5 Best Small Business Banks In California (& 4 Runner Ups)

As a small business owner in California, the kind of business bank account you should choose will depend largely on your business model, size, growth projections, and need for loans and in-person customer service.

Monito evaluated dozens of banks based on these factors. To help you narrow down your search, we compare national banks, regional banks, online banks, credit unions, and neobanks to identify the highest quality choices for your specific business situation.

How To Choose the Best Bank Account for Your Small Business in California

Whether you are in Los Angeles, San Francisco, or Sacramento, the American financial sector has embraced digital technology to offer you banking services online. Easier access means more options for you to choose from. Since businesses differ greatly by model and by size, you will need to find the business bank account that fits your needs best. Let's walk through important features to consider.

Match Your Unique Business Channel 

If you are selling goods and services online, then a business account integrated with popular e-commerce stores and payment processors will be key. If you offer personal consulting services, then you may want to send invoices that avoid card transaction fees (from Stripe, for example). Business owners with physical storefronts will benefit from free cash and check deposits.

Understand How You Use Cash

It is common for restaurants, for example, to run on low margins. If this is the case for your business, then you may want to consider banks that offer low-fee overdraft protection. If you generate high cash flow, then many banks will manage your wealth with savings accounts and investment accounts.

If you expect to make upfront investments in capital, like a warehouse or a piece of equipment, then you may want to find a big bank that offers attractive SBA (Small Business Administration) loans. Even then, credit unions are community-based alternatives that also offer attractive rates for small business loans.

Leverage Software Features

This day and age, many business bank accounts come with digital features that automate accounting and track spending. Here are a few other popular online tools:

• Mobile banking;
• No account maintenance fees;
• Multi-currency accounts;
• Payroll services;
• Invoice chasing and tracking.

Identify the Ideal Size for Your Business

"Big" does not necessarily mean "successful." Some of the wealthiest freelancers and business teams are small; they leverage capital efficiently, run high margins, target the right customers, find the ideal sales channel, or use many other tactics. Depending on the "best size" for you, your ideal business bank account may change.

For example, Novo is one of the best all-rounders but Revolut Business has superior software for team management. Wise Business is great for international payments. Los Angeles FCU is a large credit union in California, and may provide local financing advice and customer service. Capital One, on the other hand, has a wide ATM network for free cash deposits across the Golden State.

Best Overall Small Business Account: Novo

Novo offers one of the all-around best online checking accounts for small businesses in the United States. It has some great app integrations and one of the lowest fee schedules we've seen yet from an online business account. You can apply online in as little as ten minutes.

Novo charges no monthly or hidden fees and has no minimum deposit requirement. This includes free incoming and outgoing ACH payments, incoming domestic wires, and out-of-network ATM withdrawals (they even refund international withdrawals).

You can send and track free and unlimited invoices from the Novo interface online, which is a major draw for small business owners. The business checking account allows multi-user access for your team and connects you to a library of thousands of your favorite apps. A few of the most well-known native Novo integrations include Stripe, Amazon, Etsy, Square, Shopify, Slack, Wise, eBay, Xero, and Quickbooks.

Trusted by over 175,000 small business owners across the country, Novo's banking services are provided by Middlesex Federal Savings F.A., a member of the FDIC.

Novo Advantages

• No monthly fees and free incoming and outgoing ACH payments;
• No fees for both incoming domestic and international wire payments;
• Refunds at all out-of-network ATMs;
• Savings and cashback rewards at select stores;
• Large library of easily-integrated apps and software;
• Integrated with Wise for wires and with Stripe for instant payouts.

Novo Disadvantages

• Does not initiate outgoing wire transfers;
• Insufficient funds charge of $27;
• Must purchase a money order to deposit cash;
• No business loans or credit cards.

Runner Up

Bluevine is probably Novo's biggest competitor in the business bank account industry. It biggest value proposition over Novo is its 1.2% APY on balances up to $100,000 and its access to business loans.

In terms of fees, BlueVine has a very low fee schedule, except for a $15 fee to initiate a domestic wire transfer. Like Novo, you will be charged a fee for making cash deposits.

In short, Bluevine will have better tools if you are looking to take on debt while Novo's technology is better integrated to e-commerce, payment processors, and accounting software.

Best Nationwide Business Bank in California: Capital One

Capital One is a solid option among large American banks thanks to its fee transparency and high-quality banking apps. Capital One has no physical branches in California, but you can apply online. All big American banks like Bank of the West and Wells Fargo will charge maintenance fees, unless you maintain a certain minimum deposit limit.

We only recommend these kinds of bank accounts for established businesses who are seeking advanced financial services, like loans up to $5 million, capital management, or escrow services. Otherwise, we recommend digital banking platforms for most small business owners.

Capital One is a technology leader in the American banking industry. Its business checking account is connected with Capital One's great mobile app. You account will accept major credit cards and gift cards, including contactless, PayPal, ApplePay, and Google Pay. As an FDIC-insured bank, Capital One also offers safe wealth management services and SBA loans.

Unlike the digital finance platforms recommended on this page, Capital One and other big banks offer lines of credit and credit cards. You may apply for loans between $10,000 to $5 million with Capital One for real estate, cash flow, or other investments. Capital One offers some of the best credit cards in the industry too.

Be aware that you will be charged for domestic outgoing wires, Cashier's Check transactions, and all international wires. International wires with Capital One are very expensive, which is why we recommend you run a search on our international money transfer comparison engine instead.

Capital One Advantages

• Monthly fee waived if balance is over $2,000;
• Deposit $5,000 in cash per month without fees;
• Offers payment protection;
• Provides SBA loans, credit cards, and real estate terms.

Capital One Disadvantages

• Outgoing int'l wire cost: $40 + FX markup. Find cheap alternatives.
• Charges monthly maintenance fee;
• No physical branches, although they run Capital One cafes;
• ATM withdrawals only free in the Capital One network.

Runner Up

Chase Bank is one of the most popular and widely recommended business bank account in California and across the US. Banks like Chase that have many brick and mortar branches across California may be useful for in-person service and customized banking.

It is highly advised that you speak to bank professionals about how to finance your small business. But in terms of user-friendly and 24/7 digital service, however, we recommend financial platforms like Novo and Revolut Business to streamline your financing activities.

Best Credit Union for Business in California: Los Angeles FCU

If you are a business seeking a loan or line of credit, we sometimes like to recommend credit unions over the big banks. Credit Unions are often community-based, and have criteria for joining (such as be affiliated with the military to join the Navy FCU). Credit Unions typically charge lower rates for loans and pay higher rates on savings. Many promote financial literacy, and engage in philanthropic activities within their member's communities or neighborhoods.

Federally Insured by the NCUA and an Equal Housing Lender, Los Angeles Federal Credit Union (LAFCU) is a sizable credit union with assets totaling $1.2 billion and providing banking services to its members.

When you find the right credit union for you, you can work with their team in California to help you find and secure the best business loan for you. These include loans for commercial real estate, vehicles, construction, and equipment.

LAFCU Advantages

• Local business financing with customer support;
• Offers business loans and credit cards;
• Free Checking has no monthly maintenance fee;
• Insured by the NCUA.

LAFCU Disadvantages

• Lacks integrations with web tools or accounting software;
• No foreign currency capabilities;
• Not equipped for business with high transactions.

Best Business Account for Global Team Management: Revolut Business

Revolut is a UK-based neobank that provides entrepreneurs in California doing business overseas with powerful international banking capabilities. You will get account numbers for US dollars, British pounds, and several other currencies. The neobank app is ideal for international money transfers, team cards for spending, and multi-currency accounts to hold foreign-denominated currency.

Revolut Business offers a mobile checking account and debit card in partnership with Metropolitan Commercial Bank and its savings and APY with Sutton Bank (making it fully FDIC-insured).

You can start Revolut Business for free, although the standard plan sets very low fee-free allowances. You will be charged a monthly fee for upgrading to the upper three tiers, which raise the free allowances for local payments and foreign exchanges. Revolut Business is ideal for teams that do business globally because the account allows you to hold and exchange 28 currencies, give your team members debit cards for free, and top up those cards in 150 currencies.

If you are a freelancer, then Revolut Business has plans for you that range from free to $9.99 a month to $39.99 a month.

Revolut Business Advantages

• Foreign exchange is done at the mid-market rate;
• Hold and exchange 28 currencies, and get paid like a local in the UK;
• Provide cards to your team, and manage company-wide expenses;
• Connect to apps and accounting software for your business;
• Creates and tracks your invoices;
• Accepts payments on your website;
• Provides API integrations.

Revolut Business Disadvantages

• Free plan sets low monthly free allowances;
• Grow plan costs $39.99 per month;
• Enterprise plan costs $149.99 per month;
• Free limits are set on domestic and international wire payments;
• No business loans or credit cards.

Runner Up

Wise Business is the business product for the famous international money transfer service, Wise. Their platform also offers invoices, payroll services, and competitive international money transfers. But, its software is not as complex as Revolut's platform. Wise does not offer multiple team cards for spending, nor can you track spending activity.

Revolut Business is also better designed to receive money from customers because it processes cards, bank transfers, and Revolut Pay. You can only receive money with Wise Business via bank transfer. Wise Business is better if you need to pay your international partners cheaply.

Best Business Account for Foreign Currency: Wise Business

Wise Business is the business product of one of the cheapest and most transparent international money transfer companies in the world. Wise was founded in the UK in 2011, and its US subsidiary partners with different FDIC-insured bodies depending on the US state in which it operates. See this list of Wise’s licenses. 

Wise Business leverages an international transfer system that will work best as a supplement to another bank account already attached to your small business. With its transparent and industry-low fees, Wise Business can save you hundreds or thousands of dollars on large transactions that you make internationally. If you need to pay a foreign supplier, receive funding from an international investor, or transfer foreign-denominated revenue into USD, then Wise Business may be your best solution.

When pay a one-time fee of $31, Wise Business will give you unique international bank account details such as a European IBAN and a UK sort code. This platform is highly recommended by Monito if you want to save money when paying international suppliers.

Wise Business Advantages

• Use real exchange rate to withdraw revenue in foreign currency;
• Get bank account details in 10 currencies (USD, GBP, EUR, JPY);
• Batch pay up to 1,000 invoices and salaries at once;
• Industry-low fixed fees per international transfer payment;
• No monthly fees.

Wise Business Disadvantages

• Optional one-time fee of $31 to get the 10 bank account details;
• Minimal accounting software integrated;
• Local ACH transfers are not free;
• Not recommended to process customer payments.

Runner Up

The best service, especially for international e-commerce businesses, is Payoneer. Unlike Wise Business, you will get connected to the world's most popular marketplaces. Get paid by customers into bank accounts denominated in 8 currencies. Even get access to working capital advance.

Payoneer expands your reach to online customers around the world, allowing you to get paid in their local currency. When you are ready to deposit your revenue into your home account in USD, Payoneer will exchange the currency at the real mid-market exchange rate. You won't have to worry about any hidden exchange rate margins. Instead, Payoneer charges a fixed fee of up to 2% per international transfer.

Recapping the Best Banks for Small Business in California

Here is a quick summary of the best banks for small business owners across California, from San Francisco to Sacramento.

1. Novo — 🏆 Best overall business checking account
2. Capital One — 💸 Best for traditional finance services
3. LAFCU — 🏦 Largest credit union in California
4. Revolut Business — 👥 Best for (international) team management
5. Wise Business — 🌎 Best for making payments in foreign currency