Novo Business Banking Review: Free Business Checking Account
Personal Finance Insider writes about products, strategies, and tips to help you make smart decisions with your money. We may receive a small commission from our partners, like American Express, but our reporting and recommendations are always independent and objective.
The Novo Business Account is featured on Insider’s list of best free business checking accounts.
The account requires a $50 minimum deposit to open and get all of Novo’s features. You can link other bank accounts or deposit checks to manage your money and make transactions.
The Novo Business Account features management tools such as
Slack
, QuickBooks, and Shopify. It also comes with cash-back perks from companies like Stripe, Google Ads, and HubSpot.
The account comes with a debit card. Even though Novo doesn’t have an ATM network, you can get refunds on all ATM fees.
If you are looking for a bank with business savings accounts or accounts that accumulate interest, then you’ll want to use another online banking platform. Right now, Novo only has a business checking account option, and it doesn’t pay any interest.
The account also doesn’t allow you to make outgoing wire transfers. You can only make free ACH transfers, which take about two to three business days. If wire transfers are important for your business, you also may want to consider some alternative options.
Annual Percentage Yield (APY)
None
Pros
- $50 minimum opening deposit
- No monthly service fees
- Unlimited free monthly transactions
- No incoming domestic or international wire transfer fees
- Connect Novo to tools such as QuickBooks, Slack, and TransferWise
- Refunds all ATM fees
- Perks like cash back and savings with companies such as Google Ads, Stripe, and Booking.com
Cons
- No physical locations
- No way to deposit cash
- Can’t send wire transfers
- Link to QuickBooks, Shopify, Slack, Xero, TransferWise, Zapier, and Stripe
- Earn perks like cash back and savings at companies
- No ATM network, but refunds all fees charged by ATM providers
- Deposits are FDIC insured through partner bank, Middlesex Federal Savings, F.A.
How Novo business banking works
Novo is an online banking platform, not a bank. However, it is 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 up to $250,000.
If you have any questions, Novo has an extensive FAQ section on its website for common questions.
Novo users who need more detailed customer service support can contact customer service through phone, email, or the Novo app, Monday to Friday from 9:00 a.m. to 6 p.m. EST. However, if you don’t have an account, your only point of contact is through email.
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?
In recent years, Novo hasn’t gone through any public controversies.
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 received 15 customer complaints and failed to respond to three of them.
A good or bad BBB rating isn’t the end all be all, though. To get a better idea of whether a banking platform will meet your specific needs, talk to other business owners about their experiences or read online customer reviews.
How Novo compares to similar institutions
We’ve compared Novo business banking to two other online banking platforms that are on our list of the best business checking accounts: Brex and Axos Bank.
Novo vs Brex
Brex has a cash management account, which is essentially a combination of a checking and savings account. Online banking platforms offer cash management accounts so that you can manage your money all in one place.
You may prefer Brex if you want an account that allows you to make wire transfers at no cost. However, if you want an account with a debit card option, Novo may be a better fit. Brex only provides a credit card.
Novo vs Axos Bank
If you want business banking with multiple account options, Axos Bank may have more of what you’re searching for. Axos Bank offers business savings, checking, CDs, and
money market accounts
. It also offers savings and checking options with interest.
For keeping things simple and avoiding transactions fees, you may favor Novo. The Axos Bank Basic Business Checking Account account has a 200 free monthly transaction limit, while the Novo Business Account allows you to make unlimited free transactions.