Novo Bank Review

Millennial Money has partnered with CardRatings and creditcards.com for our coverage of credit card products. Millennial Money, CardRatings and creditcards.com may receive a commission from card issuers. This site does not include all financial companies or financial offers.

Novo Bank is a relatively new, online-only bank geared towards small businesses, entrepreneurs, and freelancers alike.

While the bank is somewhat limited in the services it offers, if you’re starting a business or you’re running a small business, it is worth checking out.

This is because the bank is geared towards small business owners with little to no fees, several technology integrations, and many perks to help you get your business off the ground and keep it running.

If you’re looking to open a Novo account to take care of your business banking, continue reading.

This Novo review has been prepared just for you.

About Novo Bank

Novo Bank is a limited-service bank. This means that it doesn’t offer all of the services a big bank usually provides.

Instead, it focuses on the needs of small business owners, entrepreneurs, and freelancers.

Having said that, it is important to note that not everyone has the same financial and banking needs.

This is why it’s important to understand what the bank actually offers its customers before going ahead and opening an account with them.

Novo Bank offers only one type of account – a checking account.  The bank also offers integration with several services.

As most business owners depend on a variety of online tools to conduct their business, the ability to integrate with such a wide variety of services can help them ensure that their processes run smoother.

Currently, Novo can connect with the following apps and services:

  • Slack
  • Stripe
  • Intuit Quickbooks
  • Zapier
  • TransferWise
  • Xero

The bank promises that more services and apps will be added soon. If there is a specific app or service your business depends heavily upon, then this is a space definitely worth watching.

As a completely online bank, Novo Bank also has mobile apps. There are two versions available.

One is for Android, and this can be downloaded from the Google Play Store. The other is for iOS devices, which can be downloaded from Apple’s App Store.

You can also use the bank’s website. This is accessible from any computer that has a web browser and, of course, an internet connection.

As for all intents and purposes, Novo is an online bank. The app has many features that allow you to do all of your banking online, like:

  • Receiving transaction notifications
  • Ability to link your Novo MasterCard to Apple Pay or Google Pay
  • Making and receiving payments

Novo Bank Business Checking

Best for businesses that don't handle cash
    • Monthly fee: $0 ($27 insufficient funds fee)
    • Minimum opening deposit: $50
    • Highlights: Free incoming wire transfers, free ACH transfers, free Visa debit card
    • Mobile banking: Novo is a mobile-first bank

Novo Bank Business Checking Logo

Novo Bank Business Checking Account

As mentioned earlier, Novo Bank only offers one type of bank account – a business checking account that comes with a few out of the box features designed to help business owners get on top of their finances.

In fact, it is one of the best business checking accounts on the market right now, especially if you’re into a mobile-first experience.

You can use your Novo business checking account to make payments, process transfers via ACH (Automated Clearing House), deposit checks, transfer from other bank accounts, as well as receive wire transfers. These can be both domestic as well as international.

One of the downsides of online-only banks is that you cannot deposit cash. Instead, you’ll have to get a money order and then deposit that as a check through the mobile app.

While the bank does not make use of physical paper checks, should you want to issue one, you can still ask them to issue one for you.

The account also comes with a Mastercard debit card. The card can be used at any ATM, and Novo Bank will refund all fees you might get charged. This is a handy perk since the bank does not have its own ATM network.

As Novo Bank is an online-only bank, the account can be managed entirely online. You can download transactions in CSV format to process it in spreadsheet software such as Excel or import directly into your accounting software, including Quickbooks and Xero.

If you’re looking for a full-service bank, then Novo Bank might not be for you since they do not offer the full range of banking services and products.

Having said that, if you’re looking for a business checking account to easily and efficiently manage your small business or freelance practice, then Novo Bank could very well be the bank you’re looking for.

Security

When it comes to banks, security is an important topic to consider. Your money’s safety is of the utmost importance, and the bank does not disappoint here.

The account is FDIC insured up to $250,000, and they are partnered with Middlesex Federal Savings, who ultimately hold the accounts.

Bank Novo also promises to take information security very seriously. They use the banking industry’s standard encryption, so everything stays safe and secure.

It is also highly recommended to make use of a secure password when setting up your account to avoid unauthorized access.

Should this happen, the customer support team is on standby to protect your account, so all you’ll need to do is contact them.

Getting Started with Novo Bank

Opening an account with Novo Bank is easy, with the whole process taking just a few minutes. To get started, simply visit the bank’s website and click on the blue and purple GET STARTED button to start the process.

You can easily find this button at the top-right corner of the web page. The process kicks off by entering your email and a password.

Once this is done, a confirmation email with a code will be sent to you. You will need the code to confirm your email address and proceed with the online application.

You will need to provide a few personal information details along the way. Do keep in mind that there’s a $50 opening balance minimum.

When it comes to transferring funds, you cannot use a debit card directly, but you can use e-wallet options such as PayPal.

Novo Bank Business Checking

Best for businesses that don't handle cash
    • Monthly fee: $0 ($27 insufficient funds fee)
    • Minimum opening deposit: $50
    • Highlights: Free incoming wire transfers, free ACH transfers, free Visa debit card
    • Mobile banking: Novo is a mobile-first bank

Novo Bank Business Checking Logo

Novo Bank Perks

As a customer of the bank, you get access to Novo Perks. These are a number of cash-saving opportunities on a wide variety of services and business tools that most business owners would find very useful.

Available Novo Perks:

  • Google Get $150 in credits to spend on Google’s advertising platform
  • Google Get $3,000 in credits to be spent on Google Cloud
  • Stripe. Savings of up to $5000
  • Get 6% cashback when booking trips using your Novo Debit Card
  • Get a 100% discount when subscribing to any Gusto package for up to $500 in savings
  • Intuit Quickbooks. Get 40% off for the first 6 months when subscribing to any online package
  • Get 30% off the first year and then continue to enjoy 15% off when you renew
  • Get $50,000 in credit over 2 years
  • Get 6 months free on any suite.
  • Get an automatic 30% discount when making new purchases
  • 50% discount off Salesforce Essential yearly plan
  • Get 1 month for free when subscribing to Homebase Plus.

Fees

One of the advantages that this bank offers, which business owners will surely appreciate, is their fee structure.

The checking account has no monthly maintenance fee and, therefore, no requirements to reach in order to waive off the fee.

Furthermore, there are no minimum balance requirements. This can be a great feature for new businesses that are just starting out since cash flow can be a bit of a problem.

The bank does not have charges on many of the banking activities that a typical customer might need to carry out.

This means that you will be able to put more money into your business without worrying about charges to eat away from your capital.

The bank charges $27 for NSF (insufficient funds) and $27 for uncollected funds returned.

NSF funds can be triggered for going overdraft, but these charges can easily be avoided by planning ahead and double-checking before issuing any payments.

There Are NO Fees For the Following

  • ACH transfers
  • Incoming wires
  • Depositing od checks
  • Volume of transactions
  • Stopping payments
  • Replacing your debit cars
  • Physical checks (mailing and processing)
  • Paper statements

Customer Support

When it comes to supporting its customers, the bank offers a few different options.

There is a very strong knowledge base that answers more than a few questions.

It is one of the best around with a search function and categorized questions to help you find the answers you’re looking for that much faster.

The bank also offers support via telephone, email, or directly through the app.

Support hours are restricted to Monday through to Friday from 9 AM until 6 PM EST.

While the email address is available on their website, you will have to refer to your Novo debit card for the telephone number.

If contacting support through the app, simply locate the Support tab on the app and follow the instructions provided there.

Restrictions When Opening a Bank Account With Novo

Novo Bank is a great option for many small business owners who need to manage their business’ finances.

Having said that, there are a few restrictions that you need to be aware of in order to be able to open a business account with this bank.

One set of restrictions has to do with the type of business you are running.

Novo Bank does not accept ALL kinds of business, though.

Novo Does Not Accept Business in the Following Fields:

  • CryptoCurrency and money services
  • Privately owned ATMs
  • Marijuana-related
  • Gambling
  • Money services

While this might change in the future, at the moment, accounts cannot be opened for businesses in the above fields.

Applicants must also reside in the US, and the business must also be based in the US.

Pros and Cons

Like everything else, Novo Bank is not perfect and has its own set of pros and cons.

Understanding what these are can help you make the right decision for you and your business.

Of course, not all pros are going to be of advantage for everyone. Equally, not all cons are going to be a deal-breaker for everyone.

The important thing here is to understand what your needs are and then checking if this bank fulfills them.

Pros

  • Few fees. There are no hidden fees or monthly fees, and most activities are free of charge
  • Strong online banking. As Novo is an online bank, it’s great for those who really prefer doing it all online
  • Highly-rated Novo app. Available on Android or iPhone
  • Mobile check deposit. Checks can be deposited through the mobile app
  • ATM fees are reimbursed. The bank will reimburse all ATM fees

Cons

  • No interest on the account. While your account is FDIC insured, it does not earn any interest
  • No ATMs or branches. Novo Bank does not have any branches or ATMs of its own
  • No other products. Aside from the business checking account, the bank does not offer any other financial products or services such as business credit card at this time

Is Novo Bank For You?

Novo is an excellent choice for small businesses, freelancers, and entrepreneurs.

If you’re looking for a free business checking account or a new business debit card to track your business spending, then what Novo bank is offering should be getting your attention.

With a banking experience that’s 100% online, it can prove to be very convenient for new business owners who have to juggle multiple things at once. This allows you to focus on your business more.

The account also has no monthly fees and is virtually fee-free. The fees that are there can be avoided, and even so, they are lower than what the competition charges for the same activities.

The account is also FDIC-insured, and both apps and the website are safe. This can help you put your mind at ease that both your money as well as your information are safe.

The account can easily be set up online, with the whole process taking less than 10 minutes from start to finish. You will need a compatible smartphone to install their app and enjoy the many advantages it offers.

Novo Bank

Overall Rating

9

Bottom Line

If you’re looking for a business checking account to easily and efficiently manage your small business or freelance practice, then Novo Bank could very well be the bank you’re looking for.

Pros

  • No monthly maintenance fees
  • Great mobile app
  • Mobile check deposit

Cons

  • No physical branches
  • Only one account option

Monthly Fees

10.0

User Friendliness

10.0

Account Options

8.0

Overdraft Fees

8.0

Additional Disclosures: Millennial Money has partnered with CardRatings and creditcards.com for our coverage of credit card products. Millennial Money, CardRatings and creditcards.com may receive a commission from card issuers. This site does not include all financial companies or financial offers. Opinions, reviews, analyses & recommendations are the author’s alone, and have not been reviewed, endorsed or approved by any of these entities.

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