Novo Bank Review 2024

Novo is a digital bank that offers free business checking accounts for small-business owners and entrepreneurs. Small businesses that use Novo can set up their account to give them an instant overview of everything from eCommerce sales to pending invoices and cash-on-hand.

Novo is more than a standard business checking account aimed at helping you accomplish basic banking tasks. The product makes it possible to pull data from other business tools like Stripe and Shopify, and then push data out to tools like Zapier, QuickBooks, and Slack. 

Novo offers online banking services through its dashboard and mobile app, allowing clients to make deposits and withdrawals via ACH, wire transfers, and mailed checks for free.

Direct integration with dozens of business apps, like Intuit QuickBooks, Xero, and Stripe, is another benefit you can enjoy with Novo. Our review will showcase the account features, fees, and requirements to help you decide if this digital banking platform is the right option for your business.

Novo Overview

Founded in 2016, Novo is a business banking platform specially designed for small-business owners, freelancers, and startup founders. The New York-based company is not a traditional bank, but a fintech company that provides banking services through an online platform. 

Novo’s mission is to provide the best financial services for entrepreneurs by offering them fast and direct integration with a range of business tools, including Square, Stripe, Shopify, QuickBooks, Xero, eBay, Slack, and many others.

Novo business checking account is the company’s only traditional financial product. Since Novo is not a bank, and a bank does not own it, its operations are supported by Middlesex Federal Savings F.A.

This bank and a FDIC member is Novo’s business partner;  meaning that business checking accounts are secured and protected, regardless of what happens with Novo. Each account is insured for up to $250,000 per depositor.

By combining traditional checking accounts for businesses with modern technology, Novo offers a user-oriented business account for secure and easy money transfers, and business accounts with no fees or minimum balance requirements.

Novo banking is completely customer-oriented: Aside from direct integrations with a wide range of business apps, Novo provides financial planning and budgeting tools to help you sort out your business finances and business expenses.

However, the main benefit of its business checking is that it’s completely online, so you can manage all transactions through the Novo app for iOS and Android.

During our evaluation process, we checked how the clients rate Novo’s services. According to Trustpilot reviews, this company offers secure and easily manageable business checking accounts.

Some recent complaints pertain to its automated customer support and lack of physical branches, but as Novo is fully digital, this is only relevant for clients completely reliant on face-to-face banking. If that’s you, Novo will probably not be the right choice.

Getting Started With Novo

As explained, Novo allows you to open a checking account for your business and manage it through an online dashboard and mobile app. There’s no physical branch where you can go to open an account, but this shouldn’t stop you from working with Novo, as the application is a simple, three-step process.

How to Apply

To start your application, just click on the “Get Started” button in the upper right-hand corner of the screen, right next to the login button.

Like with any other account for a small business, you’ll need to provide the necessary personal and business information to become a client. The company will review your application within two to three days after your document submission.

Requirements

If you want to become a client, you’ll need to meet certain criteria: First of all, each applicant has to prove their residence within the US. You’ll also need to provide the following information:

• Name and a US home address
• Proof that you are at least 18 years old
• Social Security number
• US cell phone number
• Driver’s license or passport
• Photo of your ID

Businesses Eligible for Novo Business Banking

Novo’s product is designed for small businesses, startups, and entrepreneurs registered in the US. Here’s a list of business entities eligible to open a checking account:

• LLCs
• Partnerships
• Corporations
• Sole proprietorships

You’ll need to provide the required business documentation, depending on the type of business you own. For example, if you run an LLC, you’ll be asked to submit the Operating Agreement and Certificate of Formation. The bank will also ask for state-specific documents.

However, do not worry: You will receive timely notification from the Novo team regarding the documents necessary for your type of business. 

What’s Next?

After you file everything, Novo bank checks your application and contacts you if you need to provide additional documents. Novo will notify you once your application is approved, so you can start funding the account. 

Log in through the online dashboard or download a mobile app for your phone to access funding. As mentioned, the Novo app is available for both iOS and Android phones and offers Novo’s full functionality.

Money Transfers

Novo offers several ways to fund your account, including ACH transfers, mailed checks, and wire transfers. The company’s mission is to provide effective mobile and online banking so you can quickly make and receive payments, and deposit checks.

Even though there are no business loans or credit cards, you can apply for a business debit card. Novo can connect with an external bank account, PayPal, and Venmo via your mobile app.

Unfortunately, Novo doesn’t allow clients to deposit cash. Cash deposits are typically tricky for online-only banks, so this is to be expected. Novo doesn’t accept e-checks, either. Instead, you can use ACH transfers and receive money directly to your account.

Who Is Not Eligible for Novo?

If you want to apply for a business account, first check if your business is eligible. Novo accepts applications from various industries, but the platform will not do business with the following sectors:

• Companies that work with cryptocurrencies
• CBD-related businesses
• Crowdfunding platforms
• Adult entertainment
• Privately-owned ATMs 
• Gambling
• Money services 

Novo Fees

Unlike many similar accounts, the Novo account doesn’t require any monthly maintenance fees or minimum account balances. 

You will not pay for incoming and outgoing ACH transfers, incoming wire transfers, and there are no bank fees for stop payments. If you need to replace your debit card, Novo won’t charge you anything.

Interestingly, Novo doesn’t ensure a network of fee-free ATMs that you can use to withdraw money. However, you don’t need to worry about ATM fees. You can use any ATM in the US, and Novo refunds all ATM fees as a bulk refund to your account at the end of each month.

With Novo, you will also get free mobile check deposits, and they will mail checks for free. There are no fees on a physical check bill payment either. Keep in mind, though, that this business bank account charges fees on uncollected fund returns and insufficient funds. The cost for these services is $27.

Unlike many other accounts for small businesses, Novo doesn’t require a minimum deposit to open an account, but you will have to deposit at least $50 to unlock all the features Novo has to offer.

Novo Features

The main standout features are:

Debit Card

Novo offers a free debit card that you can ask for during the application process. After you are approved for an account, the bank will send a Mastercard debit card to your home address.

Novo automatically provides only one debit card per account. However, if you need more cards for multiple users, you can request them. It is possible to add multiple users to your account through the Novo mobile app. With a Novo bank card, all of your partners will have access to the business account, allowing them to withdraw and transfer funds.

Online and Mobile Banking

The company’s headquarters are in New York, but there are no customer-facing locations. The team focuses on providing online business banking services.

You can make payments or send invoices through the online dashboard or mobile app. You can also connect your Novo card with Apple Pay or Google Pay.

Novo Reserves Budgeting Tool

Novo Reserves enables clients to manage funds and allocate the money they want to use for various purposes. 

For instance, you can set aside money for paying bills or just save it for the future. The funds still stay in your business account, and you’ll be able to access them at any time.

Invoicing

Another great feature that Novo clients get is invoicing. With a Novo account, you can create as many invoices as you want and receive payments. The Novo invoice system can be set up and managed through the mobile app, and the initial process only takes a few minutes.

You can use ACH transfers or connect your Novo account with Stripe to process invoices.

Novo App Marketplace

Many business owners will be happy to hear that Novo enables direct integration with an array of business tools through their App Marketplace. 

For example, you can link Novo with QuickBooks. All transactions made by your company will be automatically synchronized with QuickBooks, freeing you from everyday bookkeeping tasks. On top of that, you’ll get a 40% discount on any QuickBooks package for the first six months.

If you want to use Novo for payments, the Stripe integration is also available, as the company is a Stripe Verified partner. Other business apps, like Slack, Shopify, and Zapier, can connect with your account and simplify your everyday business tasks. Additionally, you can connect Novo with PayPal, Wise, and Square, but there’s no direct integration with these apps at the moment.

Novo Perks

Novo boasts partnerships with dozens of companies, so you can expect discounts on software programs and services like Booking, HubSpot, Zendesk, Segment, and Salesforce.

These are just some of Novo’s partners, and the list is growing. 

Novo Customer Support and Security

Novo is a relatively new banking platform, but it has already taken every measure to secure its clients’ accounts. As mentioned, Novo is backed by Middlesex Federal Savings, an FDIC-member bank. Thanks to that, Novo offers up to $250,000 in insurance per depositor.

As a fintech company, Novo employs the latest security measures to ensure client privacy. The company also guarantees that all private information is kept safe from third-party apps.

To protect your account, the company will let you use two-factor authentication. Furthermore, the Novo team will always monitor your account activity to protect it from unauthorized usage.

Should you have any questions regarding your account, you can always contact Novo support. The fastest way to reach an agent is through the mobile app. You can also send an email, and the support team will get in touch with you in the shortest possible time.

The Novo phone number is printed on your debit card, but that’s available only for existing Novo clients.

Room for Improvement

With Novo accounts, you can make payments via ACH transfers or mailed checks. In addition, you can set up your recipients’ information through the online dashboard to make every next payment faster. Unfortunately, there’s no option to set up automated payments, meaning that you’ll need to keep an eye on due dates and pay bills manually.

Our review wouldn’t be fair if we didn’t compare other business bank accounts with Novo. Unlike other providers, Novo doesn’t allow cash deposits. It means that you cannot deposit cash in your Novo account through an ATM. Instead, you’ll need to purchase a money order and deposit a check through the mobile check option.