrations compared to other options
Operates as a virtual bank with no provision for cash deposits

Fees

Oxygen declares that it’s free of fees, except for potential charges for out-of-network and international withdrawals. Rest assured, you won't have to worry about any costs for ACH transfers or maintaining your account.

Interest Rates

Although your business checking account doesn't earn interest, Oxygen offers a solution by introducing a business savings account.

Any funds deposited in the savings account will accumulate interest at a rate of 1.0% for balances up to $20,000. Amounts exceeding this threshold will still earn interest, albeit at a lower rate.

Minimum Balance

Oxygen Bank's checking and savings accounts do not impose any minimum balance requirements. There are no monthly fees, regardless of the account balance. Customers need not be concerned about charges even if they do not meet a specific deposit threshold.

Mobile Banking Features

Oxygen Bank presents a mobile banking application specifically crafted to aid small business proprietors in efficiently handling their finances while on the move.

With this app, you can effortlessly deposit checks, execute bill payments, and generate detailed account statements. Additionally, it provides valuable spending insights that enable you to monitor your financial activities effectively.

>> Use Oxygen >>

Chase: Best Bank for Small Businesses in California for Its Lines of Credit

Interest Rates: Up to 0.02% APY

Chase Bank presents an exceptional selection of loans and credit lines tailored specifically for small enterprises. With a comprehensive array of financial products and services, Chase Bank is the go-to option for small businesses in search of flexible and convenient repayment options.

Additionally, their online and mobile banking platforms are incredibly user-friendly, allowing customers to effortlessly handle bill payments, account management, and fund transfers from any location.

In terms of security measures, Chase Bank offers unrivaled protection for financial transactions with features like multi-factor authentication, fraud monitoring, and robust encryption protocols.

Why we chose it: To help your business thrive, Chase offers an extensive range of merchant services in addition to its traditional banking options.

Pros

$300 sign-on bonus offered
Multiple methods to waive the monthly maintenance fee
Numerous merchant services are available

Cons

Offers minimal APY
Incurs monthly maintenance fees
Limited to 20 free transactions each month

Fees

Chase Business Complete Banking offers a starting monthly fee of $15, which can be waived by maintaining a daily balance of $2,000, using Chase QuickAccept for deposits, or making purchases with the Chase Ink Business Card.

It's important to note that there are charges for transactions beyond the first 20, and it's advisable to avoid expensive wire transfers whenever feasible.

Interest Rates

Like other banks, Chase does not offer interest in funds in a business checking account. Opening a business savings account with Chase is necessary to earn an interest rate, which can accumulate up to 0.02% interest.

Minimum Balance

To evade Chase's monthly service fee, it’s advisable to always maintain a minimum balance of $2,000 in your checking account.

A single instance of going below this threshold within a month will result in the fee being imposed. However, if you have an active checking account with Chase, there are no fees for savings accounts.

Access to Mobile Banking

Apart from the usual banking processes, the Chase mobile application enables you to secure or unsecure your credit card in case it gets lost.

Additionally, there’s a feature for planning your budget and saving money specifically for significant purchases. It also provides tools to monitor and safeguard your credit score.

>> Use Chase Business >>

Methodology for the Best Banks for Small Businesses in California

To identify the best business bank account in California, we carefully considered various factors that can impact the establishment and operation of accounts. Our findings were analyzed with utmost diligence to ensure their precision and reliability.

Fees: Small businesses often need to monitor their expenses closely. Opting for a bank that imposes minimal costs or provides options to waive them with simple steps can prevent draining your account.

We sought banks with no maintenance fees or flexibility to waive them, emphasizing institutions that keep transaction and transfer costs at a minimum.

Interest Rates: While business bank accounts primarily facilitate organizational transactions, earning some interest is always a plus.

Our selection includes banks offering accessible interest rates on checking and savings accounts, providing an opportunity for extra cash. Some options surpass the national average, ensuring your funds work harder for you.

Minimum Balance: Banks with maintenance fees often offer waivers based on the account balance. Recognizing the financial constraints of small businesses, we identified institutions with low balance requirements to avoid fees.

Additionally, some banks have minimum credits to unlock interest rates or other perks, catering to businesses with limited initial capital.

Access to Mobile Banking: In our fast-paced world, having banking services at your fingertips is invaluable. The rise of online-only banks and the increasing focus on mobile apps by traditional banks have transformed the banking landscape.

Our selections prioritize banks with top-tier mobile banking options, ensuring easy management of finances and payments from anywhere.

Ease of Use: Simplicity is vital in our top picks for small business banking. We ensured that features, from transfers and payments to opening a business account with an EIN, are straightforward.

No bank account should be more troublesome than it’s worth, and our selections prioritize user-friendly experiences.

>> Open Your Business Account with Bluevine >>

Best Banks for Small Businesses in California – Frequently Asked Questions (FAQs)

Are you seeking further information regarding the process of opening a bank account for your business in California? This frequently asked questions (FAQ) document contains all your necessary answers.

What Are the Requirements to Open a Business Account in California?

To open a business bank account in California, you typically require proper documentation for your business, personal identification for all owners or authorized signers, and an initial deposit.

Certain banks might also request supplementary paperwork like proof of address or a comprehensive business plan.

Can I Open a Bank Account With My EIN Number?

Opening a bank account with an EIN number is definitely an intelligent move. Every business with at least one employee needs an EIN for tax-related reasons, and banks will ask for it when setting up your account.

If you're the sole employee of your business, you can use your social security number (SSN) as an alternative. However, relying on your SSN can make it difficult to differentiate between personal and business finances.

Can I Open a Business Bank Account in California Without an EIN?

In the majority of situations, it’s not possible to initiate a business account in California without an EIN. Banks necessitate an EIN when establishing a business bank account. You can apply for one via the IRS website if you do not possess an EIN.

How Much Should a Small Business Have in a Bank Account?

Setting aside a minimum of six months' worth of operational expenses as a precaution is advisable if any complications arise with your business operations.

This reserve can serve as a safety net while you navigate through any temporary downturns. Aim to allocate at least ten percent of your monthly profits towards expanding these savings.

Bottom Line – Best Business Bank Account California

For entrepreneurs based in California, opening a business bank account is highly recommended. Doing so will improve your ability to manage finances, build stronger customer relationships, and make transactions more accessible and convenient.

While Bluevine emerged as the leading choice in our evaluation, all other banks mentioned in our review also suit your needs.

When considering different choices, it’s important to give preference to the ease and convenience of banking services while also assessing the variety of products and services offered. Ensuring these aspects align with your financial goals gives you certainty in your decision-making process.

>> Open Your Business Account with Bluevine >>