California, being one of the largest states in the country, offers residents numerous options for personal banking. Banks in the Golden State provide a wide range of products to meet various needs, including competitive interest rates on savings accounts, reasonable bank fees, and modern conveniences.
To help you find the best options, I’ve done the research to narrow down the top banks in California. Keep reading to discover the banks with the best savings and checking accounts, as well as the most accessible banking options in the state.
>> Apply for an Axos Account Today! >>
Best Personal Banks in California
Axos – Best Personal California Banks OverallChime – Best User-Friendly InterfaceSoFi – Best for Saving AccountsBank of America – Best for Opening a Checking AccountUpgrade – Best for Personal LoansS. Bank – Best Customer ServiceDiscover – Best CD Rates Axos – Best Personal California Banks OverallAxos Bank
Axos stands out as one of the few online business banks that make it easy for business owners to deposit cash. Account holders can use any compatible Allpoint or MoneyPass ATM to make deposits without additional fees. Moreover, if you’re ever charged an ATM fee in the U.S., Axos will automatically refund it.
Pros
No monthly fees or minimum opening deposit
Unlimited fee-free transactions and free incoming wires
Automatic refunds of all domestic ATM fees
Cons
No APY on Essential Checking account
Limited brick-and-mortar branches
Low APY on Money Market and CDs compared to other banks
>> Axos – Top Personal Bank California >>
Chime – Best User-Friendly InterfaceFor California residents, Chime Bank is an excellent option for personal banking due to its user-friendly features, extensive ATM network, and innovative financial tools.
Chime has become a popular choice among online banks, appealing to tech-savvy users and those seeking to avoid traditional banking fees.
Chime offers an early direct deposit feature, allowing users to access their paychecks up to two days earlier than traditional banks. This provides quicker access to funds and greater financial flexibility.
With access to over 60,000 fee-free ATMs through the Allpoint and MoneyPass networks, California residents can easily find an ATM without additional fees, making cash withdrawals convenient.
Pros
No monthly maintenance, overdraft, or foreign transaction fees
Access your paycheck up to two days early
Competitive APY for faster savings growth
Cons
Entirely online, which may not suit everyone
Cash deposits must be made at Green Dot locations, possibly incurring fees
>> Apply for a Chime Bank Account Today! >>
SoFi – Best for Saving AccountsOne of SoFi’s main attractions is its high-interest savings accounts, which offer competitive rates that significantly outperform many traditional banks. This makes SoFi particularly appealing to those looking to maximize their savings. Californians choosing SoFi can grow their savings faster and reach their financial goals more efficiently.
SoFi also offers a range of member benefits designed to enhance customers’ financial well-being. These include access to career coaching, financial planning, and exclusive events. SoFi members gain valuable resources and support to help them achieve both personal and professional goals.
Pros
Competitive interest rates on savings accounts, helping your money grow faster
No monthly maintenance fees, overdraft fees, or minimum balance requirements
Wide range of financial products, including student loan refinancing, personal loans, mortgages, and investment options
Cons
Primarily an online bank, which may not suit those who prefer in-person banking
Less convenient for cash deposits compared to traditional banks
Some users may prefer face-to-face interactions for complex issues
>> Apply for a SoFi Bank Account Today! >>
Bank of America – Best for Opening a Checking AccountBank of America (BofA) is a strong option for personal banking in California for several reasons. As one of the largest and most established financial institutions in the United States, BofA offers a range of benefits that cater to various banking needs.
For those who prefer in-person banking, Bank of America provides substantial convenience. With nearly 450 branches across California, you can easily find an ATM or get access to in-person assistance when needed.
Although their savings APY isn’t as high as what online banks offer, Bank of America provides a wide range of other financial products, including credit cards, home and auto loans, and investment services through Merrill.
Pros
Convenient access to numerous branches and ATMs across the state
Comprehensive product offerings, including checking/savings accounts, credit cards, loans, mortgages, and investments
User-friendly online and mobile banking with advanced security features
Cons
Monthly maintenance fees for certain accounts if balance or activity requirements are not met
Lower interest rates on savings accounts and CDs compared to some online banks
Multiple fees for various services, which can be confusing and add up if not monitored
>> Apply for a Bank of America Account Today! >>
Upgrade – Best for Personal LoansUpgrade has become a compelling choice for personal banking in California, offering modern digital banking services with features tailored to meet the needs of today’s consumers.
One standout aspect is its high-yield savings account, which provides competitive interest rates significantly higher than those at traditional banks, making it an excellent option for individuals looking to grow their savings efficiently.
Upgrade’s strong commitment to customer service further enhances its appeal. Customers can access support through various channels, ensuring assistance is available when needed. The bank’s transparency and straightforward approach to financial products help users understand terms and conditions, avoiding hidden fees and complex agreements.
As a personal California bank account, Upgrade combines high returns on savings, accessible credit options, and excellent customer service, presenting a modern banking solution that aligns well with contemporary financial needs.
Pros
Competitive interest rates on savings accounts, offering excellent opportunities for faster growth compared to traditional banks
No monthly maintenance fees or minimum balance requirements
A range of financial products, including personal loans and the Upgrade Card, which combines features of a personal loan and a credit card for flexible spending and debt management
Cons
Operates primarily online, with no physical branches for those who prefer in-person banking
Depositing cash can be inconvenient due to the lack of a network of ATMs for cash deposits, requiring alternative methods
>> Apply for an Upgrade Bank Account Today! >>
U.S. Bank – Best Customer ServiceFor three consecutive years, U.S. Bank has earned the top ranking for Customer Satisfaction in California by J.D. Power. It boasts the lowest monthly fee among national banks, which can easily be waived. The bank’s digital tools provide a convenient banking experience, with its mobile app receiving top rankings from industry benchmarking firm Keynova Group for three years in a row.
According to J.D. Power’s 2017 U.S. Retail Banking Satisfaction Study, U.S. Bank ranked second overall. This study evaluates various factors, including how well a bank handles customer issues, branch availability, fee schedules, and product offerings, offering a comprehensive insight into customer interactions.
U.S. Bank also provides a wide range of financial products beyond standard savings and checking accounts. Customers can open money market accounts, apply for credit cards, and access various loan options.
Pros
No monthly service fee for the Silver Business Checking account
Welcome bonus for new customers (terms apply)
No fees at 4,700 U.S. Bank ATMs and access to 2,900 branches
No fees if an account is overdrawn by $50 or less
Cons
Low cash deposit limits
Terms and fees are not easily accessible on the bank’s website
Limit of 125 fee-free transactions per month
>> Apply for a U.S. Bank Account Today! >>
Discover Bank is an excellent option for personal banking in California, especially for those who value online banking convenience and competitive interest rates. One of Discover Bank’s standout features is its high-yield savings account, which offers interest rates significantly above the national average. This makes it ideal for individuals looking to maximize their savings.
Additionally, Discover’s certificates of deposit (CDs) offer competitive rates, allowing customers to lock in higher interest for fixed terms. This combination of high returns on savings products sets Discover apart from many traditional banks.
Pros
Competitive interest rates on savings accounts, significantly above the national average, helping your money grow faster
No monthly maintenance fees, no overdraft fees, and no minimum balance requirements, making it easier to manage finances without unexpected charges
Certificates of deposit (CDs) provide high returns for fixed terms, which is beneficial for long-term savings
Cons
Primarily operates online, which may not suit those who prefer in-person banking services
Depositing cash can be cumbersome, as Discover lacks a network of ATMs for cash deposits
>> Apply for a Discover Bank Account Today! >>
Best Personal Banks in California – Buyers Guide Tips on Banking in California Selecting a bank is a highly personal choice, and what works for someone else may not be ideal for you. Consider what’s most important to you in a bank, and compare your options to find the best fit.
If you prefer the personal touch of a physical bank, look for banks in your area of California that meet your needs.
While many traditional banks now offer digital banking, they often lack the competitive APYs of the best online banks. If you’re comfortable with online banking, an online bank can help you avoid fees and access higher interest rates. Credit unions can offer similar benefits if you qualify for membership.
Remember, you don’t have to do all your banking in one place. Using multiple banks could be beneficial if you like features at different institutions.
>> Start Banking With Axos >>
How to Choose the Right Bank in California Choosing the right bank depends on your financial circumstances, preferences, and needs. Consider these factors when selecting a financial institution:
Accounts and Services Ensure that the banks you’re considering offer the accounts and services you need. Common account types include checking accounts, savings accounts, CDs, and money market accounts. Full-service banks may also offer credit cards, loans, and investment services.
You might prefer to use multiple banks to take advantage of their different strengths. For example, one bank might offer excellent CD rates, while another provides more convenient in-person branch access.
Fees Banks often charge fees for various services. These can include service fees for not maintaining a minimum balance, overdraft fees, NSF fees, excessive withdrawal fees, ATM fees, late payment fees, and wire transfer fees. High fees can erode your savings.
Interest Rates Online banks and credit unions usually offer higher interest rates on deposit accounts than traditional banks. Competitive APYs can help you maximize your savings.
Convenience Accessibility is crucial. Look for a bank that makes it easy to manage your accounts. If you frequently need cash, find a bank with fee-free ATM access. A highly rated mobile banking app allows you to manage your money 24/7 from anywhere and often includes features like online bill pay and mobile check deposits.
Customer Service There will be times when you need assistance with your accounts. If speaking with a real person is important to you, choose a bank with local branches or personal customer support by phone. Some banks offer chat support, virtual assistants, and other digital support services. Select a bank with support options that align with your communication preferences.
>> Axos – Top Personal Bank California >>
Best Personal Banks in California – FAQs Are There Any Drawbacks to Using a Traditional Bank? Traditional banks often have lower interest rates on savings accounts and higher fees compared to online-only banks. However, they offer the benefit of physical branches for in-person services and cash deposits.
How Do I Switch Banks if I’m Not Satisfied With My Current One? To switch banks, start by opening a new account at your chosen bank. Next, transfer your funds, update any direct deposits or automatic payments, and then close your old account. Make sure to leave enough funds in the old account to cover any pending transactions during the transition period.
Are Online-Only Banks a Good Option for Personal Banking in California? Yes, online-only banks can be an excellent choice because they typically offer higher interest rates on savings accounts and lower fees than traditional banks. However, if you prefer in-person banking services or frequently need to deposit cash, an online-only bank might not be the best option for you.
>> Open an Axos Account Now! >>
Bottom Line California residents have numerous excellent options when choosing a new bank or credit union. For those seeking wide access and national coverage, Axos , Bank of America , Chime , and SoFi are great choices.
Ultimately, the best bank for you will depend on your individual financial goals and lifestyle. Whether you prioritize high interest rates, fee transparency, digital convenience, or robust customer service, California offers excellent options to meet your needs.
>> Axos – Top Personal Banking Services in California >>
Copyright © 2024 California Business Journal. All Rights Reserved.
