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Below you’ll find our top picks for the best banks and credit unions in California.
These institutions have stayed as our top picks for the last few months because they offer a variety of bank accounts with solid features and can be opened regardless of where you live in the state.
Overview of Banking in California
Online banks are going to be your best option for banks with the best interest rates, but you won’t be able to bank in person with them. If you want to use physical branches, large banks like Bank of America and Citi will give you in-person access no matter where you are in the state, and you’ll still be able to bank in person if you ever travel outside of the state.
If you want to help your local community while you bank, credit unions like Golden 1 are member-owned and put their savings back into their local community through higher interest rates, better deals on loans, and community involvement.
Top Banks in California
To determine the highest rated banks banks in California, we reviewed the biggest banks and credit unions in the state. We also considered online banks regarding our top pick for savings accounts.
Ally: Best bank for opening a savings accountBank of America: Best bank for opening a checking accountCiti: Best bank for opening a savings and checking accountGolden 1 Credit Union: Best credit unionCompare Financial Institutions in California
The best banks in California offer accessibility throughout the state and a wide range of bank accounts.
All of the financial institutions on our list are protected by FDIC or NCUA insurance. Remember that your money is safe at a federally insured financial institution. When a financial institution is federally insured, up to $250,000 per depositor is secure in a bank account.
Best bank for opening a savings account
Ally Savings Account
Insider’s Rating
A five pointed star
A five pointed star
A five pointed star
A five pointed star
A five pointed star
4.75/5
Icon of check mark inside a promo stamp
It indicates a confirmed selection.
Perks
Fees
no monthly service fee
Annual Percentage Yield (APY)
4.00%
Minimum Opening Deposit
$0
Pros
Check mark icon
A check mark. It indicates a confirmation of your intended interaction.
High APY
Check mark icon
A check mark. It indicates a confirmation of your intended interaction.
No minimum opening deposit
Check mark icon
A check mark. It indicates a confirmation of your intended interaction.
No monthly service fees
Check mark icon
A check mark. It indicates a confirmation of your intended interaction.
Savings buckets help you save for different goals
Check mark icon
A check mark. It indicates a confirmation of your intended interaction.
Surprise savings transfers help you save extra money from your checking account
Cons
con icon
Two crossed lines that form an ‘X’.
No physical branch locations
con icon
Two crossed lines that form an ‘X’.
No way to deposit cash
Product Details
Create separate savings buckets in a savings account
Link to your Ally checking account and enroll in surprise savings transfers to have extra money transferred to savings three times per week
Interest compounded daily, paid monthly
FDIC insured
Best bank for opening a checking account
Bank of America Advantage SafeBalance Banking® Account
Insider’s Rating
A five pointed star
A five pointed star
A five pointed star
A five pointed star
A five pointed star
3.5/5
Icon of check mark inside a promo stamp
It indicates a confirmed selection.
Perks
Fees
$4.50 monthly service fee
Annual Percentage Yield (APY)
N/A
Minimum Opening Deposit
$25
Pros
Check mark icon
A check mark. It indicates a confirmation of your intended interaction.
No overdraft fees
Check mark icon
A check mark. It indicates a confirmation of your intended interaction.
3,900 branch locations and 15,000 ATMs
Check mark icon
A check mark. It indicates a confirmation of your intended interaction.
$0 monthly fees when requirements are met
Check mark icon
A check mark. It indicates a confirmation of your intended interaction.
May receive a cash bonus
Cons
con icon
Two crossed lines that form an ‘X’.
$25 opening deposit
con icon
Two crossed lines that form an ‘X’.
$2.50 out-of-network ATM fee
con icon
Two crossed lines that form an ‘X’.
Doesn’t reimburse out-of-network ATM fees charged by providers
con icon
Two crossed lines that form an ‘X’.
No paper checks
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Two crossed lines that form an ‘X’.
No interest earned
Product Details
New Bank of America customers may receive a $300 bonus when you open a new eligible personal checking account online using offer code LHR300CIS, and set up direct deposit for $2,000 or more within the first 90 days of opening the account (offer expires January 31, 2025)
Access to 4,600 branch locations and 16,000 ATMs
You can waive the $4.95 monthly service fee if you maintain a minimum daily balance of $500 or more, are under the age of 25, or if you are a Preferred Rewards client
The minimum deposit required to open a SafeBalance Banking account is $25
Best bank for opening a checking and savings account
Citi Regular Checking
Insider’s Rating
A five pointed star
A five pointed star
A five pointed star
A five pointed star
A five pointed star
3.75/5
Icon of check mark inside a promo stamp
It indicates a confirmed selection.
Perks
Fees
$15 monthly service fee
Annual Percentage Yield (APY)
See Website for Details
Minimum Opening Deposit
None
Pros
Check mark icon
A check mark. It indicates a confirmation of your intended interaction.
No opening deposit
Cons
con icon
Two crossed lines that form an ‘X’.
$2.50 out-of-network ATM fee
con icon
Two crossed lines that form an ‘X’.
BBB gives Citi an F in trustworthiness
Product Details
Earn $300 cash bonus by opening an eligible checking account and deposit at least two enhanced direct deposits totaling $1,500 or more within 90 days of account opening (offer ends 10/8/24)
Over 650 branches
Golden 1 Credit Union Regular Savings Account
Insider’s Rating
A five pointed star
A five pointed star
A five pointed star
A five pointed star
A five pointed star
4/5
Fees
no monthly service fee
Annual Percentage Yield (APY)
0.05% to 0.20%
Minimum Opening Deposit
$0
Pros
Check mark icon
A check mark. It indicates a confirmation of your intended interaction.
$1 opening deposit
Check mark icon
A check mark. It indicates a confirmation of your intended interaction.
No monthly service fee
Check mark icon
A check mark. It indicates a confirmation of your intended interaction.
Unlimited number of monthly withdrawals with no excess withdrawal fee
Cons
con icon
Two crossed lines that form an ‘X’.
Mediocre APY
con icon
Two crossed lines that form an ‘X’.
Compounds interest monthly, not daily
Product Details
Any California resident or employee can become a Golden 1 Credit Union member
Earn a higher APY with a balance of $10,000 or more
Interest compounded monthly, paid monthly
Federally insured by the NCUA
Best Banks in California ReviewsBest Bank for Opening a Savings Account
Ally pays 4.00% Annual Percentage Yield (APY), and doesn’t charge any monthly bank maintenance fees.
The Ally Savings Account has been a power player in the high-yield savings space for a few years now, and it consistently nabs top awards for online banking. Although it’s an online bank, you can use over 40,000 Allpoint ATMs for free around the US.
Ally makes it easy to save for specific savings goals. You may decide to open a separate account for each goal, but Ally has a bucket feature that allows you save for multiple goals in one account. Assign each one a nickname, like “Emergency Fund” or “Travel Account” to track your progress and stay motivated.
While Ally is extremely competitive, other banks offer similar online high-yield savings accounts. Ally is certainly one of the best out there, but depending on your needs and your existing banking, you may find you prefer a different bank, such as Capital One 360, Varo, or Discover.
Ally Bank Review
Best Bank for Opening a Checking Account
Bank of America is the third-largest bank in California by branch locations. You can receive a $100 sign-up bonus for opening a checking account with Bank of America. The bank also doesn’t charge any overdraft fees.
However, keep in mind that the bank charges an out-of-network ATM fee and you won’t earn interest on the money you deposit into the bank’s standard checking account.
Bank of America Review
Best Bank for Opening a Checking and Savings Account
Citi is one of the largest banks in California by branch locations. The bank pays large sign-up bonuses if you open certain checking and savings accounts together and meet deposit requirements.
If you open a checking and savings account and meet the deposit requirements, you may receive a bonus. You can also receive a bonus if you choose to only open either a savings or checking account.
Monthly service fees for Citi checking and savings accounts vary depending on which accounts you choose. You’ll also need to meet certain requirements to waive these fees.
Citi Review
Best Credit Union
Golden 1 is a good choice if you’re looking for a credit union in California. It’s easier to join than some of the other major credit unions in the state, like SchoolsFirst. There are also more locations around California than other prominent credit unions, such as First Technology Federal Credit Union.
To join Golden 1, you just have to either live or work in California, and you can open a Golden 1 savings account with $1.
There are 70 branch locations around California, and around 240 Golden 1 ATMs. You also have free access to 30,000 CO-OP ATMs nationwide, which is convenient if you travel out of state.
Golden 1 pays lower rates on some accounts than online banks, but higher than many brick-and-mortar banks.
Like many credit unions, Golden 1 compounds your interest monthly rather than daily, which affects how much you’ll earn in the long run. If your biggest priority is earning a good rate, then you may want to use a bank rather than a credit union, or search for a credit union that compounds daily.
Golden 1 Credit Union Review
Are These Banks and Credit Unions Trustworthy?
We review the ethics of each company so you can see if a specific financial institution aligns with your values.
We also include the settlement history of the last three years, so you’re aware of any recent public controversies involving the bank.
The Better Business Bureau grades companies based on responses to customer complaints, advertising, and transparency about business practices. Here are the BBB scores for our favorite banks and credit unions in California:
Ally received an A rating from the BBB because it has a few unresolved complaints.
Bank of America has an A rating due to government action against the bank.
Citi has an F rating due to a lack of response and resolution to customer complaints.
Bank of America does have some recent settlements. In 2023, Bank of America paid over $100 million to customers in a settlement when accused of repeatedly charging a $35 overdraft fee for the same transaction, withholding credit card rewards, and enrolling customers in credit card accounts without them knowing or authorizing it.Â
The Consumer Financial Protection Bureau also fined Bank of America for freezing customers’ accounts because its automatic fraud filter incorrectly detected fraud on accounts. In 2022, The CFPB claimed that the bank made it difficult for customers to un-freeze their accounts.
Citi was also involved in one recent public controversy. In November 2023, the Consumer Financial Protection Bureau claimed Citibank intentionally discriminated against Armenian-American credit card applicants. The CFPB ordered the bank to pay $25.9 million in fees and to applicants who were impacted.
Tips for Choosing the Best Banks in California
When you’re opening a bank account, you want to consider the following listed below, as well general requirements to join the financial institution.
Some credit unions let anyone join, but others might limit membership to people who have certain jobs or live in specific counties. When you open a bank account you’ll also need documentation to verify your identity. Some banks require a U.S. ID while others allow immigrants and non-U.S. citizens to open an account with a Matricula Consular or foreign passport.
Comparing California Banks’ Services and Fees
It’s important to consider what features you’re looking for in a bank. If you think you’re likely to overdraft your account, for example, you’ll want to look for the best banks for overdraft; they frequently don’t charge overdraft fees and offer overdraft protection services.
You’ll also want to avoid bank fees in general. If you can, open an account that doesn’t charge monthly service fees, and make sure you understand the fees that your bank does charge before you open an account with them.
Online and Mobile California Banking Features
Even if you like banking in-person, it’s useful to be able to bank online or on your phone as well. If you think you’re going to spend a lot of time banking on your phone, check your bank’s mobile banking app ratings to get an idea of what your mobile experience will be like; you’ll be able to tell whether you’re working with one of the most reliable banks in California, or if you’re working with a financial institution that has a buggy app that’s hard to use. Also take a look at the bank’s website to see if it’s overly confusing or difficult to navigate.
California Branch and ATM Accessibility
If you want to bank in person, you should also check to see if a bank has branches near you. You’ll also want to make sure your bank of choice has plenty of ATMs in your area whether you plan to bank in person or not; a bank with plenty of ATMs nearby is generally a good bank for avoiding ATM fees. That way, you won’t be forced to pay out-of-network ATM fees in case of an emergency where you need cash quickly.
Best Banks in California FAQs
When looking for California banks with the best customer service, the answer will largely depend on your needs and preferences. Citi is a big bank with many branches and 24/7 customer service, but if you are interested in a more customer-centered local experience you might prefer the customer service that a credit union like Golden 1 can provide.
There are several banks and credit unions that offer bank accounts with no monthly maintenance fee, such as Ally and Golden 1.
There are several banks in California that offer good interest rates on savings accounts, but keep in mind that online banks tend to be available regardless of where you live in the U.S. We chose Ally as the best bank to open a savings account if you live in California, but other online banks are also likely to offer good rates.
Why You Should Trust Us: Experts’ Advice on Choosing the Best Financial Institution
We consulted banking and financial planning experts to inform these picks and provide their advice on finding the best financial institution in California for your needs.
BI
We’re focusing on what will make a bank most useful, including customer service, fees, rates, and more.
How do you know if a bank is right for you?
There are a lot of options when it comes to choosing a bank, and the right bank for any one person depends primarily on what they need and expect. If it’s important that you visit a bank in person, you’ll need convenient brick-and-mortar locations.
If you plan to access your account online, you’ll want strong security and a user-friendly site or app – and you might consider an online bank. You might also be concerned about fees: If there’s a monthly maintenance fee for checking or savings, would you qualify to waive it?
A few other things to consider:
How much interest does the savings account earn? More than average?Which provider issues the debit card? Some places don’t accept MasterCard or Amex.How will this bank serve you in the future, when you have different goals and needs?How is their customer service?How tricky is it to transfer money in and out of your account?
Methodology: How Did We Choose the Best Banks in California?
Business Insider’s personal finance team looked at the banks and credit unions with the most branches in the state. Then we zeroed in on those that offered appealing features, like sign-up bonuses or high interest rates. None of the biggest banks in California paid high rates on savings accounts, so we chose an online bank, Ally, as our top choice for a savings account.
For the best credit union, we chose one that is easy for California residents to join and has branches in multiple parts of the state.
See our bank account methodology to learn more about how we rate bank accounts.
Laura Grace Tarpley, CEPF
Personal Finance Reviews Editor
Kit Pulliam
Banking reporter
Kit Pulliam (they/them) is a banking expert who specializes in certificates of deposit, savings accounts, and checking accounts. They’ve been reporting, editing, and fact-checking personal finance stories for more than four years. ExperienceIn college, Kit worked as an undergraduate research assistant in a psychology lab. While there, they found that they were passionate about writing and helping others write about topics that matter.Before Business Insider, Kit was an editorial specialist for Tax Analysts, diving into the tax code to help readers get the best information about a confusing but necessary subject.They find banking similar to taxes in that way: There are some things everyone needs to know because just about everyone needs to work with a bank — and you don’t want to end up with an account that doesn’t serve your needs.As interest rates change, they enjoy the fast pace of reviewing rates for products like CDs and high-yield savings, which can change daily and have a direct impact on readers’ money.Their work has been featured in Business Insider and MSN. They were part of the My Financial Life series with Business Insider.ExpertiseTheir expertise includes:Certificates of depositSavings accountsChecking accountsCD ratesBank reviewsEducationKit is an alumnus of Vanderbilt University, where they studied English and psychology and received the Jum C. Nunnally Honors Research Award for their senior thesis.Outside personal finance, Kit enjoys reading, film, video games, and cross stitching. They are based in the DC area.
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