Novo Business Checking Review 2022
This article is part of a larger series on Business Banking.
If your business is looking for a provider with a completely online checking account with no fees, a Novo business checking account is an excellent choice. Novo has partnered with Middlesex Federal Savings to provide online-only business banking with no maintenance fees, free unlimited transactions, and refunded ATM fees.
While you cannot physically deposit cash into your Novo account, you can purchase a money order and deposit it in your account through the mobile app. Novo’s business checking account is noninterest drawing, and the company doesn’t offer savings and lending products. Otherwise, it’s a very solid online business checking option.
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 other 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 | $0 |
 | 1.5% on balances up to $100,000 | $4.95/deposit; accepted at Green Dot locations | No fees at 38,000+ MoneyPass ATMs nationwide | None |
 | 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 | $100 |
*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
We recommend Novo for the following scenarios:
- Businesses that make frequent ATM withdrawals because Novo refunds ATM fees at the end of each month. This is what made Novo one of our choices for the best small business checking accounts.
- Business owners that are comfortable with an online-only bank and don’t need their business bank to have a physical location.
- Businesses that don’t need to deposit cash directly into their business account.
- Businesses looking for a fee-free business banking experience, which also makes Novo one of the best choices for the business checking accounts for limited liability companies (LLCs).
- Businesses not interested in savings accounts or lending products and looking for a free business checking account.
- Because the account is easy to set up and manage from the app and online, Novo is a great choice for startup businesses and self-employed and freelance workers looking for a simple business checking account.
When Novo Isn’t a Good Fit
While Novo offers a great online banking product, it might not be the best fit for your business. You might choose an alternative to Novo in the following scenarios:
- If you need to deposit cash regularly into your account. You can deposit money orders and checks through the app, but if you’re depositing cash constantly, you might consider a bank with a physical location, such as Bank of America, Chase or U.S. Bank.
- Novo’s business checking account is a noninterest drawing account. If you want your business checking to earn interest, Bluevine is a good alternative that offers higher interest rates on eligible deposits.
- If you need other services from your bank, such as a savings account or lending products, Live Oak Bank offers both.
Novo Business Checking Overview
Required Opening Deposit | $0 |
Required Balance Minimum | None |
Transaction Limit Before Fees | No limit |
Automated Clearing House (ACH) Fees | None |
Domestic Wire Transfer Fees | None to receive; cannot send wires domestically but can send fee-free ACH transfers |
International Wire Fees | Novo partners with Wise to send international wires for a “low” fee |
ATM Fees | All fees refunded at the end of the month |
Cash Deposited | None; money orders can be deposited through the app |
APY | N/A |
The documents required by Novo 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 more information on how to open a business checking account, check out our guide to opening a business bank account, which includes a convenient checklist to help you through the process.
Novo Business Checking Features
There are several features of Novo business checking accounts 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 but 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 Reserves
Novo also 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 other business software services, including Wise, Slack, Xero, Stripe, Square, PayPal, Shopify, and QuickBooks.
Novo Virtual Card
You can activate your Novo Virtual Card through 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 amount you can make, and they’re 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.
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 Small Business Checking Pros & Cons
| PROS | CONS |
|---|---|
| Offers an entirely online, 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 to other small business software | No physical branch locations |
If you’re looking for a digital-only bank with no fees and great software integrations, Novo is an excellent choice. Novo has a very good app that’s ranked highly in both Google Play (4.4 stars out of 5 with more than 2,800 votes) and the Apple App Store (4.8 out of 5 with more than 9,800 votes). Users appreciate the quick response time from Novo customer service if there are any issues while some users noted slow check deposit times through the app.
Alternatives to Novo Business Checking
While Novo offers a very good online checking product, it might not work for your business needs. If you’re looking for an interest-drawing account, need to deposit cash regularly, need other services such as savings and lending products, or just want to stop into a physical location, you may want to consider an alternative bank.
Here are three alternative options for small business checking accounts:
- Chase: Best for businesses that need to make regular cash deposits or want a full-service bank with physical locations for more business banking services.
- Bluevine: Best for businesses that want an online banking experience or who don’t need to deposit cash but want an account that earns interest for qualified deposits.
- Live Oak Bank: Best for businesses looking for interest-drawing savings or certificates of deposits (CDs) or looking for Small Business Administration (SBA) or other commercial loans for their business.
Bottom Line
If you’re 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 the company refunds ATM fees at the end of each month. If you need to regularly deposit cash, need other banking services besides a checking account, want an interest-bearing account, or want a physical location to visit, you should consider one of the alternatives to meet your business needs.
