Novo Bank Review 2022: Small Business Checking

It is a new venture, starting in 2016, but has quickly become a popular online-only bank. Novo Bank has mobile apps for iOS and Android as well as its desktop site and prides itself in ease of use and accessibility. One click on the home page gets you underway with your account application. 

All legally registered businesses with owners over the age of 18 and legally allowed to work in the US can quickly make an account with Novo Bank. While there is a $50 minimum opening deposit required, once your account is created you can keep as little as $1 in your account and not incur any fees or restrictions.

What is Novo Bank?

Novo is a business checking account which has no monthly fee and is offered in partnership with Middlesex Federal Savings Bank. Novo is a leading online bank which is taking on large business banks with easy-to-use features and a suite of digital business tools. 

This checking account boasts highly-useful pros like unlimited refunds for ATM charges but does have some issues including not offering cash deposits. 

Novo Bank Pros and Cons

Novo has a number of pros which makes it an attractive alternative to big bank competitors as well as some online bank competitors. There are also a few cons you should be aware of before making a final decision. 

Pros of Novo

Free ATM Access

Novo offers free ATM access (domestic and abroad) with no restrictions along with its lack of fees. The only instance a fee will appear will be for insufficient funds or a fee for uncollected returns both being $27. Most online focused banks offer free ATM access with limited partners, but Novo has no restricted access and will reimburse all fees from other bank ATMs that charge them. 

Built-in Invoicing

Contractors and freelancers will find Novo particularly attractive because of its built-in invoicing feature which allows one to facilitate an unlimited number of invoices in a single account through ACH transfer with no fees whatsoever. 

You can also accept payments through your fully integrated Stripe account as mentioned before. Apple Pay, Venmo, and Google Pay can also be connected to your Novo Bank account. 

Perks From Partners

The directly integrated partners mentioned before will also offer perks to Novo account holders. For example, GoDaddy offers a 30% discount on all purchases to Novo Bank members and Snapchat offers account holders $150 credit towards ads on their platform.

Integrations With Leading Tools

Novo Bank offers full integration with many of the most popular business payment, advertising, and communication services. Direct integration is offered with QuickBooks, Xero, Stripe, TransferWise, Shopify, Zapier and Slack with other services in the works. 

Cons of Novo Bank

No Cash Deposits

While you do get free and unrestricted ATM access, you cannot deposit cash at all and with no brick-and-mortar Novo locations you must purchase a money order and deposit the check via the mobile checking feature. This would be an issue for businesses making frequent cash deposits. 

No Recurring Payments Features

Another notable Novo drawback is the lack of a recurring payments feature. While you can pay your bills fee-free you cannot set up a recurring payment for certain bills and business-related recurring payments despite this feature being common among many online banks.

You can, however, store the relevant payment information in your account so it is harder to forget. For freelancers and start-up small businesses these inconveniences may not be much of an issue. 

Novo Bank Pricing 

Novo charges nothing for banking access but there are fees you should be aware of when comparing options. 

The cash withdrawal limit is equivalent compared to NorthOne but you have a reduced mobile check deposit limit compared with NorthOne. Read our chart below to learn how Novo compares to NorthOne and BlueVine.

Who Novo Business Checking is Best For

Novo excels in ease of use, affordability for small businesses with limited resources, and flexibility with all ATMs available and again: no fees. 

This bank account also offers integrations with leading business tools like Shopify, Stripe, Quickbooks, and Freshbooks. Business owners who use these tools will benefit from connecting their bank account for easier accounting and transactions. 

Novo’s online banking is ideal for business owners and freelancers who don’t need to visit physical branches and want a convenient digital experience they can access anywhere. 

Bank Novo’s invoicing features make it easy for freelancers and contractors to send payment requests and accept payments via ACH payments or cards if you’re a Stripe user.

Who Should Reconsider Using Novo Bank

Novo is unideal for businesses operating with frequent cash transactions or a desire to have multiple business accounts for a single person. Novo Bank only allows a single business account per person for a registered business with Novo Bank. 

Also, if your business operates in the growing crypto-currency, gambling, or cannabis markets your account application will not be accepted by Novo. 

It is also not ideal for non-business-related customers as they only accept business accounts. If you enjoy being able to go to a brick-and-mortar bank, Novo would also not be for you. 

Novo Bank also charges $27 in fees for insufficient funds in your checking account. 

How Novo Bank Works

To apply for a Novo account, visit their site or download the app from the App Store or Google app store. Almost any business operating in the U.S. can apply for a Novo Bank account, even if you’re a sole proprietor or don’t yet have a legal business entity. 

As long as you have a social security number, U.S. address, and U.S. cell phone number, you can apply for a Novo Bank account. If you’re operating a corporation or partnership, you will need an EIN for your business. 

Key Novo Bank Features

There are a number of key Novo Bank features which make it attractive to business owners across the United States. Here’s why you should consider Novo Bank for your business. 

Novo Reserves

Novo Reserves allows you to set aside funds in separate accounts apart from your main checking account. Whether you want to save funds, set aside money as income for yourself, or plan for a larger purchase, you can create these sub-accounts right from your account. 

Integrations

Novo boasts integrations with leading business tools including Quickbooks, Freshbooks, Stripe, and Shopify to make business management easier. Whether you want to simplify accounting or keep better track of payments, you can do so with these integrations. 

Invoicing

Freelancers and small businesses can send invoices more easily with invoicing features to send, track, and get paid on time. Novo Bank accepts all payment types whether ACH or card payments through Stripe. You’ll receive an email when an invoice is paid. 

Full-Refunded ATM Access

All ATM withdrawals across the United States are refunded with Novo, making it easy to get cash wherever you are. 

Website and App Access

Novo’s easy-to-use website and app make banking easy on the go or from your office. 

Send Payments

Novo allows you to make payments internationally and in the United States with ease through ACH and paper checks. This bank option offers unlimited free transactions.

Conclusion

Novo Bank Business Banking is a leading challenger business bank which serves small businesses and freelancers with limited fees and a great banking experience. With features including free ATM access and powerful integrations, Novo is a top choice for businesses looking for a new bank.