Novo Bank Review 2021: A Small Business Banking Option With No Monthly Fees

Novo Bank Overview

Novo is an online banking option that offers a single product — a business checking account. The account makes it easy for small business owners, entrepreneurs and freelancers to manage transactions on the go.

Founded in 2016, Novo has no physical locations and is ideal for business owners who are comfortable with digital banking. While it doesn’t offer every feature traditional checking accounts provide, Novo does offer some perks that entrepreneurs can make the most out of. Plus, there are hardly any fees associated with its account.

Novo is not a bank, but rather it’s an independent tech company. Novo offers its business checking account through its FDIC-insured partner, Middlesex Federal Savings, meaning you’ll get up to $250,000 worth of protection on funds in your account. With Novo, you get the fund protection of a traditional bank coupled with a powerful suite of digital tools built for small businesses.

Novo Features

Here’s a look at some of the best benefits Novo has to offer.

Intuitive Mobile and Digital Experience

Novo has an intuitive online banking website and mobile app to help you manage your account with ease. The fintech company says you can apply for a business checking account in under 10 minutes.

Remote Check Deposits

Novo allows unlimited remote check deposits directly from your mobile device. All you need to do is take a photo of the check and upload it to the app. Depositing a check with Novo is free of charge.

Novo Reserves

With Novo Reserves, you can set money aside for different financial goals, including profits, taxes and other business expenses. You can manage up to five reserves and instantly move funds in and out of your reserves.

Invoicing

You can easily create, send and track invoices with Novo. Plus, you can accept debit and credit card payments for your invoices via Stripe.

Integrations and Perks

Novo integrates with many tools that you’re probably already using in your business. It offers integrations with QuickBooks, Slack, Shopify and Stripe, among other options. Further, you’ll get access to perks with companies like Booking.com, Google, HubSpot, Zendesk, Salesforce and more.

Novo Fees

Novo does not charge monthly fees or have minimum balance requirements. Even if you incur charges for using your debit card at ATMs, Novo refunds all the fees. The only fees you have to worry about are for insufficient funds and uncollected funds, both of which come with a $27 charge.

Novo vs. Competitors

Here’s how Novo compares with some of its competitors:

Is Novo Right for You?

Deciding whether Novo is right for you depends on your financial goals. If you’re a business owner looking for an easier way to manage your money online without incurring fees, this might be a great option. But if you need a banking solution that offers a savings account or access to loans and other services, Novo may not be perfect for you.

With all the features that business owners can benefit from, Novo’s free business checking account is definitely worth it for some. But if you have other banking needs, like interest or cash deposits, you may want to look at other alternatives.

Data is accurate as of Sept. 22, 2021, and subject to change.

Editorial Note: This content is not provided by Novo. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by Novo.

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