Best Banks in California in 2024

Whether in California or Kalamazoo, a good bank should provide competitive financial products alongside top-notch customer service. However, even when you find one that does that, it may not offer the right combination of accounts, rates, fees, and service for you. To jumpstart your bank hunt, check out this list of California’s best banks in 2024.

Best banks in California compared

Our recommendations

Best for online-only banking: SoFi

Many Californians are familiar with SoFi Stadium, home of the Los Angeles Rams and Chargers. SoFi is an excellent online-only bank offering comprehensive banking, investing, and lending services. SoFi Checking and Savings accounts are good choices for someone wanting high interest rates and low fees. These may be the best high-yield checking and saving accounts on this list.

With direct deposit to a SoFi checking account, you qualify for higher interest rates on both checking and savings balances. There are no monthly fees, minimum balance requirements, overdraft fees, or ATM fees (though you may pay a fee charged by a non-affiliated ATM).

Accounts

• Checking.
• Savings.

Branch locations

• None (SoFi is online only).

Best for all banking needs from a single bank: Chase Bank

JP Morgan Chase is the largest bank in the United States and, indeed, one of the largest financial institutions in the world. It operates more than 4,700 branches, with 859 locations in California. Chase offers just about anything you may want from a bank, including a diverse array of bank accounts, investment accounts, and lending products.

Chase bank accounts tend to come with higher fees and lower interest rates than online banks, but it has excellent customer service, and odds are there is a branch near your home or office. You can avoid monthly service charges by maintaining specific minimum balance requirements.

Accounts

• Checking.
• Savings.
• Certificates of deposit (CDs).

Branch locations

• There are 859 branches in 382 different California cities.

Best for online banking with occasional branch visits: Capital One

Capital One works well as an online bank, offering extensive features and above-average interest rates for its bank accounts. It operates 278 branches and cafés in the U.S., including dozens in California. The cafés are an unusual type of bank branch that includes a coffee shop and workspace. However, most people won’t need to visit a Capital One branch to handle their banking.

360 Checking and 360 Savings are among the best bank accounts nationwide. The checking account has no fees, and you can make withdrawals at more than 70,000 ATMs with no fees. You can choose among several methods of handling overdrafts, none of which require additional charges. Customers can also add cash to their accounts at CVS and Walgreens locations, a useful feature.

Accounts

• Checking.
• Savings.
• CDs.

Branch locations

• There are about a dozen locations around California, primarily in the Los Angeles and San Francisco Bay areas.

Best for local branches: U.S. Bank

Having recently merged with Union Bank to become the fifth-largest bank in California (with about 750 branches in the state), U.S. Bank now operates more than 2,000 branches in 26 states and is also the fifth-largest bank in the United States. It’s a full-service bank offering a wide range of accounts, credit cards, and loan products.

While the account offerings are diverse, as with other traditional banks that have brick-and-mortar locations, fees can be high, and interest rates are unimpressive for checking and savings accounts. Overdrafts don’t incur fees in some situations. U.S. Bank operates a sizable ATM network, but you may pay fees when using out-of-network ATMs. It could be the right choice if you’re looking for a bank with in-person customer service.

Accounts

• Checking.
• Savings.
• CD.
• Money market.

Branch locations

• There are approximately 750 branches in California.

Best for low fees: Chime

Chime is an online-only bank offering accounts with extremely low fees. There are no monthly fees or minimum balance requirements, and you won’t pay any overdraft fees. In fact, the only fee Chime charges is for using out-of-network ATMs.

The checking and savings accounts are simple and straightforward. An unusual feature is called “Spot Me,” where Chime will cover up to $200 in overdrafts while maintaining no overdraft fees. It works with an ATM network offering more than 60,000 no-fee ATMs at Walgreens, CVS, 7-Eleven, and Circle K locations. Chime could be the best choice if you want an online account and don’t want to pay fees.

Accounts

• Checking.
• Savings.

Branch locations

• None.

Methodology

To choose the best banks in California, we reviewed a long list of institutions and their types of accounts, interest rates, and fees. We aimed to pick banks with the best combination of accounts and features for the typical customer.

More about the best banks in California

This list of the best banks in California doesn’t include all possible options. The state is home to more than 100 banks and credit unions, and you can choose from a selection of online banks operating nationwide as well.

The California Department of Financial Protection and Innovation (DFPI) regulates banks in the state. Banks nationwide also fall under regulations set by the Federal Reserve and the Consumer Financial Protection Bureau.

Types of banks in California

You can find several types of banks and other financial institutions in California. Here’s a look at some of the most common.

• Major national banks. These are the big players, offering a full suite of services ranging from personal checking accounts to business loans. They're everywhere, serving both individuals and companies.
• Community banks. The heart and soul of community finance, these banks pour their efforts into supporting the people and businesses in their neighborhoods with a touch of personal care.
• Credit unions. Owned by their members, credit unions not-for-profit entities typically boast lower fees and better interest rates than banks, putting the community's welfare first.
• Savings and loans. Focused on helping people save and get into their own homes, these institutions are all about mortgages and savings accounts.
• Online banks. With no brick-and-mortar branches, these modern entities operate online only, offering attractive savings rates and reduced fees through their digital platforms.
• Global banks. With roots in foreign soil but branches in California, they bring a world of banking services to both locals and internationals alike.
• Wealth management banks. Tailoring their services for the affluent, these banks specialize in investment, estate planning, and personalized financial strategies.

How to choose the right bank in California

There’s no perfect bank for everyone, but there is a best bank in California for your specific needs. Here’s what to consider when choosing a bank.

• Identify your financial priorities. Start by pinpointing what's most important to you in a banking relationship. Are you looking for low fees, high interest rates on savings, robust online banking, or strong customer service? Your priorities will guide your search.
• Choose the type of institution. Decide among a traditional bank, a credit union, an online bank, or some other financial institution. Each has its own set of benefits. Traditional banks offer a wide range of services and convenience, credit unions are member-focused with potentially lower fees, and online banks can offer higher interest rates and lower overhead costs.
• Evaluate fees and interest rates. Look closely at the fees for account maintenance, ATM use, and overdrafts, as well as the interest rates offered on savings accounts and CDs. These can significantly impact your finances over time.
• Assess the convenience factor. Consider how important physical branch access is to you, the availability of ATMs, and the quality of the online and mobile banking experience. Convenience can make a big difference in your day-to-day banking.
• Review the product and service offerings. Make sure the bank offers the products and services you need, such as specific loan types, investment services, or financial planning resources. The more your bank aligns with your financial activities, the better.

Tips on banking in California

• Shop around. With a plethora of banks and credit unions, California's competitive market is your financial playground. Dive into the variety, compare offers, and don't shy away from bargaining for better deals.
• Embrace tech. California leads in digital banking innovations. Use online and mobile platforms for everything from depositing checks to getting spending alerts. It's all about banking smarter, not harder.
• Know your rights. Stay informed about California's consumer protections. The DFPI (Department of Financial Protection and Innovation) is there to help with banking concerns, ensuring that your finances are safe and sound.

TIME Stamp: The best bank in California is the one that fully meets your needs

With this list of the best banks in California, you can navigate the crowded landscape and find the ideal bank for you. If you’re unhappy with your bank, changing to another can take some work, but it’s easier than many people realize and often well worth the effort.

Frequently asked question (FAQs)

Which California bank is best?

The best bank in California depends on your specific needs. Among our favorites are Chase Bank for its large branch network and SoFi for online-only banking.

What is the most popular bank in California?

Bank of America is the largest bank in California, with nearly 25% of all deposits statewide. Chase and Wells Fargo are the second- and third-largest banks in the state. Each holds more than 10% of deposits in the state.

What’s the safest California bank to put my money in?

Virtually all banks and credit unions in the United States are backed by insurance from the Federal Deposit Insurance Corporation (FDIC). Even if the bank goes out of business, you’re guaranteed to get your money back up to the insurance limit, which is $250,000 per depositor, per bank, per ownership category. Thus, all banks are equally safe as long as your balance is under the limit.