Banks in California Key Terms

Learn these key terms to bank with confidence in California

By Paul Hirsch

Banking in California is similar to banking in other states. Customers can have savings accounts, checking accounts, receive loans, invest in a variety of bonds and certificates of deposit, get cash, and receive advice from highly trained employees. Like other places in the U.S., California banks are foreclosing on real estate loans and increasing diligence on business and personal loans. There are some institutions that only exist in California. If you are looking for local options that understand the nuances of the state, these resources will prove valuable.

Negotiable order of withdrawal (NOW) account

A negotiable order of withdrawal or NOW account allows account owners to write drafts against the interest-earning bank deposits. California banks offer these specialized accounts to interested business owners.
Try: Desert Community Bank operates solely in California and offers NOW accounts as well as many other banking services.

Remote deposit

For businesses that require the option to deposit funds into accounts without actually having to make trips to a local branch, remote deposits are ideal. This option, offered by some California banks enables electronic deposit of funds to accounts.
Try: California Bank and Trust provides information on the benefits of remote deposit.

California Bankers Association (CBA)

The CBA is an organization that provides information, resources and support to the state's member institutions. It claims to be one of the largest state trade organizations in the country.
Try: To learn more about the organization and its members as well as the benefits of joining, contact CBA officers.

California financial code

Different institutions in California have to abide by different sets of rules and regulations. Based on the type of services provided and the customers, each California bank must abide by certain financial codes specific to the state.
Try: Visit the California Department of Financial Institutions to search a list of state financial codes.

Housing finance agency

The state of California developed a local banking institution to specifically provide affordable housing solutions to its more than 100,000 residents.
Try: The California Housing Finance Agency has locations in Sacramento and Los Angeles, and helps homeowners locate lenders.

Independent bankers

California Independent Bankers (CIB) is an organization that provides educational and support services to local financial institutions. The CIB represents more than 160 banks in California.
Try: Visit the CIB online to learn about the organization and how it tracks state legislation and keeps its members abreast of the latest banking laws and regulations.