Novo vs. BlueVine Business Banking 2022

Researching and comparing business banking options may not be a business owner’s favorite task, but understanding the differences between banks could save a company significant money. When it comes to Novo vs. BlueVine business banking options, the differences between interest rates, ATM access, monthly minimums, and fees can be the determining factor.

Both banks are online banks. Novo is backed by Middlesex Federal Savings Bank, and BlueVine is FDIC-insured up to $250,000 despite being considered an “alternative lender.”

While both Novo and BlueVine have drawbacks, their features can make them attractive to small business owners who don’t require physical locations.

Here’s what you need to know when comparing Novo vs. BlueVine business banking services.

What is Novo Business Banking?

Novo is an online bank, backed by Middlesex Federal Savings Bank. They offer accounts and tools for business owners. Customers are attracted to their unlimited ATM charge refunds, built-in invoicing, and suite of business tools. However, they don’t allow cash deposits. Customers must get a money order and deposit via their mobile app.

Novo doesn’t charge monthly fees, but they do have a low withdrawal limit of $2,000 per day. However, the high mobile check deposit and ACH payment limits can make them a great option for business owners who have high payment and deposit needs.

What is BlueVine Business Banking?

BlueVine is categorized as an “alternative lender,” but it’s FDIC-insured for all accounts up to $250,000. BlueVine’s greatest feature is that each account accrues 1% in interest every year. That can net some significant rewards. While the average checking account APY is 0.04%, loyal, long-time customers will enjoy a large increase in interest rate through BlueVine.

One of BlueVine’s other draws includes invoice factoring. Invoice factoring is when a company exchanges the rights to future accounts receivable in order to get money today. In other words, it functions almost as a temporary line of credit. As long as other vendors owe you money, you can use invoice factoring for a quick cash influx.

BlueVine offers both business checking and savings accounts.

Novo Business Banking Pros and Cons

Novo’s business banking options have several pros and cons. Their fee-free model is great for small businesses operating on tight profit margins. Here are some of the biggest advantages and drawbacks:

  • Subaccounts: Instead of opening up separate accounts for your funds, you can create subaccounts from your main checking account. This feature, called Novo Reserves, allows you to separate funds for savings and more.
  • Fee-free ATMs: You will be refunded when you use an ATM anywhere in the United States. That makes up for the lack of physical locations. Because you can use any ATM to access your Novo account, you’ll never be too far away from your funds.
  • Invoicing features: Novo offers invoicing features to track, send, and remind your customers to pay invoices on time. Not only does the bank accept all payment types, you’ll also receive an email as soon as an invoice is paid, which can save business owners a lot of time and hassle.
  • Mobile app and online banking: Enjoy the convenience of online banking. Either log in to Novo’s website or use their mobile app to review your account on the go.
  • Software integrations: Novo allows customers to integrate with QuickBooks, Stripe, Shopify, and other business tools. This can make your accounting a breeze and help you maximize your company profit.
  • Unlimited free transactions: Make domestic and international payments for free through paper checks or ACH transfers.
  • Discounts with partners: Novo’s partners, including GoDaddy and Snapchat, offer discounts and other perks to Novo account holders. It’s a great option if you’re already considering using these services.
  • No cash deposits: The biggest drawback to Novo’s business banking solutions is their refusal to accept cash deposits. Business owners will instead need to purchase a money order and send it to the bank. That’s a huge hassle if your company deals with a lot of cash transactions.
  • No recurring payment feature: Novo also lacks a recurring payment feature. You’ll still be able to make unlimited fee-free payments, but you can’t set up your account to pay them automatically.

BlueVine Business Banking Pros and Cons

BlueVine also has its share of pros and cons. Unlike Novo, you can make cash deposits through GreenDot—and they also boast a fee-free model. Here’s what to expect from a BlueVine business account:

  • Convenient online access: BlueVine is an online bank, so there are no physical locations. However, between their easy-to-use website and their ATM network, they’re convenient to use anywhere in the United States.
  • Easy to use: Setting up an account with BlueVine can be done online and takes just a few minutes to complete. While it may take some time to receive your business debit card, you can complete the application process and open your account within minutes.
  • Great customer service: Although there are no physical locations, BlueVine is known for their strong customer service. Telephone and email customer support is available on weekdays, although that can be frustrating for business owners working on the weekends. 
  • Software integrations: Like Novo, BlueVine accounts can integrate with common business software like QuickBooks, Shopify, Stripe, and more. This makes it easier to keep track of your business accounting.
  • Good interest rates: BlueVine’s interest rate is significantly higher than the national average. If you’re hoping to earn a little extra money with your business checking account, BlueVine is a good option.
  • ATM access: A partnership with GreenDot enables convenient ATM access across the United States.
  • GreenDot fees for deposits and transfers: Keep in mind that while GreenDot provides additional BlueVine support, there are fees involved when making deposits and transfers. Customers will pay $4.95 for each cash deposit and $15 for outgoing wire transfers.
  • No incoming wire transfers: You cannot use your BlueVine account to receive incoming wire transfers. That alone can be enough of a drawback for businesses that send and receive frequent wire transfers.
  • No joint accounts: BlueVine does not allow joint accounts, even between business partnerships. That may be enough of an inconvenience to make you look elsewhere if you wish to have a joint account with a business partner.

Novo vs. BlueVine for small business owners

Novo and BlueVine both offer simple business checking options for small business owners. If you’re looking for basic, fee-free options, both banks will get the job done, but each bank’s individual pros and cons may weigh your selection in one direction.

Novo

Novo’s fee-free structure makes it easy for small business owners to manage their accounts and integrate with their existing business tools. The lack of minimum balance requirements and widespread ATM access is a great choice for tech-savvy owners. As long as you’re comfortable with the restrictions, like lack of physical locations, no cash deposits, and no recurring payments, they’re an attractive option for small businesses.

BlueVine

BlueVine also embraces a fee-free structure—except when making deposits and outgoing wire transfers. Their superior interest rates mean you could make about 25 times more interest than the national average. That puts a little extra cash back into your business, or at least pays for deposit and wire transfer fees. On the other hand, not being able to receive incoming wire transfers or create a joint account can be frustrating.

Which one’s right for you?

Because these banks offer similar features, the drawbacks are often what makes or breaks a selection.

With Novo, you’ll sacrifice time and money whenever you need to make a cash deposit. Going to purchase a money order every time you want to make a cash deposit is a time-consuming hassle—and the cost of the money order can eat into your profits. The lack of recurring payment options is also frustrating for businesses with regular monthly payments.

BlueVine, on the other hand, charges significant fees for cash deposits and wire transfers. Like with Novo, account owners will have to sacrifice profit for basic conveniences you’d get at a larger bank. Plus, you won’t be able to receive incoming wire transfers or add someone else to the account as a joint owner.

If your company deals in significant cash deposits, you might want to skip both of these banks. If, however, the majority of your payments are electronic, either can be a simple, easy, and convenient option.

Conclusion

The ultimate decision between BlueVine and Novo comes down to your business size, transaction needs, and profitability. Small business owners hoping to avoid exorbitant monthly fees should consider either of these banks. Convenient software integration and ATM access make both companies a viable choice for any small business owner.

On the other hand, because these banks are online lenders, you won’t get all the perks you might at a traditional, physical bank. If you lack tech skills or simply like interacting in person, opt for a bank with physical branches.

When it comes to Novo vs. BlueVine, you’ll enjoy the fee-free structures—but be sure to review the pros and cons carefully.