Novo Business Checking Accounts Review

Account Features

Novo offers a single, fee-free online business checking account aimed at small businesses. All account holders receive an EMV-chipped debit card for maximum security and easy access to your business's funds. It aims to keep business banking simple and affordable for the average small- to mid-size business owner. It succeeds in providing a transparent fee schedule and an intuitive online account management platform. Unlike the business bank accounts offered by many large brick-and-mortar banks, you don't have to wade through a lot of fine print to understand what you're getting. 

Novo business checking customers can send, track, and otherwise manage invoices directly from their accounts. They can also accept invoice payments from their customers via credit or debit card. No more waiting for the check that's "in the mail." And the company offers recurring payments for Novo Invoicing.

Novo accounts stand out for helping businesses get paid—a foremost goal that's sometimes fraught with challenges. New for 2022 is a feature called Novo Boost. With Novo Boost, customers can access payments made through Stripe 95% faster than before with no fees assessed. Through Novo Boost, Novo helps businesses improve their cash flow position so they can pay their vendors, themselves, and their employees on time, without risking late payment fees. Many small business owners are forced to dip into their personal funds when cash flow issues come up. Novo Boost helps business owners avoid that headache.

Novo also helps business account holders manage their finances by incorporating a feature called "Novo Reserves." The feature acts like an account-in-an-account and allows users to segregate funds in separate virtual folders. Novo Reserves can be used to separate operating dollars from funds set aside to pay taxes, for example. The feature affords customers improved visibility into their finances and greater convenience by putting more data at their fingertips in one centralized place.

Fees and Restrictions

Novo offers one of the most affordable business checking accounts out there. Like most digital banks, not having brick-and-mortar locations reduces overhead costs, and Novo is able to pass those savings on to you by slashing fees. There are no monthly service fees or minimum balance, though you need at least $50 to open a Novo business checking account. It also doesn't charge customers for incoming or outgoing ACH transfers, or domestic or foreign wire transfers, which isn't something most banks can say. The only fee you could ncur is a $27 uncollected funds returned fee.

Novo offers up to $7 ATM fee refunds per month when you withdraw cash from ATMs anywhere in the country. You're limited to a maximum of $1,000 in ATM withdrawals per day, which is pretty typical for the industry.

Account Management and Support

Novo is a digital bank with strong online account management features. From your online account, you can view your balance and transaction history, easily transfer funds to other linked bank accounts, deposit checks remotely, and receive alerts about suspicious activity on your business debit card. The company offers an iPhone app currently, and an Android app is in the works so you can manage your account from any device.

You can integrate your Novo business checking account with several popular business applications, including Stripe, Quickbooks, Amazon and Xero. The company is also working on adding new integrations so you can link your business checking account with any business tools you use. You can also use your Novo debit card with Google or Apple Pay if you don't want to pull out your card every time you need to make a purchase. Few other business checking accounts offer integrations like these, so move Novo up on your list if you're interested in these.

While managing your Novo business checking account is pretty straightforward, you can contact the company by email 24/7 with questions or concerns.

Reputation and Financials

Novo Bank has only been around since 2016, so it's not as widely known as other business checking account providers yet. It doesn't have any Better Business Bureau (BBB) or TrustPilot reviews, but this will likely change as the company continues to expand its offerings. With its simple account management, integrations and minimal fees, it won't be long before its star begins to rise.

Its partner bank, Middlesex Financial Savings, is FDIC-insured, which means that the money you place in your business checking account is protected up to $250,000. In the unlikely event of bank failure, you won't lose any of your funds. But this shouldn't concern most people as this bank has been around since 1890 and continues to look strong.