How to choose a bank for a small HOA

Started by MelindaH • 4 replies • 6451 views

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MelindaH (California)
Posts: 3

Posted:

Hi. I'm the volunteer treasurer for our very small (5 unit) HOA. We currently have an account with Union Bank of California and they're killing us with fees. I would like recommendations for a good, cheap bank. I don't need any special services (but online banking would be nice), and we only have $10-15,000. How do I find banks that offer HOA accounts? Does it need to be an HOA account or can I open a business account? Is it important that it have local branches? Please help.

SwanB (Washington)
Posts: 199

Posted:

Our HOA uses a credit union and the fees are much smaller than other banks. It isn't necessary or possible to set up a HOA specific bank account. An account in your HOA's name will do but you will need your documents to set things up so call ahead, explain who your organization is and what you are trying to do; i.e open and business checking/savings account.
When you call make sure to find out if online banking is available and if there is additional charges for it.

BrianB (California)
Posts: 2,820

Posted:

You can open a simple business account, it need not be special.

I can recommend Bank of America: I have no fees, online bill pay/check writing, etc.. However, that's my personal account.

Also know that Wells Fargo courts small business accounts, as does Chase. Heck, you probably should pick one of those three, since in two years, whoever you bank with will be owned by one of them anyway.

Compass Bank offers free checking forever, so that may be beneficial.

as for branches everywhere, we actually bank the HOA at a small bank with only one branch in my immediate area. I run to it twice a month to deposit checks, and they mail our statement. that's about all the interaction we have. So, I don't need branches everywhere, as long as there is a branch between home and work, it's convenient.

MelindaH (California)
Posts: 3

Posted:

I just wanted to thank Brian and Swan for responding. I did some research on business accounts and I think we're going with Washington Mutual. They have free business checking, while the other big banks don't. (BofA and Wells both offer no fees only for the first year.)I haven't made the switch yet, but will soon. Thanks again for all your help.
Melinda

JoelM (Ohio)
Posts: 10

Posted:

I would go to www.caionline.org or www.cacm.org and see which banks are sponsoring these industry websites and associations. There are a number of banks that pride themselves in serving the community association industry and these are banks that if you develop a history with, if and when you may need a loan for a capital improvement, or something else, you will already be a client. As someone who attends multiple industry tradeshows each year, there are multiple banks that are exhibitors seeking community association business. I know that Community Association Banc, a Divion of First National Bank advertises alot (I have no connection with , nor do I do any business with this institution). Their website is www.cabnac.com.

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