Novo is an online banking platform designed specifically for small businesses, freelancers, and startups. Offering a powerfully simple business checking account with minimal fees and a user-friendly interface, Novo has gained a reputation as one of the best options in the market for small business owners. With features like no hidden fees, easy transfers, and FDIC insurance, the Novo Business Banking platform presents a compelling alternative to traditional brick-and-mortar banking.
Not only does Novo offer a free checking account tailored to small businesses, but it also takes the experience to the next level by integrating with various apps and providing reimbursements for transactions at any ATM worldwide. Moreover, Novo’s account is highly and perfectly suits the needs of freelancers, startups, and self-employed individuals.
In this article, we’ll dive deeper into the features and benefits of Novo’s small-business checking account, offering insights into how their platform can support your business’s financial growth and streamline operations. From seamless app integrations to fee structure and customer support, we’ll provide a comprehensive analysis of Novo’s offering and help you determine if it’s the right fit for your business.
About Novo Bank
Novo is a fintech company that provides small-business bank accounts in partnership with Middlesex Federal Savings F.A., member FDIC, to serve business users across the United States. By collaborating with Middlesex, Novo is able to offer FDIC-insured accounts with minimal fees and a strong digital banking experience.
Novo’s business checking account is designed to cater to the needs of small businesses by offering a fee-free and simple banking solution. The account comes with no monthly fees, no minimum balance requirements, no transaction fees, and no incoming wire fees.
Although Novo is not a bank itself, its partnership with Middlesex Federal Savings Bank ensures that account holders have the safety and security of FDIC insurance up to the legal limit of $250,000. Novo’s digital banking platform is accessible from anywhere, and it aims to expand its offerings in the future to include other business banking services, such as business loans.
Features and Benefits
Novo’s free business checking account is designed to cater to the needs of freelancers, startups, and self-employed individuals. With a host of features and benefits, this account aims to make business banking seamless and hassle-free.
Some of the standout features of Novo include:
- No monthly fees – Novo offers a truly free business checking account without any hidden charges, making it an attractive option for small businesses.
- Easy transfers – The account provides free ACH transfers, mailed checks, and incoming wire transfers, simplifying the process of managing business transactions.
- Apply in minutes – The application process for opening a Novo business checking account is quick and can be completed online in just a few minutes.
- Integration options – Novo offers integration with popular business tools and platforms such as Stripe, QuickBooks, and Zapier, making it easier to manage various aspects of your business.
- Unlimited ATM refunds – Novo users can avail unlimited refunds for ATM fees charged by any bank within the United States.
Furthermore, the Small Business Interest Checking account provided by Novo allows users to earn up to 1.01% APY on balances below $50,000. However, this option requires an initial deposit of $100.
With these features and benefits, Novo’s business banking services cater to the financial needs of small businesses while ensuring an effortless banking experience.
Requirements and Application Process
Novo caters to entrepreneurs and small businesses by offering a free checking account designed specifically for their needs. One key aspect that makes Novo stand out is the absence of recurring or hidden fees, ensuring smooth and cost-effective business banking for their customers.
To open an account with Novo, the primary requirement is to be a registered business within the United States. This includes sole proprietorships, partnerships, LLCs, and corporations. Novo accepts businesses that are listed as a valid legal entity with the the necessary documentation.
The application process is simple and takes place entirely online. You’ll need the following documents and information to submit your application:
- EIN or SSN for sole proprietorships
- Business registration details (e.g., state of formation, business address)
- Personal identification of the company’s beneficial owners (e.g., passport or driver’s license)
Although Novo does not require a minimum balance to maintain the account, they do request an opening deposit of $50 to unlock its features.
Offering an easy and fast application process, Novo aims to provide a hassle-free banking experience for small-business owners seeking a reliable and fee-free checking account.
Fees and Pricing
Novo’s primary selling point is its free business checking account. The account comes with no monthly service fees, no minimum balance requirements, and no transaction fees. This makes it an attractive option for small businesses, freelancers, and self-employed individuals looking for a cost-effective banking solution.
Novo also does not charge any fees for incoming or outgoing domestic wire transfers, making it suitable for businesses that conduct frequent transactions. International wire transfers do incur a fee, but it is relatively low and competitive in the market. Additionally, there is a small fee for returned checks due to insufficient funds or other reasons.
One of the highlights of Novo’s business banking platform is the unlimited ATM fee reimbursement. Users can withdraw cash from any ATM worldwide without worrying about fees, as Novo will reimburse the charges. This feature is particularly useful for businesses that require frequent cash withdrawals or those that travel often.
Here’s a quick summary of Novo’s fees and pricing structure:
- No monthly service fees
- No minimum balance requirements
- No transaction fees
- Free incoming and outgoing domestic wire transfers
- Competitive fees for international wire transfers
- Returned check fees
- Unlimited ATM fee reimbursement
Pros and Cons
Novo offers a variety of benefits for small-business owners and freelancers seeking a hassle-free banking experience. One of the primary advantages of Novo is its lack of fees associated with its business checking account, unlike some major competitors. This includes no monthly fees, providing cost savings for users.
Another notable benefit is the unlimited ATM refunds provided by Novo, allowing easy access to cash when needed without additional charges. Furthermore, Novo is known for its extensive range of integration options, making it ideal for those who rely on various software applications for managing their business.
However, there are a few drawbacks to consider when evaluating Novo’s business checking account. As an online-only platform, users should be aware that Novo may lack some features found in traditional brick-and-mortar banking institutions.
Here is a summary of the pros and cons:
| Pros | Cons |
|---|---|
| No fees associated with the business checking account | Lacks some features of traditional checking accounts |
| Unlimited ATM refunds | Online-only platform, no physical branches |
| Wide range of software integrations | — |
Customer Support and Reviews
Novo offers a relatively easy-to-reach customer support service through different channels. Their primary method of communication is via email, allowing users to seek assistance at support@novo.co. For more immediate concerns, Novo also provides in-app chat functionality, enhancing their user experience and responsiveness to questions and issues.
In terms of customer reviews, Novo has received generally positive feedback from small business owners, entrepreneurs, and freelancers. According to a Trustpilot review, Novo is highly regarded by users for its powerfully simple business banking services. With over 175,000 small businesses using the platform, trust in the company is well-established in this regard.
Aside from its free business checking account, users appreciate Novo’s integration options, making the platform suitable for those who require seamless financial management. Recommends Novo for freelancers, startups, and self-employed professionals who want a hassle-free and efficient banking solution.
However, it’s important to note that some users might have concerns or criticisms specific to their experience with Novo. It’s essential to consider individual requirements and preferences when deciding to choose Novo, or any other banking platform, for one’s small business needs.
Comparisons with Competitors
When comparing Novo’s free small-business checking account to its competitors, there are a few key factors to consider, such as fees, app integration, and interest-bearing options.
Bluevine, for example, is another online-only banking option offering free business checking accounts with no fees. Both Bluevine and Novo are among the best in free business checking options. However, unlike Novo, Bluevine offers an interest-bearing checking account, making it an attractive option for businesses that want to earn interest on their balances.
Another competitor is Relay, which, like Novo, provides a free small-business checking account with no monthly fees. Both banks offer similar features, but Relay may be a better choice if you need multi-user access and more advanced financial automation.
Features of Novo and its competitors:
| Bank | No Monthly Fees | Interest-Bearing Account | App Integrations |
|---|---|---|---|
| Novo | Yes | No | Yes |
| Bluevine | Yes | Yes | No |
| Relay | Yes | No | Yes |
Ultimately, the choice between Novo and its competitors depends on the specific needs of your small business. While all three banks offer free checking accounts, it is essential to consider additional factors such as interest-bearing options and app integration to make an informed decision.
Conclusion
In summary, Novo offers a compelling banking solution for small businesses, freelancers, and self-employed individuals with its free checking account. The lack of fees and an extensive range of integration options make it an attractive choice for managing business finances.
The account’s user-friendly app, worldwide ATM reimbursement, and strong customer support further enhance its appeal. However, potential customers should also consider competitors and evaluate the features that best align with their business needs.
Ultimately, Novo’s business banking platform is a solid choice for small business owners seeking a fee-free, easy-to-use banking solution with various digital tools designed to simplify operations and financial management.