HomeStreet Bank Business Checking Review 2023
This article is part of a larger series onBusiness Banking.
For business owners with modest transactions, HomeStreet Bank is a great choice. It provides two small business checking account options that feature low and waivable monthly fees, free online banking access with an optional bill payer, mobile banking, and no cash deposit fees. Sole proprietors can also generate interest from the Business Advantage checking account.
HomeStreet Bank operates full-service branches in California, Hawaii, Oregon, and Washington.
HomeStreet Bank
What We Like
- Low and waivable monthly fees
- No cash deposit fees
- Offers an interest-earning account, Business Advantage
Drawbacks
- Steep minimum opening deposits
- Branches limited to California, Hawaii, Oregon, and Washington
Features
- Free debit card
- Online and mobile banking
- View account balances, transfer funds, pay bills, and deposit checks using the mobile app
- Direct Connect service that integrates with QuickBooks and Quicken
- Wide array of bank products include business savings, credit cards, and lending
How HomeStreet Bank Stacks Up With Its Competitors
Annual Percentage Yield (APY) |
Cash Deposit Fee |
ATM Fee |
Minimum Opening Deposit |
|
---|---|---|---|---|
Business Basics |
None |
None |
None at HomeStreet Bank ATMs and MoneyPass ATMs; $1.50 per transaction at non-affiliated bank ATMs |
$300 |
Business Advantage Fundamentals Banking |
N/A |
Up to $7,500 per month free, then 30 cents per $100, per statement cycle |
None at 16,000-plus ATMs nationwide; $2.50 per transaction out-of-network |
$100 |
Business Complete Banking |
N/A |
Up to $5,000 for free, then 2.50 per $1,000, per statement cycle |
$2.50 per transaction at any non-Chase ATM, plus ATM operator fees |
None |
When HomeStreet Bank Is a Good Fit
- Sole proprietors with low monthly transactions:HomeStreet Bank’s checking accounts are ideal for sole proprietors with minimal needs. You get 50 free checks per statement cycle under its Business Basics account and 100 free checks with its interest-earning Business Advantage account.
- Cash-intensive businesses that require frequent deposits:The bank imposes fees only on checks (after the free transaction limit is reached); there are no charges for depositing cash.
- Small businesses that want low and waivable monthly fees:Business Basics and Business Advantage checking accounts charge $10 and $8 monthly fees, respectively, if you fail to meet the required balances to waive it.
- Businesses seeking access to business financing:With HomeStreet Bank, you get a variety of lending options, fromSmall Business Administration (SBA) loansandlines of creditto professional loans for doctors and lawyers.
- Businesses that want accounting software integration for efficient account reconciliation:HomeStreet银行的直接连接服务,娱乐onciling your accounts is automatic since fund transfers and bill payments can be done throughQuickenorQuickBooks. This service requires enrollment and bank approval.
When HomeStreet Bank Is Not a Good Fit
- Businesses located outside HomeStreet Bank’s service area:HomeStreet Bank’s branches are situated only in four states: California, Hawaii, Oregon, and Washington. If you require in-person banking, it’s best to consider providers with a broader service area, such as Chase, Bank of America, or U.S. Bank.
- Businesses that want a higher APY:Currently, HomeStreet Bank’s Business Advantage checking account earns 0.10% APY. This is rather low in comparison to fintechs and online banks like Bluevine, Axos Bank, and Grasshopper Bank, which offer APYs ranging from 1.01% to 2.00%, provided conditions are met.
- Businesses that prefer not to pay high minimum opening deposits:HomeStreet requires $300 as an initial opening deposit for its Business Basics checking account. Citibank only asks for a minimal $1 to open a checking account, while Silicon Valley Bank has no required opening deposit.
HomeStreet Bank Business Checking Overview
HomeStreet Bank Business Checking Requirements
HomeStreet Bank requires all business checking accounts to be opened in-branch. You can call your nearest branch to ask for the relevant documentation prior to your visit.
Before opening an account, see our guide onhow to open a business bank account, which includes a free downloadable checklist of required documents.
HomeStreet Bank Business Checking Features
HomeStreet Bank’s business checking accounts provide online and mobile banking access, an option to earn interest, and integration with accounting software for easy account reconciliation.
Interest-Bearing Account
Business owners can open a Business Advantage account that earns APY, with a current rate of 0.10%. The interest is compounded monthly and credited to the account on the last day of the statement cycle. Rates can vary for different states and are subject to change at any time.
Business Online & Mobile Banking
You can check your account balances online, transfer funds, pay bills, and deposit checks using your mobile device. Business online banking is free with an optional bill payer.
Reviews for HomeStreet Bank’s business mobile banking app are generally positive onApp Store(4.6 out of 5) andGoogle Play(3.6 out of 5). Users find it easy to use and convenient, letting them skip bank trips, and negative feedback includes repetitive and time-consuming instructions for depositing checks.
Cash Management Services
- Collecting and disbursing funds:Automated clearing house (ACH) origination, branch deposits, cash concentration, cash vault/armored car, lockbox, wire transfers, Merchant Bancard Services, remote deposit capture, Check2ACH, business credit cards, and corporate purchase cards
- Managing funds:Cash sweep, loan sweep, and zero balance accounts (ZBA)
- Information:Account analysis, Positive Pay, ACH Positive Pay, check images on CD-ROM, e-statements, e-notices, and electronic data interchange (EDI) reporting
Remote Deposit Capture
Business owners can save time and deposit checks directly from their computer or mobile device. HomeStreet offers Merchant Capture, where a check scanner is used for high-volume check deposits (beyond 20 per month). If you process a low number of checks, you can use your iOS or Android device.
Direct Connect
You can save more time, avoid manual entries, and prevent duplicate transactions by enrolling in Direct Connect. It lets you download all bill payments and transfer funds between your HomeStreet Bank accounts usingQuickenorQuickBooks. Your data reconciles automatically since the Direct Connect files can be opened within the accounting software.
Note thatDirect Connect enrollmentis subject to bank review and approval.
Other Business Checking Account/s
HomeStreet Bank offers a Business Analyzed checking account, Interest on Lawyers’ Trust Account (IOLTA), and Interest on Real Estate Trust Account (IRETA).
Other Banking Products
HomeStreet Bank has a wide array of business banking products, from savings accounts to credit cards and business loans:
- Business savings:With a $200 minimum deposit, you can open a business savings account that allows you to earn interest. Theratescan vary per state and are subject to change without notice. No minimum balance is required to earn interest, but you need to maintain a $200 daily balance in your account to waive the $1 monthly fee.
- Money market:HomeStreet Bank offers two types of business money market products. Theratesmay vary per state and are subject to change without notice.
- Business Money Market:For a $1,000 minimum deposit, you can open a high-yield account. No minimum balance is required to earn interest, but you need to maintain a $1,000 daily balance in your account to waive the $5 monthly fee.
- Business Money Market Special Account:For guaranteed high fixed interest, you can open this account with a minimum deposit of $100,000. Funds to open must be new money or funds not currently on deposit with HomeStreet Bank by the account holder. To waive the $5 monthly fee, you need to maintain a $1,000 daily balance in your account.
- Insured Cash Sweep Account:Business owners with excess cash balances can earnreturnsthrough this account. Your funds are protected by multimillion Federal Deposit Insurance Corporation (FDIC) insurance. The monthly service charge is $75.
- Business credit cards:The bank has different business credit card options available and features free online expense reporting tools. No fees are charged for requesting additional employee cards.
- Business Cash Preferred Card offers 3% cash back if you use it at gas stations, cellphone providers, and office supply stores, including restaurants. For other eligible purchases, you can earn 1% unlimited cash back.
- Business Card lets you save on interest with its extended low rate.
- Smart Business Rewards Card provides 2x points per $1 spent from your top two spending categories. You also gain 1 point per month per $1 spent on your other eligible purchases.
- 业务实际奖励卡片可以赚1.5points each month for every $1 you spend on eligible purchases.
- SBA lending:HomeStreet Bank offersSBA 7 (a)real estate loan & SBA 7 (a) business loan,SBA 504,SBA Express, andSBA CAPLines. These come with lower down payments and longer terms.
- Streamlined business lending:Business owners can take up loans for different business needs. The bank offers a working capitalline of credit,equipment loan、不可循环信用额度和业主real estate loan.
- Professional practice lending:HomeStreet Bank helps medical doctors, dentists, veterinarians, and lawyers grow their practice through 80% to 100% financing for office expansions, acquisitions, or working capital. The terms can range from seven to 15 years with competitive rates.
- Commercial lending:The bank offers several business solutions, such as owner-occupied real estate loans, lines of credit, and term loans.
- Commercial real estate (CRE) lending:For property acquisitions, refinancing, construction, or rehabilitation, you can apply for a permanent loan, Fannie Mae DUS loan,bridge loan, or construction loan. The loan size starts at $2 million and reaches up to $100 million with a floating or fixed rate.
- 建筑商建设融资:HomeStreet Bank also provides builder construction financing through construction loans, lot acquisition loans, and land development loans.
- Industry solutions:HomeStreet serves banking solutions to nonprofit organizations, manufacturing businesses, and property management firms/homeowners’ association (HOAs).
HomeStreet Bank Business Checking Pros & Cons
PROS | CONS |
---|---|
No cash deposit fees | Customer service limited to weekdays |
Has Direct Connect for easy and automatic bank reconciliation | No ATM fee refunds |
Multiple business lending options | No free wires |
HomeStreet Bank has two superb business checking accounts offering fee-free cash deposits. It also features Direct Connect, where transaction data are synced automatically with your accounting software for easy bank reconciliation. If you need more business capital or equipment and real estate funding to grow your business, several financing options are available.
However, the bank doesn’t provide free wire transfer services. Also, its customer service business phone support is available only from Mondays to Fridays, making it inconvenient for account holders needing banking resolutions on weekends.
HomeStreet Bank User Reviews
PROS | CONS |
---|---|
Friendly and helpful loan officers | Cases of mortgage loans being sold to another bank |
Quick and convenient loan process | Cases of checks being held for two weeks |
Higher interest rate on savings account compared to other banks | Bad customer service experiences |
No hidden fees | Digital banking needs improvement |
Convenient location | Loans are not military-friendly |
HomeStreet Bank has mixed ratings from WalletHub (4.9 out of 5) and Yelp (2.5 out of 5). Users like the responsive customer service, efficient loan procedure, and high APY on savings. However, there are instances where users encountered their mortgage loans being sold to another bank and long check holding periods. They also wished for a better online and mobile banking system.
Alternatives to HomeStreet Bank Business Checking
If you want more branch access, no wire fees, and a high APY, you can consider the following banks:
- Chaseis best for business owners needing in-person banking in more areas since its branch presence covers 48 states.
- Mercuryis best for businesses sending and receiving wires frequently. Its incoming and outgoing wire transfers are free, whether domestic or international.
- Axos Bankis best for businesses wanting to save on ATM fees with its unlimited domestic ATM fee refunds.
Check out more providers in our list of thebest small business checking accounts.
Bottom Line
HomeStreet Bank is ideal if your business is based in California, Hawaii, Oregon, and Washington since account opening is done at a branch. Business owners with a limited number of check transactions every month can open the Business Basics checking product, while sole proprietors preferring to earn interest can opt for a Business Advantage checking account. HomeStreet Bank lets you save with its fee-free cash deposits, making it a sound choice for small business owners.