Novo Review

Pros

• $0 opening minimum balance & minimal fees
• Free transfers, incoming wires, and payments
• Mobile app
• ATM fees reimbursement
• Integrations

Cons

• No interest-earning accounts
• No cash deposits

What Is Novo?

Novo is fintech that comes with business checking functionality, a debit card you can use for free worldwide, $0 minimum balance requirements, a slew of useful integrations, FDIC insurance, and little to no fees. These perks put Novo on our list of the best online business bank accounts.

Note that although Novo provides some banking services, Novo is a financial technology company (fintech) and not a bank. Banking services are provided by Middlesex Federal Savings, F.A, Member FDIC. The Novo Debit Card is also issued by Middlesex Federal Savings, F.A.

Related: Wondering if you even need a business bank account? Our Merchant Maverick CEO lays out eight reasons why you do in this short video.

Services Offered By Novo

Novo doesn’t offer a huge array of services, instead focusing on business checking. Novo offers business checking accounts that truly are free of almost all fees and offer helpful features and perks like virtual cards, checks, mobile apps, and unlimited transfers.

Novo lacks a business savings option, which did affect our overall rating.

Novo redeems itself a bit with a merchant cash advance option called Novo Funding.

Novo Funding provides flexible working capital of up to $10K in the form of merchant cash advances. With decisions within 24 hours, you’ll have instant access to funds following approval. You’ll have a six-month repayment schedule, with no penalty for early repayment. Rather than interest, you’ll pay a factoring rate.

Novo also offers Invoice Flex, allowing you to get paid up to 100% of your eligible invoices upfront. The Novo Business Credit Card (issued by Continental Bank) is also a funding option available to eligible Novo customers.

Novo Rewards & Perks

Compared to other fintechs, Novo comes up short in one key area: interest-earning rewards. No matter how much you have in your Novo account, you won’t earn any APY. There are also no cash-back rewards with its checking accounts, although rewards are offered with the Novo Business Credit Card.

While there are no traditional APY or cash-back rewards for checking accounts, a big perk of Novo is the lack of monthly fees. So, while you might not earn interest, you will save money on fees.

Novo does offer partner perk rewards and discounts, like 20% off Dropbox, 30% off QuickBooks Online, and 5% cashback on car rentals through Avis or Budget.

Novo also has a referral program where you can receive a cash bonus for referring new customers.

If APY is important to you, check out our suggestions for the best high-yield savings accounts for businesses to find a Novo alternative.

Novo Pricing & Fees

Novo pricing is straightforward.

You’ll find no hidden fees, monthly fees, or minimum balance requirements. ACH transfers, mailed payments by check, and incoming wires are free. You’ll pay up to $30 for outgoing domestic wires. Outgoing international wires are not supported.

Many online competitors that have similar low fees hit you with a high foreign transaction fee, but Novo has a 0% transaction fee as well, making it a truly competitive option.

Although Novo does not have an ATM network, Novo customers will receive reimbursements for up to $7/month for ATM fees.

Transaction Limits

Note that Novo does impose transaction limits as follows:

Users can reach out to Novo support through the Novo app to request increases to these limits. If you plan on depositing a large amount of money, Novo requests two to three days’ advance notice through the Support tab in the app so your deposits are not flagged for fraudulent activity.

Novo Eligibility Requirements

Novo’s services are available to nearly all small businesses,  including sole proprietorships (such as freelancers and independent contractors), LLCs, partnerships, or corporations. Novo will not check your credit history when you apply for an account, so applying will not affect your credit score.

The Novo website lists the following requirements for all business accounts:

• Located in the US
• The owner must be a permanent US resident with legal status and aged 18+
• Valid US mailing address
• Valid mobile phone using a major US carrier
• Valid Social Security Number or equivalent, such as an EIN

Novo does have a high-risk industry list, but the list is less restrictive than the standard high-risk industry list. The following types of high-risk businesses are listed as ones that cannot use Novo: cryptocurrencies, privately owned ATMs, marijuana/cannabis, gambling, crowdfunding, and money services.

Novo Features

Novo offers a decent amount of features, especially for a free business checking account. However, the company has fewer financial management features than some of its competitors and has low initial transaction limits. It’s also missing cash deposits and outgoing international wire transfers.

As far as cash deposits, Novo suggests a workaround that might do the job. You can use cash to purchase a money order at a common location such as a US Post Office or a grocery store. Then use your mobile app’s check deposit function to transfer the money order into your Novo account. While we appreciate that there is a workaround, the sheer inconvenience of this makes Novo a bad fit for cash-based businesses.

Here are some of the features that Novo does offer:

• Invoicing
• Bookkeeping tools
• International debit card support
• Novo Reserves savings subaccounts
• User management
• Check deposits
• Digital wallet
• Bill pay
• Unlimited transactions
• AT refunds
• eCommerce integrations
• Accounting integrations
• POS integrations
• FDIC insurance

Novo Application Process

Novo has an online application that takes less than 10 minutes to complete. The application process is fairly easy.

Depending on your business classification, Novo will require commonly available documentation when you apply. Sole proprietors can expect to show identification and a DBA certificate if they have one. Not surprisingly, corporations need more documentation, including articles of incorporation and other legal forms.

Once approved, there’s no opening deposit required, although it is recommended to deposit at least $1,000.

Novo Sales & Advertising Transparency

Novo gets a solid score for sales and advertising transparency. The company is fairly straightforward with information regarding fees, rewards, and the application process, and the company’s website has standard marketing practices but isn’t misleading.

Novo Customer Service & Support

Novo offers in-app support and other options, such as live chat and email.

Help is available Monday-Friday, from 9 AM to 6 PM Eastern Time. One of Novo’s most useful customer support options is its FAQ collection, where you’ll find answers to common questions or concerns.

User comments posted online via review sites are generally complimentary regarding Novo’s customer service, though we would like to see more extended support hours and a more comprehensive help center.

Novo Reviews & Customer Complaints

User feedback about Novo is mixed but is generally positive. Across third-party review sites, Novo gets an aggregate score of 4.0/5 stars. Here’s a breakdown of the specific praises and complaints users have.

Negative Novo Reviews & Complaints

• Difficulty with international wires
• Debit card and payment limits
• Hard to reach customer service
• Accounts closed without warning
• No traditional checkbooks

Positive Novo Reviews

• Good customer service
• No fees
• Strong mobile app
• User-friendly
• ATM fee refunds

Is Novo Safe?

Like other online business checking options, Novo is a financial services company — not a bank. Banking services are provided by Middlesex Federal Savings, F.A., Member FDIC. Through this partnership, Novo accounts are FDIC-insured to the legal limit of $250,000.

Novo uses industry-standard bank-level encryption to secure users’ personal and business data. The information you provide to verify your identity when you apply for a Novo account is protected by Novo’s privacy policy and by federal law.

Final Verdict: Is Novo Worth It?

Aimed at small business owners, including freelancers and contract workers, Novo hits the mark with its almost fee-free services. You won’t have to maintain any minimum balance, and you also won’t encounter any recurring fees, making Novo a good choice for even the smallest business.

Novo goes beyond competitors by offering reimbursement of ATM fees. The Novo mobile app is easy to use and offers full functionality, including on-the-go check deposits and payment options, such as checks mailed on your behalf. Furthermore, Novo offers one of the best suites of small-business-friendly integrations we’ve seen.

For some businesses, that’s enough to offset some of the disadvantages Novo brings to the table, including the lack of cash deposits and standard rewards like APY and cash-back. There’s also no savings account option, so while Novo could be a good free business checking option, it’s not a full small business banking suite.

Check out our list of the best online business bank accounts if you need an option that fits the bill better than Novo.