Novo Business Checking Review 2024

• Pros and Cons
• What is Novo Business Checking?
• Key Features
• Benefits for Business Owners Label
• Fees and Charges
• Opening a Novo Business Checking Account
• User Experience and Customer Support
• Is Novo Trustworthy?
• FAQs
• Novo Business Checking Review
• How Novo Compares
• Why You Should Trust Us

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Novo Business Checking is a solid free business checking account. It has a $0 minimum opening deposit and no monthly service fee. But it's an online-only platform, so you'll want to look elsewhere for in-person business banking. See how Novo Business Checking compares to the best free business checking accounts.

no monthly service fee

None

$0

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. No minimum opening deposit
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. No monthly service fees
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Unlimited free monthly transactions
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. No incoming domestic or international wire transfer fees
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. May send international wire transfers through Wise
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Connect Novo to tools such as QuickBooks, Slack, and TransferWise
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Refunds up to $7 per month in ATM fees

• con icon Two crossed lines that form an 'X'. No physical locations
• con icon Two crossed lines that form an 'X'. Depositing cash requires extra steps (getting a money order)
• con icon Two crossed lines that form an 'X'. Can't send domestic wire transfers

Novo Business Checking is a pretty solid free business checking account. It has a $0 minimum opening deposit and no monthly service fees, and it refunds up to $7 in ATM fees per month. But it's an online-only platform, so you'll want to look elsewhere for in-person business banking.

• Link to QuickBooks, Shopify, Slack, Xero, TransferWise, Zapier, and Stripe
• Send international wire transfers with low fees through Wise; Use the "Integrations" tab of the Novo app
• No ATM network, but refunds up to $7 per month in ATM fees
• Deposits are FDIC insured through partner bank, Middlesex Federal Savings, F.A.

Novo Business Checking Pros and Cons

What is Novo Business Checking?

Novo is a free business checking account with unlimited free monthly transactions. The account comes with a debit card.

Even though Novo doesn't have an ATM network, it refunds up to $7 in ATM fees per month.

 You can make free ACH transfers, which take two to three business days. Novo also offers express ACH transfers if you need to send a transfer quickly, but there's a fee involved. 

Novo Business Checking Key Features

Lenient Minimum Balance Requirements

You can open Novo Business Checking with $0. It also doesn't have any minimum balance requirements.

It's a good option if you don't have much money to open a business checking account. Other banks may have higher minimum opening or balance requirements.

Integration with Business Tools

You can connect Novo to several notable payment and workflow apps to manage your business more effectively. Some examples include Stripe, Square, Slack, Wise, Quickbooks, eBay, and Etsy. Novo doesn't charge any setup fees for connecting accounts.

ATM Refunds

Novo won't charge you bank ATM fees if you use an ATM from an outside provider. It also reimburses up to $7 monthly if an ATM provider charges you fees. Still, Novo doesn't have its own ATM network, so it is not the best option if you frequently use ATMs each month. Consider other online banks if you want unlimited ATM fee reimbursements or banking options with robust ATM networks.

Novo Benefits for Business Owners

Novo Payroll

In January 2024, Novo launched a payroll provider called Novo Payroll. This service has a $35 monthly fee. There are also monthly fees of $5 per employer and $3 per contractor. You can have up to 40 employees listed in Novo Payroll and an unlimited number of contractors.

Invoices

Novo also has invoicing services. You can customize invoices and send an unlimited amount. There aren't fees for creating and sending invoices.

Novo Business Checking Fees and Charges

Novo Business Checking has no monthly service fee, no overdraft fees, and no incoming wire transfer fees.

If you want to send an ACH transfer that gets sent more quickly than standard transfers, Novo charges a 1.5% fee based on the total amount of the transaction. The minimum express ACH transfer fee is $0.50, and the maximum is $20.

There also may be fees if you want to deposit cash into your business checking account. Novo doesn't have physical locations or ATMs, so you'll have to take extra steps to deposit cash into your account. You must buy a money order and then make a mobile check deposit. Depending on where you buy a money order, the cost can be up to $5 for each one.

Opening a Novo Business Checking Account

You can open the Novo Business Checking Account online anywhere in the United States.

To open the business bank account, you must have a US driver's license, US state ID, or passport. Additional business documentation is also required to apply. The exact documents you'll need will depend on the type of business you have and the state you live in. Some examples of business documentation include Certified Articles of Incorporation, Certified Articles of Organization, and a trade certificate.

You won't be able to open an account if you have a Series LLC or complex business structure. Novo may also deny your application if you have a cryptocurrency business, privately-owned ATM business, marijuana business, gambling business, crowdfunding business, or money service business.

Novo User Experience and Customer Support

Novo is an online banking platform, not a bank. But it's partnered with Middlesex Federal Savings Bank, which is in charge of the platform's banking. Middlesex Federal Savings is FDIC-insured, so individual accounts are protected for up to $250,000.

If you have any questions, Novo has an extensive FAQ section on its website for common questions. You can also email or use live chat.

The Novo app has a 4.8 out of 5 rating from the Apple store and a 4.7 out of 5 rating from the Google Play store.

Is Novo Trustworthy?

We use ratings from the Better Business Bureau to see how businesses deal with customer complaints. Novo has an F rating from the BBB because it has over 100 customer complaints on the BBB website, hasn't responded to one complaint, and has two unresolved customer complaints. 

In 2022, Novo entered into a settlement with the California Department of Financial Protection and Innovation stating that Novo would no longer use the word "bank" or "banking" to describe its products, since it is not a registered bank. (Its products are sponsored and insured by Middlesex Federal Savings Bank.)

Novo Business Checking FAQs

No, Novo is not a bank. It's a fintech company that offers a business checking account. However, it is backed by Middlesex Federal Savings Bank, which allows it to offer certain financial products.

Novo Business Checking doesn't have common bank fees. Most traditional business bank accounts have monthly service fees, minimum balance requirements, and overdraft fees to be mindful of.

Novo lets you receive domestic and international incoming wire transfers, but you can't send any outgoing wire transfers. You can make ACH transfers, though. Novo also lets you connect with Wise, which you can use to send money internationally.

Novo lets you connect to business accounting and sales platforms like Gusto and Quickbooks.

Novo Business Checking doesn't have monthly service fees, overdraft fees, or incoming wire transfer fees. There is a fee for same-day ACH transfers. If you want to deposit cash into your account, you may have to pay fees to buy a money order.

Novo has customer support through email. You can also use live chat on the Novo app to talk to support.

Novo Business Checking Review

The Novo Business Checking Account is a solid option for business owners comfortable managing an online-only account. It also may be worthwhile to avoid most common bank fees, like overdraft fees or monthly service fees.

You may prefer a different business checking account to deposit cash or use ATMs frequently. There isn't a direct way to deposit cash on the Novo Business Checking account. You'll have to get a money order and make a mobile check deposit to deposit cash. Novo also doesn't have an ATM network and only reimburses up to $7 per month in ATM fees.

How Novo Compares

Novo Business Checking vs. Bluevine Business Checking

Novo and Bluevine are both fintech platforms that offer business checking accounts. The Bluevine Business Checking Account is a great option for earning interest.

Bluevine also lets you make free withdrawals at MoneyPass ATMs, but it charges a $2.50 out-of-network ATM fee. Novo doesn't have an ATM network but offers a more lenient approach to outside ATM fees in comparison to Bluevine. It doesn't charge ATM fees when you use outside providers and reimburses up to $7 in ATM fees per month.

Bluevine Business Checking Review

Novo Business Checking vs. Axos Business Banking

Axos Bank is the better option if you want to open more than just a business checking account — it also has business savings, CD, and money market accounts. It offers unlimited ATM fee reimbursements, while Novo only reimburses up to $7 per month in ATM fees. You also might be eligible for a cash bonus of up to $400. Novo is still a strong business checking account, but its offerings aren't as competitive as the best free business checking accounts.

Axos Business Banking Review

Why You Should Trust Us: How We Reviewed Novo

To review the Novo Business Checking account, we used our business checking account methodology. We look at ethics, the mobile app, customer service, ATM networks/fees, transaction limits, minimum deposits, and monthly service fees. Then we assign an account a rating between 0 and 5.

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