Novo Business Checking Account Basics
Novo describes its business checking account as “Powerfully simple business banking.”¹ Indeed, Novo’s business checking account is relatively inexpensive and straightforward compared to some major banks that have several tiers of business checking account options with various levels of monthly fees.
There’s no monthly maintenance fee, and there are relatively few other fees. Novo doesn’t charge for incoming or outgoing ACH transfers, incoming domestic or foreign wire transfers, stop payments, debit card replacement, physical checks, bill payments, checks or paper statements.
If you need access to cash, you don’t need to worry about getting penalized for using out-of-network ATMs—Novo refunds ATM fees up to $7 per month, including those incurred at international ATMs. While the Novo website says there is no required minimum balance to maintain, Novo requests an opening minimum deposit of $50 to unlock Novo Boost, an account feature that gives you access to Stripe payouts up to two days early.
The account comes with a debit card and, through the Novo app, you can request to have checks written and sent on your behalf for no charge. Cash can be deposited into the account by purchasing a money order through an approved vendor and then using the mobile check deposit feature.
You can apply for Novo’s business checking account online—the fintech company says it only takes 10 minutes to apply.
Novo Business Checking Account Distinguishing Features
Novo integrates with hundreds of small business tools, such as Stripe, Shopify and QuickBooks. From your Novo account, you could, for example, view your Stripe balance of customer payments, transfer money internationally with Wise and track your QuickBooks transactions in real time. Novo’s business checking account gives you a convenient way of connecting with other digital tools that can help you run your business.
In addition to business checking tools and features, Novo offers Novo Reserves, a way to set aside money for specific purposes, such as taxes, payroll or other expenses. As part of your Novo account, you can create up to five Reserves for multiple budgets and goals.
Novo offers other perks as well. You can get discounts and cash savings when you sign up for other accounts and services with Novo partners such as Google Cloud, QuickBooks, HubSpot and more.
Read More: Best Business Checking Accounts Of 2024
Access on the Go
Novo’s mobile and online features allow business owners to manage their finances from anywhere. Its mobile app provides several desirable mobile features for businesses, including:
- Remote check deposit. Deposit checks by scanning them with your phone camera.
- Mobile wallets. Novo’s debit card can be used with Apple Pay and Google Pay.
- ATM access. ATM fees are refunded up to $7 per month.
- Invoicing. Create, send and track invoices.
- Payment. Get payouts from platforms like Square, Stripe and Shopify.
- Reserve money. Use Novo Reserves to set money aside.
The Novo mobile app is highly rated. Novo’s customer support team answers questions within 60 minutes Monday through Friday, from 9 a.m. to 6 p.m. ET.
How Novo Stacks Up
Novo deserves credit for its strong focus on delivering a business checking account that largely lacks fees. Unlike some major competitors, Novo doesn’t charge a monthly service fee. It also refunds ATM fees (up to $7 per month) and doesn’t charge for ACH transfers. Plus, there’s no minimum account balance required and no monthly fees.
Small business owners already accustomed to using payment apps, small business software and accounting tools may find that Novo integrates with the tools they’re already using. Because it integrates with so many tools, Novo can serve as a home base for your business finances, offering convenience and visibility.
Novo could be a good option if you’re a small business owner who is already used to doing most of your banking online, since its business checking account is designed for online transactions.
But depositing cash with Novo can be cumbersome. To deposit cash, you must first purchase a money order from USPS, Walmart, a grocery store or another approved vendor. Then you can use the mobile check deposit feature in the mobile app to deposit the money order.
Novo also doesn’t offer interest earnings. And it doesn’t have any other business products, limiting what you can do with the company. If you’re looking for a banking solution that offers loans and other business services, Novo may not be for you.
Novo Vs. Bluevine
Bluevine is a fintech company providing online financial services for small business owners. Bluevine offers two services—checking accounts and business loans. Like Novo, the Bluevine Business Checking is simple and inexpensive. There are no overdraft fees, monthly fees or account minimums. And there’s no limit to the number of transactions you can make each month.
There is one big advantage Bluevine has over Novo: high-yield interest. If you spend $500 on your Bluevine debit card or receive $2,500 in customer payments each month, you can earn 2.00% APY on balances up to $250,000. Other perks include two free checkbooks per year, easy integration with financial apps and the ability to earn rewards with your Bluevine debit card.
Bluevine doesn’t reimburse all ATM fees. But account holders do get free transactions at any MoneyPass® ATM.
Novo Vs. Axos
Axos Bank offers full-service banking—including checking, savings, investing, small business banking, loans and more. There are two business checking accounts to choose from: Axos Bank Basic Business Checking and Axos Bank Small Business Interest Checking.
The no-frills Basic Business Checking is similar to Novo’s account. There’s no initial deposit requirement, no minimum balance requirement and no monthly fee. Customers get reimbursements for any domestic ATM transactions and receive unlimited debit, credit and deposit processing.
The Small Business Interest Checking account earns up to 1.01% APY on balances below $50,000, but you have to make an initial $100 deposit. Customers who don’t meet this daily balance requirement must pay a $10 monthly maintenance fee.
Both accounts are compatible with QuickBooks and offer overdraft protection with a linked Axos business account. Customers needing to make cash deposits can do so using MoneyPass and Allpoint networks.
Novo Vs. Lili
Lili is a fintech company that works with a partner bank to provide financial services for small business owners. Lili offers a business banking account with two levels: Lili Basic and Lili Pro. Lili Basic is similar to Novo’s business checking account, with no minimum balance requirements or account fees. Lili Pro, however, has a monthly fee of $15.
Both Lili Pro and Lili Basic can help you categorize business expenses and automatically set aside money for taxes, which is helpful if you do your own bookkeeping. Lili also connects with payment apps, online platforms and other bank accounts for easy payments and transfers. Lili limits fee-free ATM transactions to in-network machines. And you can only deposit cash at partner retail locations, where you’ll need to pay a fee to make a deposit.
Lili Pro has some added perks for the Lili Pro monthly fee, including fee-free overdrafts up to $200, a savings bucket that earns 4.15% APY and cashback rewards at qualifying merchants with the Lili debit card.
Looking For a Business Checking Account?
On Novo's Website
Methodology
Forbes Advisor rates banks¹ based on various factors, including their fees, interest rates and ATM networks, among other characteristics. We assign separate ratings to financial institutions and their individual products, such as checking accounts, savings accounts and certificates of deposit (CDs). We rate banks based on a scale of one to five stars, with one star as the poorest rating and five stars as the best.
To learn more about our rating and review methodology and editorial process, check out our guide on How Forbes Advisor Reviews Banks.
¹Novo is a fintech company; not a bank. Deposit account services provided by Middlesex Federal Savings, F.A., Member FDIC. Physical debit cards issued by Middlesex Federal Savings or Patriot Bank, N.A., Member FDIC; virtual cards issued by Patriot Bank, pursuant to licenses from Mastercard® International Incorporated. Mastercard can be used everywhere Mastercard is accepted. Mastercard is a registered trademark of Mastercard International Incorporated.
Novo Platform Inc. {“Novo”) is a fintech, not a bank. Banking services provided by Middlesex Federal Savings, F.A. Member FDIC.
Frequently Asked Questions (FAQs)
Is Novo a bank?
Novo is not a bank; it’s a mobile banking platform that partners with a bank. Novo’s deposit account services are provided by Middlesex Federal Savings, F.A. Member FDIC.
Is Novo FDIC insured?
Deposit accounts at Novo are FDIC insured through its bank partner, Middlesex Federal Savings, F.A., (FDIC #28368). As an account holder at an FDIC-insured bank, you are protected for up to $250,000 per depositor, for each account ownership category, in the event of a bank failure.
Who can qualify for a Novo account?
Novo states that almost any business operating in the U.S. can potentially qualify for a Novo business checking account, even if you are a sole proprietor with no separate legal entity for your business. If the business owner has a Social Security number, a U.S. address and a U.S. cell phone number, they can apply for a Novo business checking account. Novo requires EINs for corporations or partnerships.
Which businesses are eligible for a Novo business checking account?
You can apply for a Novo business checking account if you have a business registered in the U.S. This includes sole proprietorships, LLCs, corporations, general partnerships and nonprofit organizations.
Which businesses or industries does Novo restrict from opening an account?
Novo does not support businesses engaged in cannabis sales, cryptocurrency (providing or exchanging cryptocurrency), money services or privately owned ATMs. It also doesn’t support Series LLCs or other similar types of businesses at this time.
