Novo Review: Online Business Checking Accounts For Small Businesses

Pros

• No monthly fees or balance requirements
• Free transfer, incoming wires, and payments
• Mobile app
• ATM fees reimbursement
• Integrations

Cons

• No interest-earning accounts
• No cash deposits
• No lending options

What Is Novo?

Novo checking accounts are designed for small business owners who are comfortable operating online. Novo’s FDIC-insured checking account comes with a debit card and no recurring fees or minimum balance requirements. Also, the application process is quick and easy, with no credit check.

Note that although Novo provides some banking services, Novo is a financial technology (fintech) company and not a bank. Novo is powered by its bank sponsor, Middlesex Federal Savings F.A.

Is Novo the best business account for your small business? Our Novo review uncovers the good and the bad about Novo.

Here’s a partial list:

• ATMs: Since Novo doesn’t have its own ATM network, users will be reimbursed by Novo for all ATM fees they incur.
• Cash Deposits: Novo doesn’t accept cash deposits, though users can link their Novo account to a bank account and then transfer it; transfers are free. Checks can be deposited in a Novo account via the mobile app. Alternatively, you can use your cash to buy a money order and then use Novo’s mobile app to deposit the money order into your Novo account.
• Interest: Novo does not offer savings accounts, and checking accounts do not earn interest.
• Financing: Novo does not offer credit or loans at this point.
• Checks: You won’t be able to write traditional checks with Novo, though users can have checks sent for them via the mobile app.
• Integrations: Unlike many competitors, Novo offers integrations with popular software, such as Xero, Slack, Stripe, Shopify, and QuickBooks. You can also use your Novo account and routing numbers to connect to other services, such as Square.

Users have access to the following Novo services:

• Business checking
• Reserve subaccounts for savings
• Debit card
• Free incoming wires and ACH transfers
• Bill pay via check
• Free ATM access
• eWallet options
• Integrations for eCommerce, accounting, and more
• Discounts and perks with software partners

Novo Rewards & Perks

Novo does not offer some of the common rewards that other fintechs and business banks offer, such as a high APY or any interest-earning potential.

However, Novo does provide some valuable rewards that are worth highlighting. Chief among those is a 6% cash back offer on travel booked through Booking.com, $20,000 in fee-free processing from Stripe (a $500 value), and $3,000 in Google Cloud credits. Discounts and credits are available from Gusto, QuickBooks, HubSpot, Segment, Zendesk, Snapchat Ads, Salesforce Essentials, and Homebase.

Novo also offers a referral program called Novo Turns 3 for current Novo customers who refer a new customer using a unique referral link. Each party will receive a $30 cash deposit to their account when the new customer makes a qualifying deposit of $100 or more within 14 days of opening the new account. Novo users may receive a maximum of $330 in referral bonuses.

If you want more traditional business banking rewards, check out the best high-yield savings accounts for businesses instead. These high-yield options let your money work harder for you to build up your business savings account quickly and securely.

Novo Pricing & Fees

Novo pricing is straightforward. You’ll find no hidden fees, monthly fees, or minimum balance requirements. Transfers, mailed payments by check, and incoming wires are free. (You can’t send out wire transfers from your Novo account.) Although Novo does not have its own ATM network, Novo customers will see a refund of all ATM fees incurred. Novo does not charge foreign transaction fees, though the ATM you use overseas may attach a fee. Again, Novo returns all ATM fees.

The only fees we found listed for Novo are $27 charges for each overdraft or returned payment. So if you don’t make payments that exceed your account balance and don’t deposit any bad checks, you will see $0 in fees on your Novo account.

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 of 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, whether sole proprietorship (such as freelancers and independent contractors), LLC, partnership, or corporation. However, 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.

Apply online for a Novo business account. Depending on your business classification, Novo will require commonly available documentation when opening your business account. 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.

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 Social Security Number or equivalent, such as an EIN

Novo will not check your credit history when you apply for an account, so applying will not affect your credit score.

A $50 opening deposit is required.

Novo Features

Novo offers users financial tools to manage their small business finances. And it has integrations you can plugin, allowing you to track your funds, get paid, send out payments and payroll, and more. The base package includes some of these features, and others must be connected. Taken together, Novo delivers tools to cover almost every financial component of running a small business.

Let’s start with the built-in features first:

On top of these standard business banking features, Novo also offers:

• Invoicing: Create and manage an unlimited number of invoices for free through the Novo app and accept payment via ACH payment, check, or card using Novo’s Stripe, Square, and PayPal integrations.
• International Access: Use your Mastercard debit card in foreign countries and receive a refund on your ATM fees. Send payments internationally via Wise.
• Additional Users: Add fiduciary employees as additional users. The fiduciary must be named as a trustee, executor, administrator, or conservator under court order. You can choose whether to send that person a business debit card for the account.
• Check Deposit: Use the Novo mobile app for unlimited fee-free check deposits.
• Digital Wallet: Link Novo’s virtual debit card to Apple Pay, Samsung Pay, or Google Pay for card-free transactions.
• Integrations: A Novo business checking account can be connected to 15 other big-name business software apps, including eCommerce options, such as Shopify, WooCommerce, Etsy, and Amazon; POS partners, such as Stripe and Square; and accounting software, such as QuickBooks and Xero. You’ll also find a Zapier integration that allows you to connect with thousands of popular apps to automate your work.

Finally, Novo includes these limitations on the availability of funding:

Novo Customer Service & Support

Novo offers in-app support and other options, such as phone and email. Help is available Monday-Friday, from 9 AM to 6 PM Eastern Time.

Here’s a complete list of help options:

• In-App Support: Novo lists this as the preferred method of contacting customer support.
• Phone: At this time, Novo offers phone support to current customers only.
• Email
• FAQs: Find a searchable set of comprehensive answers to common questions on the Novo website. That includes setting up your Novo account, how to link to outside software, and everything in between.
• Blog: Novo posts regular updates on a blog, covering topics such as security, marketing, bookkeeping, and so on.
• Social Media: You can find regular informational posts on Facebook, Twitter, and LinkedIn, and Novo representatives seem to respond to questions posted on social media.

Novo Reviews & Customer Complaints

While Novo has some super fans and detractors, on balance, Novo services earn good ratings from its users. For example, 1,094 reviewers on Trustpilot give Novo a composite of 3.7/5 stars, with 70% of reviewers rating Novo “Excellent” or “Great” compared to just 27% calling it “Poor” or “Bad.”

What Users Like

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

What Users Dislike

• Delays in funding
• No physical checks
• Debit card limits
• Difficulty reaching customer service
• Accounts closed without warning

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 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 as well as 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. The starting balance requirement of $50 is reasonable, and once your account is established, you won’t have a minimum balance to maintain. You also won’t encounter any recurring fees, making Novo a good choice for even the smallest enterprise.

Novo goes beyond competitors by offering full reimbursement of all ATM fees, including on foreign transactions. Its mobile app is easy to use and offers full functionality, including on-the-go check deposits and fee payment options, such as checks mailed on your behalf. Novo offers one of the best suites of small-business-friendly integrations we’ve seen. Novo allows you to connect all your business finances with various integrations, including Stripe, Square, QuickBooks Online, Gusto, Salesforce, and more.

In our opinion, that’s enough to offset some of the disadvantages Novo brings to the table, including the inability to make cash deposits and the lack of interest-bearing account options. If your business is poised for growth, be aware that Novo does not offer credit or lending options at this time, though that’s said to be in the works.

We think Novo is a good choice for any small business or side venture that’s gotten too big to keep running through your personal bank account. If you’ve already reached that point and know your business is ready for business banking services, give Novo another look and see if it’s right for your business.

Novo FAQs

The Merchant Maverick Seal of Approval 🏆

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After hours of in-depth research and evaluation, we can confidently recommend this brand to our readers. Get started today and see Novo for yourself.

The Merchant Maverick Seal of Approval 🏆

Novo	Visit Site

After hours of in-depth research and evaluation, we can confidently recommend this brand to our readers. Get started today and see Novo for yourself.

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