Novo Business Checking Review 2023
This article is part of a larger series on Business Banking.
The online-only banking platform Novo is an excellent option for organizations that need affordable business checking accounts. The Novo business checking account has no monthly fees or minimum opening deposit requirements and offers unlimited free transactions and unlimited ATM fee refunds. It also offers built-in budgeting tools and instant access to Stripe payouts. However, it lacks savings accounts, lending products, and support for cash deposits.
Note: Novo is a business financial technology (fintech) platform backed by Federal Deposit Insurance Corp. (FDIC)-insured Middlesex Federal Savings.
What We Like
- Zero maintenance fees
- Refunds all ATM fees
- Free unlimited transactions
Drawbacks
- 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
- Receive Stripe payouts faster through Novo Boost
- 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 | |
---|---|---|---|---|
Business Checking | N/A | None; cash is deposited through money orders | Refunds all ATM fees | None |
Business Checking | 2.00% on balances of $250,000 or less† | $4.95 per deposit; accepted at Green Dot locations | None at 38,000-plus MoneyPass ATMs nationwide | None |
Do More BusinessTM Checking | 0.50% on balances of $10,000 or more | None; cash is deposited through money orders | None; refunds up to $10 per month in ATM fees | None |
*Providers are fintech platforms backed by and FDIC-insured through a supporting bank partnership (Middlesex Federal Savings for Novo and Coastal Community Bank for Bluevine).
†Bluevine only offers 2.00% to customers that meet its monthly activity requirements.
When Novo Is a Good Fit
- You make frequent ATM withdrawals: Novo refunds ATM fees at the end of each month, giving you the freedom to make transactions at any ATM network of your choice.
- You want a fee-free business banking experience: Novo charges no fees for monthly maintenance, day-to-day transactions, and ACH transfers.
- 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.
- You frequently send payments through automated clearing house (ACH): Novo offers Express ACH, a feature that lets you send same-day ACH payments, making your funds immediately available compared to other providers.
When Novo Isn’t a Good Fit
- You need to deposit cash regularly into your account: Although Novo lets you deposit money orders and checks through the app, it lacks support for cash deposits. A good alternative would be Bank of America, which offers a fee-free cash deposit allowance of $7,500 for basic accounts. Read our Bank of America business checking review to determine whether the account is right for you.
- You want your business checking account to earn interest: The Novo business checking account is a noninterest-bearing account. The best platform for earning interest is Bluevine, which offers 2.00% APY on balances of $250,000 and less if you successfully meet its monthly activity requirements. Learn more about the differences between Novo and Bluevine through our Novo vs Bluevine business checking comparison.
- You need access to additional banking services: Novo does not offer savings accounts or lending products. If you need access to full-service online business banking, consider Mercury, which offers savings accounts, treasury accounts, credit cards, and venture debt. Our Mercury vs Novo business checking comparison can help determine which account suits you best.
Check out our roundup of the best small business checking accounts for additional recommendations.
Novo Business Checking Overview
Novo Business Checking Requirements
Only business owners aged 18 and older and residing in the United States are allowed to open accounts with Novo. Your business must also be registered in the US. You are also required to have the following:
- Signed personal ID
- Mobile phone using one of the major US carriers
- US Social Security number
- US address
Novo will also review your business documents upon application. It can typically find all necessary business documents itself by communicating with your state’s secretary of state. However, if Novo cannot find the documents it needs, you will be required to prepare them yourself.
Expand your entity type for a list of documents Novo may require.
- Operating agreement
- Articles of organization
Learn more by reading Novo’s frequently asked questions (FAQs) for LLCs.
- Partnership agreement
- Certificate of partnership
Learn more by reading Novo’s FAQs for partnerships.
- Company bylaws
- Articles of incorporation
Learn more by reading Novo’s FAQs for corporations.
- Proof of address
- Doing-business-as (DBA) certificate (if applicable)
Learn more by reading Novo’s FAQs for sole proprietorships.
For a checklist of documents banks typically require, refer to our guide to opening a business banking account.
Novo Business Checking Features
Novo Boost
Novo Boost is a feature that gives you faster access to revenue from Stripe. Typically, it will take your bank account two business days to receive its Stripe payouts. The Novo Boost feature cuts the wait time down to a few hours.
The platform plans on adding this feature for other payment processing platforms in the future.
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
The Novo mobile app lets you do the following:
- Manage cards
- Pay bills
- Process ACH transfers
- Deposit checks
- Categorize transactions
- Manage Novo Reserves
It has a rating of 4.5 out of 5 stars on Google Play (based on 4,000-plus reviews) and 4.8 out of 5 stars on the App Store (based on 13,000-plus reviews). Users praised the app for having an intuitive interface and offering useful features, such as Novo Reserves. However, many reviews complained that customer support response times were too long.
Novo Reserves
The fintech solution 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 integrates with popular business software, 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 for free through the app or website. There is no limit to the number of invoices you can make. You can connect these invoices directly to Stripe, Square, and PayPal to get paid that way, or accept ACH and check payments.
Service & Product Discounts
The Novo Perks program provides discounts on business products and services, including popular business platforms like Stripe, Google Cloud, QuickBooks, Gusto, and HubSpot.
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 User Reviews
Users Like | Users Don't Like |
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On Trustpilot1, Novo has a rating of 4.1 out of 5 stars, based on 2,000-plus reviews. However, many recent reviews say that the business checking platform is unreliable. Multiple customers reported incidents of Novo rejecting check deposits without providing any explanation. Other users said that they struggled to transfer funds through the Novo platform.
It is also common for users to criticize Novo’s lack of live customer service options, which made it difficult to reach customer service in emergencies (Novo recently added a phone support line to remedy this concern). Additionally, many said that Novo’s email support team is slow to reply to messages.
Users liked that Novo charges no fees and makes it easy to open an account. Many satisfied customers also said that they found the platform’s user interface (UI) easy to navigate.
Bottom Line
If you’re looking for affordable business checking and don’t need access to in-person banking services, Novo is a good choice. The platform is particularly suitable for businesses that use Stripe for payment processing since the Novo Boost feature provides faster access to Stripe payouts. However, its lack of savings or lending products makes it a bad choice for businesses that want all their banking activity under one provider.
User reviews reference
1Trustpilot