The Bottom Line: Bank Novo is a powerfully simple business banking platform with no hidden fees built for small business owners. Simplify your business finances with Novo.
Best Online Business Banking
AT A GLANCE
- No-fee business checking accounts
- Free ACH transfers, mailed checks, & incoming wires
- Banking at your fingertips anywhere, anytime
- Insured through Middlesex Federal Savings
N/R BBB Rating
Average review rating 3/5 on TrustPilot
Pros & Cons
There are lots of reasons to sign up for Bank Novo, it's not for everyone. Here are a few advantages and disadvantages of choosing this bank.
For small business owners, especially those just starting out, probably want a bank that is convenient to use and one that doesn’t charge an arm and a leg on fees.
Online-only banks like Novo are rising in popularity because of features that are convenient and easy to use.
Launched in 2018, Bank Novo is new to the game but is quickly becoming a competitor in the business bank space, offering features like no fees and unlimited transactions.
It offers business owners the ability to apply for a bank account within minutes, which can be faster than other brick and mortar locations.
Account Minimum: $0
Monthly Fees: $0
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It may not have all the features of a traditional business checking account, but it has plenty that’ll enable you to run your business smoothly.
If we’ve peaked your interest, keep reading because in this Novo Bank review we’ll dive in the features so you can assess whether this account is the right fit for your business banking needs.
What is Bank Novo?
Based in New York, Bank Novo is an online-only bank that has no physical branches.
It uses Middlesex Federal Savings bank to manage customer accounts and debit cards.
Accounts are held in this FDIC-insured bank but the website and all will look and feel like Bank Novo.
Account holders can manage their account through their computer, laptop or through their mobile app, available in both Android and iOS.
Since it’s an online-only bank, Bank Novo is best for business owners who are fine with not having physical branches and managing their money through the app or online.
Business Checking Account
Bank Novo was created specifically for small business owners and startups — simply sign up for an account online by providing basic personal information.
This includes your name, Social Security number, address, and business information such as the type of business entity you own.
After opening your account, you can use it to link other bank accounts, process ACH transfers, deposit checks, and make payments.
You can also use your EMV chip protected debit card, free from Novo.
To be eligible for a Bank Novo account, you need to have a U.S. based business and be the owner (it doesn’t matter what entity type you are).
You can be in almost any industry, except if you have privately owned ATMs, provide or exchange cryptocurrency, or are in the cannabis sales, money services and unlawful gambling industry.
Now that you know a bit more about the basics of Novo’s business checking account, let’s dive in a bit more to see what else you can do with their account.
Here are a few tasks you can do:
Unfortunately you can’t deposit cash into your Novo account.
To be able to do so you’ll need to purchase a money order then deposit that using Novo’s app.
That’s because the Novo doesn’t have a designated ATM network or brick and mortar locations.
Plus, you need to issue physical checks since Novo uses ACH transfers.
Like previously mentioned, account holders will get a Novo Mastercard business debit card.
It’s EMV chip protected and you’ll get Mastercard’s zero liability policy for your authorized purchases.
You have the ability to use your debit card globally and with Apple and Google Play.
Bank Novo’s app has plenty of features as well. You can set up your bank account for multiple user access.
You’ll also be able to receive instant notifications for all your transactions and integrate with payment gateways such as Stripe and Paypal as well as tools like Slack, Xero, and Zapier.
You can also integrate it with Transferwise, but can’t send funds with Transferwise through the app.
Your bank statements are sent to your business mailing address by default. You can also export your transaction data from the app via a CSV file, which is compatible with Quickbooks and Xero.
Powerfully Simple Business Banking
Built for small business owners, entrepreneurs, and freelancers. No hidden fees, no hassle.
One of the major perks with Bank Novo, like many other online-only banks, is that there is a lack of fees.
Seriously, there are hardly any fees. For one, there are no monthly fees or minimum amounts.
All you need is a $50 initial deposit in order to open an account.
Other features that are completely free include check deposits, debit card replacement, incoming wire payments, ACH payments (incoming or outgoing), paper statements, and processing and mailing physical checks.
Account holders don’t have to pay to access ATMs — you can withdraw up to $1,000 each day.
However, even though Bank Novo doesn’t charge you a fee, the ATM owner might charge you one (there may be a prompt on the ATM asking you to agree to this fee).
There are also no limits in transaction volume unlike other competitors that may charge you after a certain amount.
As in, you can transfer as much as you want nor are there minimum or maximum deposit amounts.
However, Novo suggests that you contact their support team if you anticipate making a large payment or will be getting a large deposit.
That way, your transaction won’t risk being seen as fraudulent activity.
The only two fees that Bank Novo seems to charge are uncollected funds that are returned and insufficient funds.
If you happen to overdraft on your account, you’ll have to pay a $27 insufficient funds fee.
You’ll get charged the uncollected funds fee when you try to spend money that isn’t yet available in your account.
For example, you’ll be charged a $27 fee if you try to spend money from a check you deposited that hasn't been cleared yet.
Novo vs. Competitors
Should I Open a Bank Novo Business Checking Account?
Opening a business bank account is a pretty important decision since it can affect the day to day life of our organization.
You need to figure out how you work best and what your preferences are.
If you want a bank with no fees and no minimum balances, Novo has got you covered.
Same if you desire an online-only bank that has an app that’s easy to use and offers a number of features that you can do your banking on the go.
Unfortunately, if you tend to use the ATM a lot, then fees can add up — you’re better off finding a bank with a dedicated ATM network.
Same goes if you deal with a lot of cash transactions as it might be a bit of a hassle to have to get a money order first before you can make a deposit via the app.
Plus, if you want more than one type of account, then you’ll want to consider more traditional banks that offer online banking options at a low cost — some have apps that are intuitive to use.
That’s not to say Novo isn’t worth taking a second look at.
Rather, you need to see what it is that you want in a bank right now and in the future.
Sure, Novo may not have some of the features larger banks do, but that doesn’t mean it won’t in the future.
Bank Novo is a powerfully simple business banking platform with no hidden fees built for small business owners. Simplify your business finances with Novo.
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