Best Banks In California For September 2022 – Forbes

The best banks in California offer a broad selection of products to meet various needs; competitive interest on savings accounts; manageable bank fees; and modern conveniences. The state’s top banks are known for their highly rated customer service, and they provide customers with convenient access from the Oregon state line to the Mexico border.

The Best Banks in California for Branches

California is home to more than 130 financial institutions, accounting for $1.19 trillion in total assets, according to data from the Federal Deposit Insurance Corp., the U.S. government agency that insures bank deposits.

The FDIC says the state’s largest deposit markets lie within California’s biggest metropolitan areas:

• Los Angeles-Long Beach-Anaheim
• San Francisco-Oakland-Berkeley
• San Jose-Sunnyvale-Santa Clara
• San Diego-Chula Vista-Carlsbad

National banks have large footprints within the Golden State. Big financial institutions Chase, Wells Fargo and Bank of America lead the banking charge within California, operating the most branches statewide.

Banks With the Most Branches in California

The Best Banks in California for Customer Service

Customer service is often just as important as attractive rates and few to no bank fees when you’re shopping for the best bank.

The following banks are the best at taking care of their California customers, according to J.D. Power’s 2022 Retail Banking Satisfaction Study. The state’s average customer satisfaction score among banks was 625, out of a possible 1,000.

Top California Banks for Customer Satisfaction

Types of Banks in California

California’s consumers have their pick of several categories of financial institutions that meet different customer preferences and needs. Here are four of the most common banking options.

National Banks

The state’s banking landscape is dominated by America’s banking giants, the huge household names with extensive branch networks. They offer wide assortments of banking products, including checking and savings accounts, mortgages, credit cards and investment services. The state’s biggest banks—namely Chase, San Francisco-based Wells Fargo and Bank of America—each hold trillions of dollars in assets.

Regional Banks

Regional banks have chains of branches confined within a part of the U.S., like the Western states or California alone. These midsize banks typically provide a mix of banking products for both consumers and businesses. The Federal Reserve defines a regional bank as one with total assets of between $10 billion and $100 billion.

Community Banks

More than 90% of America’s banks are community banks serving pinpointed geographic areas. Depositors generally live within the local community and benefit most from the banks’ lending. California’s community banks may have just one or two branches and offer only a narrow selection of banking products. The Fed says a community bank holds less than $10 billion in assets.

Online Banks

Online banks may not be what you think of when you hear “California banks,” because the banks operate virtually anywhere—digitally—instead of through traditional brick-and-mortar locations. Some online banks offer a full assortment of products and services, while others may provide only specific types of accounts. The banks usually enjoy lower overhead costs than traditional banks and often pass the savings on to customers through competitive interest rates and fewer bank fees.

How To Choose the Right Bank in California

Picking the right bank depends on your financial circumstances, preferences and needs. Consider these factors when choosing a financial institution for your banking.

Accounts and Services

Make sure banks on your shopping list offer the accounts and services you need. Common account types include checking accounts, savings accounts, certificates of deposit (CDs) and money market accounts. Full-service banks may provide additional products and services like credit cards, loans and investment services.

You may prefer to use multiple banks, to take advantage of their different strengths. One bank may offer more competitive rates, while another may provide more convenient account access.

Fees

Many banks charge one-time or ongoing fees for various services. A bank may charge a service fee for not maintaining a minimum balance each month. Other charges can include overdraft, non-sufficient funds (NSF), excessive withdrawal, ATM, late payment and wire transfer fees. Costly bank fees can undercut your savings efforts.

Interest Rates

Online banks and credit unions generally offer higher interest rates on deposit accounts than traditional banks. Scoring competitive APYs, or annual percentage yields, can maximize your efforts and build up savings toward various goals.

Convenience

It’s not just about where you put your money but also how easy it is to access your funds. Look for a bank that offers convenient ways to manage your accounts.

If you may find yourself needing cash, find a bank that offers fee-free ATM access. A highly rated mobile banking app lets you manage your money 24/7 from anywhere in the world and often comes with services like online bill pay and mobile check deposits.

Customer Service

There may be times when you need help with your accounts. If talking with a real person is important, a bank that has local branches or offers personal customer support by phone may be the right choice for you. Some banks provide chat support, virtual assistants and other digital support services. Look for a bank with support options that match your communication preferences.

Tips on Banking in California

Choosing a bank is a personal decision. The right bank for someone else may not work for your needs. Consider what’s important to you in a bank, and compare available options to find the best fit.

If you prefer the personal support of a brick-and-mortar bank, compare banks within your area of California to find one that matches your needs.

A growing number of traditional banks have started offering digital banking, but they’re often missing the competitive APYs found at the best online banks. If you’re comfortable banking online only, opening an account at an online bank can help you avoid fees while accessing higher interest rates. The same is true for credit unions if you meet membership requirements.

There’s no rule that you must do all your banking in one spot. Using two or more banks could be a great option if you like features at different banks.