Finding the Best Banks in California
California is one of the largest states in the country. Residents in the Golden State have a lot of options to consider when looking for the best bank. That’s why SmartAsset put in the work to narrow down the best banks in the state. Keep reading to find the banks with the top savings and checking accounts, as well as the most accessible banks in California.
|Ally Bank Read More||1.60%||$0|| |
|Wells Fargo Read More||0.01%||$25|| |
|Bank of the West Read More||0.01%||$25|| |
|CIT Bank Read More||1.80%||$100|| |
|Zions Bank Read More||0.10%||$50|| |
|U.S. Bank Read More||0.01%||$25|| |
|Union Bank Read More||0.01%||$50|| |
|East West Bank Read More||0.01%||$1|| |
How We Determine the Best Banks in California
SmartAsset’s banking experts found the 15 most popular banks in California by number of branches available in the state. Among those, we then selected the best national and regional banks and chose the best savings and checking accounts based on their minimum balance requirements, annual percentage yields (APYs), fee structures and overall ease of accessibility.
Ally Bank: The Top Savings Account
Bank accounts with high interest rates offer strong growth potential over the long-term. So if saving money is your main desire, the 1.60% APY of the Ally Online Savings Account likely looks rather appealing. By the same token, Ally provides solid interest rates to checking customers. The bank’s Interest Checking Account has a variable interest rate that depends on whether or not your minimum daily balance is over $15,000 or not. Accounts above and beneath that marker receive a 0.50% and 0.10% APY, respectively. There are no fees or minimums incorporated with either of these accounts.
The quality of a bank like Ally is anchored in its mobile services. In turn, Ally has included an ATM locator, digital account statements, mobile check deposit, automatic bill pay and more within the confines its app. You can even send and receive money from friends and family through Zelle®, a peer-to-peer money transfer program that’s partnered with Ally. Both Apple and Android devices are eligible to download Ally’s mobile app. Between these two competing stores, the app has garnered an average rating of 4.35 stars out of 5.
The ease and availability of cash withdrawals is a major question that often follows online banks. To avoid concerns regarding this, Ally has joined the Allpoint ATM network that’s 55,000 machines strong. There is absolutely no charge associated with the use of these ATMs for Ally customers. As a backup plan, Ally provides up to $10 in out-of-network ATM fee reimbursements per statement cycle.
Best National Bank With Branches in California: Wells Fargo
Wells Fargo has more than 1,000 branch locations in California. That’s about 60 more branches than the bank with the second-most locations, Chase. However, the advantage of working with a national bank is that it also has branches across the country. Frequent travelers will find locations in 40 states (plus Washington, D.C.).
No matter what kind of kind of account you’re looking for, Wells Fargo likely has it. There are multiple savings and checking accounts, some of which are specialized for specific customers. For example, there is a checking account that is only available to teens. You can also find retirement accounts and certificates of deposit (CDs) from Wells Fargo.
Beyond bank accounts, there are also services like credit cards and auto loans. If you need more comprehensive help with your finances, Wells Fargo offers the ability to talk with a financial advisor.
Wells Fargo’s mobile and online services are also robust. Whether you want to open an account, find a loan, search mortgages or learn more about wealth management services, you can find it online.
Runner-up: Chase Bank
Best Regional Bank: Bank of the West
Bank of the West was founded in California in 1874. While it now has locations in about two dozen states, most of its branches are in the Golden State. The bank can be a good option for multiple account types: savings, checking, money market or CD accounts. It also has rewards, cash back and secured credit cards. If you need a loan for your car, RV, boat or home loans, Bank of the West can help you with that as well.
Savings accounts require a $25 minimum to open and come with a monthly fee of $5. It isn’t very difficult to waive that fee, though. The downside to the savings accounts is the relatively low interest rates. Checking accounts don’t have a minimum deposit and come with a $10 fee that you can avoid simply by making a deposit during a statement cycle. You won’t earn interest in a checking account. Money market accounts will earn you more interest than a savings account but have a higher fee (which you can also get waived). The highest interest rates come with CDs, which range in term length from 32 days up to five years.
Customers will also enjoy Bank of the West’s online and mobile banking. You can track your spending, budget, pay bills, transfer money and handle most of your finances without needing to call or visit a branch. J.D. Power also recognized Bank of the West for having the fourth highest-rated customer service in California.
Best Savings Account Rate: CIT Bank Savings Builder Account
Requirement-based savings rates can often be hard to reach, but CIT has broken that mold, to a certain degree. All you need to do to earn the bank’s 1.80% APY is maintain a minimum balance of $25,000 or more or ensure that you deposit at least $100 into your Savings Builder account each month. Those who fail to meet these specifications will see their rate shrink to 1.16%. Additionally, the account calls for an $100 initial deposit.
CIT is an online- and mobile-only bank, which is a fairly new phenomenon, but the financial institution appears to handle this set-up well. The bank’s mobile app is available for both Apple and Android devices, and it has an average rating of 3.85 stars out of 5 between the two stores. The app features all of the standards, including digital account statements and transaction histories and inter-account transfers. CIT will allow you to remotely deposit checks through the app as well.
Outside of CIT’s Savings Builder, customers can open a number of different accounts. The bank has the Premier High-Yield Savings account, a money market account and a selection of term CDs, jumbo CDs, no-penalty CDs and more.
Runner-up for Best Savings Account Rate: Zions Bank
In general, interest rates for savings accounts are slightly higher than other large banks in the area. Accounts require just $50 to open and come with a $3 monthly service fee. However, Zions Bank will waive that fee if you maintain a balance of at least $200 or if you transfer at least $25 from a Zions Bank checking account at least once per month.
There is also a Young Savers account available for adolescents and for parents who want to start saving for their children. This account has higher interest rates than standard savings account. It also has a lower minimum for opening ($5) and no monthly fee.
Another type of savings account to consider from Zions bank is its money market account. The money market accounts have no monthly fee and higher interest rates than standard savings accounts. Accounts with at least $25,000 earn even higher rates. The catch is that you need at least $500 to open an account. It is also possible to open an online money market account. This will come with a significantly higher rate than the standard money market accounts but it managing your account is limited to online and mobile banking.
Best Customer Service: U.S. Bank
With about 650 branches in California, U.S. Bank has a large presence in the state. You can also feel confident that you will receive good customer service.
According to J.D. Power’s U.S. Retail Banking Satisfaction Study in 2017, U.S. Bank ranked second. This study takes a number of factors into account, including a bank's ability to handle customer issues, the frequency of its branches, its fee schedules and its product offerings. The rating provides good insight into how a bank deals with customers.
You can also feel confident banking with U.S. Bank because it has a wide range of financial products. In addition to standard savings and checking accounts, you can open money market accounts, credit cards and a number of loans.
Best High Yield Checking Accounts: Union Bank
If you open a Union Bank Priority Banking® Checking Account, your money will earn interest at a rate of 0.01%. This rate is available no matter your account balance. Many banks offer checking accounts only to customers with high balances, or they offer accounts that don’t earn interest at all. You can also raise that interest rate significantly - to 0.05% - if you maintain a balance of at least $2,500.
This checking account gives you free and unlimited access to Union Bank’s ATMs across the world. You also get free checks and unlimited incoming wires for free.
There is a $30 monthly fee that you can waive if you have at least $50,000 with Union Bank (combined across all your accounts) or if you have a mortgage with Union Bank. Even if you can’t waive the fee, having the Priority account will allow you to waive the service charges for two personal deposit accounts, one business checking account and one IRA. So if you plan to open multiple accounts with Union Bank, a checking account could help save you money overall.
Best for Students: East West Bank
New college students can can get off on the right foot financially by working with East West Bank. With just a $100 minimum deposit, you can open a Student Plus Savings account that earns interest at 0.05%. There is a $3 monthly fee, but East West Bank will waive the fee if you have at least one direct deposit sent into the account each month.
The Student Plus Checking account also has features that help make it easier to handle your money. For example, it has no monthly maintenance fee. When you open an account you will also get a Visa® debit card. As long as you use that debit card for ATM withdrawals, East West Bank will reimburse you each month for all out-of-network ATM fees. The downside with the Student Plus Checking account is that it doesn’t earn interest. That means it may be a good idea to couple it with the savings account to better meet your banking needs.
Additional SmartAsset Bank Reviews in California
Didn't find the best bank for you? Consider the following banks in your area.