Novo Business Checking Review 2023
Tricia has nearly two decades of experience in commercial and federal government lending. Her expertise is highlighted throughout small business loan content on Fit Small Business.
This article is part of a larger series on Business Banking.
A Novo business checking account is an excellent choice if your business is looking for a product with unlimited free transactions, no monthly fees, and no opening deposit requirement; however, it is not interest-drawing. Novo refunds all ATM fees but lacks savings and lending products. You can’t physically deposit cash into your Novo account, but you can purchase a money order and deposit it to your account through the mobile app.
Note: Novo is a business financial technology (fintech) platform backed by FDIC-insured Middlesex Federal Savings.
Business Checking
What We Like
- Zero maintenance fees
- Refunds all ATM fees
- Free unlimited transactions
What's Missing
- Unable to deposit cash directly
- Lack of savings accounts and lending products
- Noninterest-drawing account
Features
- Integrates with business tools, such as QuickBooks, Slack, Xero, Stripe, Square, PayPal, Wise, and Shopify
- Set aside funds for taxes and other large business expenses with Novo Reserves
- Deposit checks directly through the mobile app
- Online banking includes unlimited invoicing and bill pay
How Novo Stacks Up With Its Competitors
|
Annual Percentage Yield (APY) |
Cash Deposit Fee |
ATM Fee |
Minimum Opening Deposit |
|
|---|---|---|---|---|
 |
N/A
|
None; cash is deposited through money orders
|
Refunds all ATM fees
|
None
|
| Visit Novo* | ||||
 |
2.0% on balances up to $100,000
|
$4.95/deposit; accepted at Green Dot locations
|
None at 38,000+ MoneyPass ATMs nationwide
|
None
|
| Visit Bluevine* | ||||
 |
0.50% on balances of $10,000 or more
|
None; cash is deposited through money orders
|
None; refunds up to $10/month in ATM fees
|
Visit First Internet Bank
|
| Visit First Internet Bank | ||||
*Providers are financial technology (fintech) platforms backed by and Federal Deposit Insurance Corp. (FDIC)-insured through a supporting bank partnership (Middlesex Federal Savings for Novo and Coastal Community Bank for Bluevine).
When Novo Is a Good Fit
- You make frequent ATM withdrawals: Novo refunds ATM fees at the end of each month. This is what makes Novo one of our choices for the best small business checking accounts.
- You are comfortable with an online-only bank: Novo is suitable if you don’t need your bank to have a physical location.
- You don’t need to deposit cash directly into your business account: This fintech platform does not offer a facility for cash deposits.
- You want a fee-free business banking experience: Novo offers no monthly, opening deposit, and ACH fees, which makes Novo one of the best business checking accounts for LLCs.
- Your business accepts payments through Stripe: This fintech offers Novo Boost, allowing you to get paid faster through your Stripe account at no additional cost. It also has Express ACH, where you can send or accept same-day ACH payments, making your funds immediately available in comparison to other providers. It’s why Novo is part of our lists of best free business checking accounts and best banks for startups.
- You’re a self-employed professional wanting to save on ATM fees: If you’re a self-employed individual who often withdraws from ATMs for your business funds, Novo provides additional savings by reimbursing all ATM fee refunds each month. This is one of the reasons it’s part of our roundup of best bank accounts for self-employed professionals.
When Novo Isn’t a Good Fit
- You need to deposit cash regularly into your account: You can deposit money orders and checks through the app, but if you deposit cash constantly, you might consider a bank with a physical location such as Bank of America, Chase or U.S. Bank.
- You want your business checking to earn interest: Novo’s business checking account is a noninterest-bearing account. Bluevine is a good alternative, as it offers high interest rates on eligible deposits.
- You need other services from your bank: If you’re seeking a savings account or lending products, Live Oak Bank and First Internet Bank offer both.
For additional recommendations, check out our roundup of the best small business checking accounts.
Novo Business Checking Overview
Novo Business Checking Requirements
The documents required to open a business checking account vary, depending on how your business is organized and your state of operation.
Novo provides a list of documents required for:
Regardless of how your business is organized, you must have the following to open an account:
- A copy of your signed personal identification
- A mobile phone using one of the major United States carriers
- A Social Security number
- A US address
For a checklist of documents banks typically require, refer to our guide on how to open a business banking account.
Novo Business Checking Features
Novo business checking accounts comes with several features that make it an excellent option for your company.
ATM Fees Refunded Each Month
If you don’t need a physical location for your business banking needs and use ATMs frequently, Novo is a good choice. Despite not having a dedicated ATM network, Novo refunds ATM fees at the end of the month.
Novo Mobile App
Novo has a very good app that is ranked highly on both Play Store (4.5 out of 5) and the App Store (4.8 out of 5). Users said that they appreciate the quick response time from Novo’s customer service if there are any issues, whereas other reviews noted slow check deposit times.
Novo Reserves
The fintech solutions provides a feature called Novo Reserves, which allows you to set aside funds for taxes, profit, payroll, and other large business expenses. You can have up to five reserves, with the ability to move money in and out through the app.
Business Software Integration
Novo has excellent integration with business software services, including Wise, Slack, Xero, Stripe, Square, PayPal, Shopify, and QuickBooks.
Novo Virtual Card
You can activate your Novo Virtual Card via the app to spend funds online or through Apple Pay or Google Pay before receiving your physical debit card. The physical debit card, which includes an EMV chip, is accepted worldwide.
Custom Invoice Creation
You can create and send invoices through the app or website. There are no limits to the number of invoices you can make—and they are free. You can connect these invoices directly to Stripe, Square, and PayPal to get paid that way, or you can accept ACH and check payments.
Service & Product Discounts
You can enjoy exclusive discounts on selected business products and services with the Novo Perks program. Some of these providers are Stripe, Google Cloud, QuickBooks, Gusto, HubSpot, offering business checking account holders great savings.
Transfer Funds, Send Payments & Deposit Checks or Money Orders
You can transfer money in or out of Novo through the app with no minimum deposit. This includes sending payments directly from Novo. You can also deposit checks and money orders directly through the app.
Novo Business Checking Pros & Cons
| PROS | CONS |
|---|---|
| Offers an online-only, fee-free small business checking account | No ability to deposit cash |
| All ATM fees reimbursed at the end of the month | Noninterest-drawing account |
| Great app with useful integrations with other small business software | No physical branches |
If you are looking for a digital-only bank with no fees and great software integrations, Novo is an excellent choice. Aside from not having to maintain any required balance and enjoying zero ACH fees and incoming wire fees, you gain more savings from its monthly refund of all ATM fees. You can also integrate popular business software tools such as QuickBooks, Xero, Stripe, and PayPal, with your Novo account, making it easy to perform accounting and manage your business payments.
However, this fintech does not accept any cash deposits, and its account does not provide interest. It also operates fully online, so if you require in-person banking, you will want to consider traditional banks.
Novo User Reviews
Users Like | Users Don't Like |
|---|---|
|
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Novo has a 3.9 rating out of 5 on Trustpilot. Users said that they appreciate how easy it is to open an account and its fee-free features, user-friendly interface, and superb customer service. However, some complained about limited customer support access, check deposit issues, and lag in account updates.
Alternatives to Novo Business Checking
If you seek an interest-drawing account, need to deposit cash regularly, require other bank products such as savings and loans, or just want to stop into a physical location, you will want to consider an alternative bank.
- Chase is best for businesses needing to make regular cash deposits or wanting a full-service bank with physical locations for more business banking services.
- Bluevine is best for businesses that are looking for an online banking experience or don’t need to deposit cash but want an account that earns interest for qualified deposits.
- Live Oak Bank is best for businesses wanting interest-drawing savings or certificates of deposits or those looking for Small Business Administration (SBA) or other commercial loans for their business.
Bottom Line
If you are looking for a digital-only, fee-free business checking account, Novo offers a great product. If your business has frequent ATM withdrawals, Novo makes sense, as it refunds ATM fees at the end of each month. If you need a facility for regular cash deposits, other banking services besides a checking account, an interest-bearing account, or a physical location to visit, you should consider one of the alternatives.
