The 10 Best Banks for Small Businesses in California in 2024

In California, small business owners have access to a variety of business banking options. We have conducted an in-depth analysis of various business banking providers and what they have to offer to help you make a decision.  🏦

We compared national, regional, and digital banks (excluding credit unions) to determine the best U.S. banks for businesses in California. 

Ready to find the best bank for your small business in California? Let’s dive in! 

What should I look for when choosing a small business banking solution?

In addition to any applicable fees (like ATM fees, transaction fees, and withdrawal fees), you should consider a bank's cash flow management abilities and features, as well as merchant services. Many small business owners also prefer banks with mobile apps to keep track of account balances at all times.

You’ll also want to see what business services a bank offers. Are there business savings accounts available to open? Does the bank offer SBA loans? These are just some questions you’ll want to answer for any bank you’re looking at. 🤔

This list only includes banks with checking accounts insured by the FDIC. That said, you’ll still want to ensure that any bank you choose has FDIC insurance to protect your business finances.

There are plenty of other features to consider, so keep reading to discover more!

The best banks for small businesses in California:

Each of the California banks we assessed offers a business checking account, is FDIC-insured, and can be accessed online or in person. Several banks also have mobile apps for better online banking services. 📱

Additionally, a majority of these banks also provide other financial solutions and perks. This includes payment processing, money market accounts, and payroll services. They also offer small business loans, and business credit cards or other lines of credit. These banks can help serve all of your business needs in one place.

Here are the 10 best banks and banking platforms for businesses in California: 

1. Relay

2. Tri Counties Bank

3. Hanmi Bank

4. Bank of the Sierra

5. Bank of Stockton

6. California Bank & Trust

7. Bank of Marin

8. Bank of Southern California

9. Pacific City Bank

10. Redwood Capital Bank

Relay: best for digital-first banking

🏆 Verdict: Relay's no-fee structure, extensive financial tools, and seamless integrations make it a top choice for businesses seeking a modern, digital-first banking experience. 

With Relay, small businesses can access a full range of financial tools without having to pay extra fees. You don’t need an opening deposit to initiate a Relay account.

Banking Built for Business Owners

No account fees or minimums; 20 checking accounts; 2 savings accounts with 1.00%-3.00% APY; 50 virtual + physical debit cards. Open account 100% online.

Learn more

Relay offers no monthly fees, no overdraft charges, and low-fee or free wire transfers and ACH payments. Businesses have the flexibility to set up as many as 20 distinct checking accounts and can distribute up to 50 Visa® debit cards to their team members. Additionally, Relay savings accounts feature an attractive APY of 1 to 3%, ensuring consistent growth of your capital.

You can also effortlessly sync Relay with leading accounting tools like Xero, QuickBooks Online, and Gusto. Relay Pro simplifies your end-of-month financial tasks and streamlines cash management with automated bill pay.

Tri Counties Bank: best for comprehensive business complete banking

🏆 Verdict: With flexible account fees and a strong presence in the region, Tri Counties Bank is ideal for businesses that require a mix of traditional and modern banking services.

Established in 1975, Tri Counties Bank, based in Chico, California, provides a comprehensive range of personal, small business, and commercial banking services to customers statewide through branches and online/mobile platforms.

Over its 45-year history, the bank has been a key player in offering tailored small business and commercial banking solutions to California companies, emphasizing relationship banking through personalized products and services to support growth at different stages.

Hanmi Bank: best for a blend of values and tools

🏆 Verdict: With competitive account fees and a focus on serving the local community, Hanmi is a solid choice for businesses of all sizes.

Established in 1982 as the first Korean American bank by Korean immigrants, Hanmi Bank, headquartered in Los Angeles, California, now serves diverse communities across the United States through a network of 35 branch locations and 8 loan production offices.

As a wholly-owned subsidiary of Hanmi Financial Corporation, Inc., the bank specializes in personal and business banking, offering various lending services, including real estate, commercial, Small Business Administration loans, and trade finance lending to small and middle-market businesses.

Bank of the Sierra: best for a mix of services

🏆 Verdict: Bank of the Sierra’s diverse range of banking solutions and commitment to customer service make them a top choice in California.

Founded in 1977 in Porterville, California, Bank of the Sierra has become the largest independent bank in the southern San Joaquin Valley, with over $3 billion in assets, 500 employees, and 35 branches.

Despite its growth, the bank maintains a traditional model, offering in-person services alongside online and mobile platforms, providing a comprehensive range of financial products from savings and checking accounts to mortgages and credit cards.

Bank of Stockton: best for traditional banking excellence

🏆 Verdict: With its reasonable fees and community-focused approach, Bank of Stockton is a reliable choice for businesses in the region.

Established in 1867 and based in Stockton, California, Bank of Stockton (BOS) has consistently provided reliable banking services for 156 years, successfully navigating economic challenges, including the COVID-19 pandemic.

The bank offers traditional and digital banking services, including savings and checking accounts, CDs, and mortgage products to individual and commercial customers.

California Bank & Trust: best for comprehensive financial solutions

🏆 Verdict: With its competitive fees and a wide range of services, California Bank & Trust stands as a top choice for businesses in California.

California Bank and Trust (CB&T), operational for nearly 70 years as a full-service bank, offers personal and commercial banking, along with wealth management services. Headquartered in San Diego, it operates over 80 branches throughout the state as a division of Zions Bancorporation, ensuring FDIC-insured security.

Bank of Marin: best for personalized, local service

🏆 Verdict: With its community-driven approach and a range of banking solutions, Bank of Marin is a trusted choice for businesses in the Marin area.

Established in 1990 and based in Novato, California, Bank of Marin, with $2 billion in assets and deposits, operates as a large financial institution with a community focus on serving local businesses in Marin County and the Bay Area.

Offering a wide array of financial products, including personal and commercial banking, the bank emphasizes both in-person services and online/mobile platforms, providing a convenient and comprehensive banking experience.

Bank of Southern California: best for in-branch customer experience

🏆 Verdict: With no account fees and a focus on serving the local community, Bank of Southern California is a top choice for businesses prioritizing customer experience.

Established in 2001 and headquartered in San Diego, CA, Bank of Southern California is a locally owned and managed commercial bank that provides comprehensive financial services for small and medium-sized businesses.

Despite offering a wide range of products similar to national banks, its focus on being a local community bank allows for added flexibility and customized financial solutions to meet the specific needs of its customers.

Pacific City Bank: best for traditional values with modern conveniences

🏆 Verdict: With its competitive fees and a strong local presence, Pacific City Bank (PCB) is a reliable choice for businesses in California.

PCB, a California-based community bank, is the third-largest Korean American Bank, serving primarily the Korean-American community. Established in 2003, it has expanded to eight states and operates through 12 branches and eight loan production offices, offering a range of loans to small to medium-sized businesses and collaborating with local leaders to enhance community life.

Redwood Capital Bank: best for a community-focused approach

🏆 Verdict: With its reasonable fees and commitment to the local community, Redwood Capital Bank is a top choice for businesses in the Redwood region.

Established in March 2004, Redwood Capital Bank is a local community banking option in Humboldt County, California, with branches in the Eel River Valley, Arcata, and Henderson Center, Eureka.

With a personal approach and four branches, the bank offers business checking and savings accounts, is a comprehensive commercial lender, and emphasizes local decision-making, reflecting its commitment to the community's financial well-being.

Final verdict: What’s the best bank for small businesses in California?

After reviewing the top banks for small businesses in California, it’s clear that each bank offers unique benefits and features. So which one is the best overall?

The answer ultimately depends on your business’s specific needs and preferences. However, if you’re looking for convenient digital banking and you want to avoid those pesky fees, Relay would be a great choice for you! 💚

The best part is that you can apply for an account in minutes online, without having to go in person to a branch. Open a business bank account with Relay here.

Banking Built for Business Owners

No account fees or minimums; 20 checking accounts; 2 savings accounts with 1.00%-3.00% APY; 50 virtual + physical debit cards. Open account 100% online.

Learn more

Want to explore more options for your business bank account? Compare Relay with traditional national banks like Wells Fargo, Chase, and Bank of America.