Novo business banking can be a solid option for small business owners and entrepreneurs. It features a small business checking account with no monthly fees or minimum balance requirements along with tools to help keep your business finances running smoothly.
Find out how Novo stacks up against other business banking services.
What Is Novo Business Banking?
Novo is a financial technology company that offers online banking services for small businesses. It’s not a bank, but rather a service provider for Middlesex Federal Savings, F.A. Member FDIC, which means accounts are FDIC insured.
Unlike traditional banks, there are no branches to visit so you do need to be comfortable with digital banking. You’ll be able to access your business bank account online and through the Novo mobile app.
Top features include:
- No monthly fees or minimum balance requirements
- ATM fee reimbursement worldwide
- Fully digital banking
- Budget with reserve accounts
- Unlimited free invoicing
Novo Business Banking Overview
One of the biggest benefits of a Novo business checking account is the low cost. Its free business checking account features no monthly fees or minimum balance requirements, no hidden fees, and it even refunds ATM fees.
As long as you’re comfortable managing your account online and don’t mind not having a physical branch you can visit, you can save money by skipping traditional bank fees.
How Novo Business Checking Work
Opening an account online on the Novo website or using the Novo mobile app is simple and quick. You can download the app in the Google Play store or the Apple Store. You must have a cell phone with a major US carrier to open an account.
The minimum deposit to open an account is $50, but after the opening deposit, there are no additional balance requirements. (There is an overdraft fee for insufficient funds, however.)
To open an account, you’ll need to provide certain information including a Social Security number, phone number and verification of your U.S. address. An Employer Identification Number (EIN) is required if your business is an LLC or Corporation. There is no credit check.
Once you are approved and your account is opened you can link your account to business tools such as PayPal, Apple Pay, Google Pay, Shopify, Quickbooks, Xero and more through Novo apps.
You’ll be able to create and send an unlimited number of invoices and accept ACH or check payments.
Perks include discounts and credits on popular services such as Stripe Hubspot, Gusto, Google Cloud and more.
You’ll get a virtual debit card right away which you can activate online or in the app. Novo customers can use their physical debit card at any ATM. ATM fees will be reimbursed, regardless of the ATM network used. Even international ATM fees are eligible for reimbursement.
You can also create up to 5 reserve accounts which you can use to set aside money for specific goals. You can instantly transfer money from reserve accounts.
Deposit funds using ACH or by using mobile check deposit. You can send payments using ACH or by requesting free paper checks. (Cash deposits aren’t available – you’ll need to purchase a money order.) There is no fee for ACH transfers. International wires can be sent using Wise.
Pros And Cons Of Novo Business Banking
- No monthly fees
- No minimum balance requirements
- No hidden fees
- Virtual debit card
- No transfer fees
- Create and send invoices
- ATM fee reimbursement
- No international fees
- Integrations with a variety of apps
- Can’t accept cash deposits
- No savings account
- No credit card
- No interest on account balances
- No overdraft protection
- Can’t set up recurring payments
- Limited customer support hours
Who Novo Business Banking Is Best For
Novo is a solid option for small businesses including freelancers and independent contractors, online businesses, and startups. It is available to sole proprietorships, partnerships, LLCs and Corporations. With free business checking and no minimum deposits it’s a cost-effective option for businesses looking for a cost-effective solution.
Some businesses may find services more limited when compared to other banks offering business checking accounts, however. For example, businesses that handle a lot of cash may need a bank with branches for cash deposits.
Customer support is not currently available 24/7 and is provided mainly through email and the Novo app.
Does Novo Have A Business Savings Account?
No. Currently, Novo only offers business checking accounts. They do not have a savings account nor do they offer interest on any of the Novo business checking accounts.
Novo does not offer a business credit card.
How Novo Business Banking Compares
See how Novo business banking compares to other business checking offers using Nav’s business checking marketplace.