Pacific Western Bank Review

Pacific Western Bank is a financial institution that primarily caters to businesses. But it also offers a suite of deposit accounts for personal use.

The California-based bank has dozens of branches throughout the state, one branch in Denver, Colorado, and one branch in Durham, North Carolina.

It’s important to note that Pacific Western Bank recently announced a merger with Banc of California. All of the details aren’t public yet. But the bank expects to make the transition in late 2023 or early 2024. 

Pacific Western Bank offers a wide range of financial products. You’ll find everything from cash sweeps and asset management to business and personal deposit products. The bank also offers a wide range of business lending products. But for the purposes of this review, we will focus on the personal and small business deposit products. 

Business High Yield Savings Account

Pacific Western Bank offers high-yield business savings account with a very competitive 5.15% APY as of writing. The catch is that you must maintain a minimum balance of $5,000 to earn this level of interest. And while many businesses qualify, HOAs and property management companies aren’t eligible for the account. 

In addition to this HYSA option, business owners can access four other savings accounts, including a money market account, simplified pension plan, business savings account, and certificates of deposit (CDs). 

Here’s the breakdown of competitive CD rates:

• Earn 5.25% APY on a 5-month CD.
• Earn 5.35% APY on a 7-month CD.
• Earn 5.50%APY on a 13-month CD.

Business owners looking to put their business savings to work can find a lot to like about Pacific Western Bank’s options.

Business Checking Accounts

Business owners can tap into four different business checking account options through Pacific Western Bank. Here’s a closer look at each:

• Business analysis checking account: Designed for businesses with a high volume of transactions, this checking account can help you closely monitor monthly costs. 
• Zero balance accounts (ZBAs): ZBAs allow you to route multiple income deposits to multiple individual accounts into a single account, allowing you to simplify your account reconciliation and eliminate the need for manual transfers. 
• Small business checking: With up to 200 transactions permitted in your account per month, this account will fill the needs of many small business owners. 
• Small business interest checking: Sole proprietors and non-profits can enjoy an interest-bearing checking account through Pacific Western Bank. 

Specialized Business Services

The right banking experience can be a game-changer for a growing business. Pacific Western Bank offers several products tailored for different kinds of businesses. Here’s a look at some of those specialized opportunities:

• Startup services: Pacific Western offers startup services to new entrepreneurs. Key features include a 4.95% APY on up to $5 million in deposits after your closed seed round, a dedicated support team, free checking services, and access to an unsecured credit card limit of up to $30,000. 
• Small business: Pacific Western Bank offers merchant services and competitive lines of credit. 
• Mid-market business: You’ll find a wide range of financing options designed specifically for mid-market businesses. 

Personal Deposit Accounts With Attractive Rates

Pacific Western Bank offers a wide range of personal accounts. Here’s a look at the standouts:

• Money market account: Pacific Western Bank has partnered with Raisin to offer a money market account with an APY of 5.25%. You’ll only need $1 to get started. 
• High-yield savings account: As of July 2023, you can tap into a 5.15% APY with this HYSA. But you must maintain a minimum balance of $5,000 to get the high rate.  
• Value interest checking account: Through this account, you can earn interest and unlimited check writing. However, there is a monthly fee of an undisclosed amount, which can be waived by maintaining an undisclosed account balance. 
• High-yield checking: You can earn more interest through this checking account than the value-interest checking. However, the APY is undisclosed and there is a monthly fee involved. 

Pacific Western makes reference to a waivable monthly fee attached to many of its accounts. But it is unclear what these fees are or what you need to do to waive them. The bank’s website mentions that you can find this information in the ‘Schedule of Fees.’ While that document must be available to account holders, it isn’t easily found on the website. 

Pacific Western Bank isn’t the only option for businesses and individuals. Here’s how it stacks up to the competition.

Navy Federal Credit Union is open to military members, veterans, and their families. It offers deposit accounts for both businesses and individuals. In terms of an interest-bearing checking account for businesses, Navy Federal is offering 0.95% APY. But the minimum balance requirement to earn interest is lower at $2,500.

If you are a freelancer or self-employed individual looking flexible no-fee banking, I can’t recommend Pacific Western Bank. Instead, check out an online bank like Found, which offers a no-fee business checking account that’s packed with features for solopreneurs.

You can get started with Pacific Western Bank by filling out an information form online. Be prepared to provide your name, email, address, and phone number. According to the form, a representative should reach out within 48 hours to finalize your account setup. 

Pacific Western Bank is a member FDIC, which means that the funds in deposit accounts are protected for up to $250,000. Beyond that, the bank has several security measures in place to protect your funds, such as bank-level encryption. 

If you need to get in touch with Pacific Western Bank, you can send a secure message through your bank account or call 800-350-3557 during banking hours. You can also fill out a contact form and Pacific Western will respond. Of course, you can always stop by your local branch. 

Pacific Western Bank offers a suite of products to both individuals and businesses. If you are in the market for a savings account with a top-notch APY, then Pacific Western might be right for you.

Unfortunately, Pacific Western provides little to no detail about it’s products, including the fees it charges, on its website. The lack of transparency is disappointing, and doesn’t instil confidence compared to other banks. 

The bottom line? Pacific Western bank won’t be the right fit for every business owner. If you are a solo entrepreneur or freelancer, you’ll find better products from online banks like Lili and Found.  

Check out Pacific Western Bank here >>