Novo Business Checking Account Review 2024
Novo is a digital platform for small businesses. If you’re a freelancer, entrepreneur, or small business owner, it can help you keep track of your business finances.
Novo’s current offering is a business checking account. Here’s a closer look at the Novo business checking account so you can decide if it makes sense for your unique situation.
Novo Business Checking Account At-a-Glance
Pros and Cons of the Novo Business Checking Account
A Novo business checking account may be better for some entrepreneurs and small business owners than others. Here’s a quick rundown of the benefits and drawbacks to consider.
Pros
- Minimal fees
- Integrations with popular tools like QuickBooks, Square, and Shopify
- Highly-rated mobile app
- Refunds all ATM fees
- Easy signup process
- Novo perks program for discounts
Cons
- No way to earn interest
- Fee for insufficient funds
- Novo doesn’t offer other business products, like savings accounts
- Depositing cash is a difficult process
- No recurring payments with bill pay
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Compare to Other Checking Accounts
While the Novo Business Checking account offers a variety of benefits, you might be wondering about your other options.
Here are a few alternative business checking accounts to explore.
BlueVine
BlueVine is an online banking platform with a business checking account.
Unlike Novo, it earns a competitive APY, but to land this APY, you must spend a certain amount per month with your BlueVine Business Debit Mastercard or receive a specific amount in customer payments via wire transfer, ACH, or mobile check deposit.
Found
Found is a fintech company that offers a business checking account with no monthly fees.
It includes unique perks that aren’t available with Novo, like unlimited invoicing and integrated bookkeeping tools.
There’s also an app that estimates your tax bill and helps you set money aside to cover your taxes.
Bank of America
The Bank of America Business Advantage Checking account stands out for its high cash deposit limits that you won’t find with Novo.
Plus, it comes with extras like the Business Advantage 360 online banking platform, complete with mobile banking, cash flow monitoring, bill pay, and mobile check deposit.
Who Is a Novo Business Checking Account For?
A Novo business checking account can be a good option for entrepreneurs and small business owners who appreciate a digital banking experience. It should be on your radar if you:
- You want to avoid high banking fees
- You’re already doing most of your business banking online
- You’d like an account that integrates with your current payment apps and small business accounting tools
- You don’t want to worry about a minimum account balance
Your money is safe and secure with Novo since it’s FDIC-insured through Middlesex Federal Savings. Plus, you’ll receive refunds on all ATM fees and won’t have to pay for wire transfers.
Top Features of the Novo Business Checking Account
If you’re new to the Novo business checking account, you might be wondering why it’s a solid choice over other options.
By taking a closer look at its features, you can determine whether it makes sense for you.
Quick Application
It doesn’t take long to apply for a Novo business checking account. You can easily apply online in 10 minutes or less. Just be prepared to share basic information about yourself and your business.
No ATM Fees
If you need to withdraw cash, you won’t get penalized like you might with other business bank accounts. Novo refunds all ATM fees, including those you might incur at out-of-network or international ATMs.
Highly Rated Mobile App
Novo is worth considering if you like to do your banking on the go, thanks to its intuitive mobile app. Its app is packed with a variety of features, such as remote check deposits, mobile wallets, ATM access, invoicing, and reserve money.
Easy Integrations
If you use other online tools, you’ll be pleased to learn that you may be able to integrate them with Novo and streamline your processes. Novo easily integrates with many popular tools like QuickBooks, Shopify, Wise, Zapier, and Stripe.
FDIC Coverage
The Federal Deposit Insurance Corporation (FDIC) insures deposits at partner banks in the event a bank fails. As mentioned, Novo is FDIC-insured through Middlesex Federal Savings, so your deposits are protected up to $250,000.
How to Get Started
If you’d like to apply for a Novo business checking account, you can do so online on the Novo website. You must have a registered U.S. business, such as a sole proprietorship, LLC, corporation, general partnership, or nonprofit organization.
It’s also important that you’re at least 18 years old and a U.S. citizen or permanent resident.
Here’s the information you’ll need to provide Novo:
- Business email and password
- Name
- Address and phone number
- Social Security number
- Basic business documents
Once you submit your application, Novo will review it and reach out to you if it requires additional information or documents.
You should receive a decision within two to three business days. Upon approval, you can download the mobile app, fund your account, and integrate it with any business tools you already use.
Rating the Features
When opening a new business checking account, it’s a good idea to review the features and benefits. Here are some more details on Novo.
User Experience
It’s easy to open a Novo business checking account. Simply visit the Novo website and complete the process in 10 minutes or less.
If you come across an issue, you can go to the robust FAQ page on the Novo site.
Fees
When it comes to fees, Novo excels as it only charges a fee for insufficient funds.
There are no monthly maintenance fees, incoming or outgoing ACH transfer fees, debit card replacement fees, physical check fees, bill payment fees, or paper statement fees.
Rates
If your primary goal is to earn interest, you’ll need to look elsewhere, as the Novo business checking account doesn’t come with an interest rate.
While it’s a safe place to park your funds, it won’t help you grow them.
Variety
The Novo business checking account is Novo’s only product at the time this review was written.
Currently, Novo doesn’t offer other business products, like savings accounts, personal loans, or lines of credit, so you would need to use another bank for those products, which can be an inconvenience.
Customer Support
If you need help with your account, you can check out Novo’s extensive FAQ page.
You may also reach out to customer support via chat, email, or phone. But you might have to wait a few business days for a response.
Access
You can access your Novo business checking account online on Novo’s website.
If you prefer to bank on the go, you can also download its robust mobile app. Since Novo is a digital company, there are no branches for in-person service.
Bottom Line
Business checking accounts can help you manage your business finances but they’re not all created equal.
Finding the ideal option depends on your unique goals and priorities.
If you’re looking for a business checking account with minimal fees, easy integrations, and a highly-rated mobile app, Novo is certainly worth exploring.
Frequently Asked Questions (FAQs)
Novo is an independent tech company, rather than a bank. It partners with Middlesex Federal Savings to offer its sole product, the Novo business checking account.
To deposit cash, you’ll need to purchase a money order from USPS or a local retailer. Then, you can use the mobile check deposit feature in the mobile app to deposit it. If you don’t deal in cash, this wouldn’t be a problem, but if you’re in an industry where you do bring in cash, this could prove to be inconvenient.
Novo integrates with a variety of popular online business tools. Some examples include QuickBooks, Shopify, Xero, Square, Wave, Zapier, and Wise.
Novo won’t charge you any fees for ATM withdrawals. You can use any ATM in the U.S. or abroad.
With the Novo perks program, you can use your checking account to access discounts on certain software and services. This may save you money on tools like QuickBooks or Stripe, for example.
