Is Novo a Trusted Bank?

Novo

Novo is a fintech company; not a bank. Deposit account services provided by Middlesex Federal Savings, F.A., Member FDIC. Physical debit cards issued by Middlesex Federal Savings or Patriot Bank, N.A., Member FDIC; virtual cards issued by Patriot Bank, pursuant to licenses from Mastercard® International Incorporated.

is a financial technology company that offers business checking services for small business owners, freelancers, and entrepreneurs. With account features like seamless integration with various business tools and a fee-free structure, Novo has a mission of simplifying the banking process for modern businesses.

Novo Business Checking is gaining traction in the small business community as a reliable option for freelancers and small business owners looking for an easy-to-use and low-cost banking solution. Unlike traditional bank structures, Novo’s simple, online-first approach removes much of the complexity and high costs associated with standard business banking procedures. With a streamlined mobile app that integrates accounting, payments, and expense management tools, Novo is designed for business owners that value automation and efficiency for their business.

Let’s continue to explore Novo’s standout features, pricing structure, and how it compares to other business banking services.

Novo Reviews: What Users Think of Novo

4.75/5

Novo’s customers often rave about its clean, intuitive interface and the ability to integrate with a wide variety of business tools. Freelancers and small business owners particularly appreciate Novo’s no-fee structure, which eliminates the worry of unexpected banking charges. The ability to manage invoices, track expenses, and link accounts to apps like Shopify, Stripe, and QuickBooks make Novo a top choice for entrepreneurs who want to streamline their finances.

Some user reviews mention that the lack of cash deposits and limited customer support options can be downsides, but for businesses that operate mostly online and don’t rely on in-person banking, Novo performs exceptionally well.

TrustPilot: 4.7 out of 5 stars
Forbes: 4.6 out of 5 stars
Nerdwallet: 4.5 out of 5 stars

Many users praise the fast account setup process, noting that it only takes a few minutes to open a Novo account online. One business owner shared that Novo’s invoicing system saved them hours of manual work each week, while another highlighted the fee-free ACH transfers as a huge benefit for managing their cash flow.

However, some customers pointed out that Novo does not offer interest-earning accounts, which might be a downside for businesses looking to grow their savings over time. While Novo excels at providing the basics, it might not be ideal for companies seeking more advanced financial services, such as lines of credit or loans.

Novo’s Pricing Structure

4.9/5

One of Novo’s greatest advantages is its cost — or lack thereof. Novo offers a completely free business checking account with no monthly fees, no minimum balance requirement, and no hidden charges. This makes it an attractive option for small business owners who want to avoid the often prohibitive costs of traditional banking.

Free Plan:

• No monthly maintenance fees.
• No minimum balance required.
• Free ACH transfers.
• Unlimited invoicing and bill pay.
• Free incoming wires and mailed checks.
• Free integration with third-party tools like Xero, Shopify, Stripe, and Slack.

There are no upgrade tiers with Novo; all users receive the same free services regardless of the size of their business. While Novo doesn’t charge fees for many basic banking services, it should be noted that businesses cannot deposit cash through Novo’s platform. This might be a limiting factor for those who handle large amounts of physical currency.

Novo’s Key Features

4.8/5

Novo’s standout feature is its comprehensive suite of integrations that allow users to connect their accounts to popular business tools, making it a highly efficient platform for managing finances. Here’s a closer look at the key features that set Novo apart:

Seamless Integrations
Novo integrates with over a dozen third-party business apps, including Stripe, Shopify, QuickBooks, and Zapier, allowing users to sync their financial data across various platforms. This integration-friendly approach makes Novo a powerful tool for entrepreneurs who want to automate their finances and streamline operations.

Invoicing and Payments
Novo offers unlimited invoicing at no extra cost. Users can generate professional invoices directly from the app and accept payments through various channels, including ACH transfers and credit card processors like Stripe. This feature is especially useful for freelancers and service-based businesses looking to track payments in one place.

No Monthly Fees or Minimum Balance Requirements
One of the biggest draws of Novo is its truly fee-free structure. There are no monthly maintenance fees, no minimum balance requirements, and no charges for basic services like ACH transfers, bill pay, or incoming wires. For small businesses on a budget, this is a huge win.

Free ATM Access
Novo refunds all ATM fees, meaning users can withdraw cash from any ATM without worrying about additional charges.

Mobile-First Platform
Novo’s mobile app is highly rated for its user-friendly interface and the ability to manage finances on the go. From categorizing expenses to sending invoices, everything can be done through the app, making it a convenient option for business owners who are always on the move.

Would Our Expert Use Novo?

5.00/5

We highly recommend Novo for small businesses, freelancers, and entrepreneurs who want a low-cost, tech-friendly banking solution. Novo’s intuitive interface, no-fee structure, and wide range of integrations make it a perfect fit for business owners who value efficiency and automation.

Our favorite feature is the seamless integration with business tools like Shopify and QuickBooks, allowing users to manage everything from accounting to inventory in one place. The unlimited invoicing and fee-free ACH transfers are also standout benefits, especially for service-based businesses and freelancers.

That said, Novo may not be ideal for larger businesses that require more robust banking services, such as lines of credit, cash deposits, or interest-bearing accounts. If you’re managing a business with more complex financial needs, a provider like Bluevine or Mercury might be a better fit.

Novo Pros

• No fees: Truly fee-free banking with no hidden charges or minimum balance requirements.
• Integrations: Connect your account with a variety of popular business tools like Stripe, QuickBooks, and Shopify.
• Unlimited invoicing: Generate and track invoices directly from the app, making it easy to manage cash flow.
• Mobile-first experience: Manage all aspects of your business finances from Novo’s user-friendly mobile app.

Novo Cons

• No cash deposits: Novo doesn’t support cash deposits, which could be a drawback for businesses that deal with physical currency.
• Limited customer support: While Novo offers email and in-app chat support, some users have reported slow response times.
• No interest-bearing accounts: Unlike competitors such as Bluevine, Novo doesn’t offer accounts that earn interest on your balance.

Alternatives to Novo Business Checking

If Novo Business Checking isn’t the perfect fit for your business, here are some alternatives to consider:

Bluevine Business Checking

• Starting price: Free.
• Key features: Earn 2% interest on balances up to $100,000, access to business loans.
• Best for: Businesses looking to earn interest and access lending services.

Found Business Banking

• Starting price: Free.
• Key features: Built-in tax automation, expense tracking.
• Best for: Freelancers who need simplified tax and expense management.

Lili Business Checking

• Starting price: Free.
• Key features: Fee-free overdrafts up to $200, real-time expense tracking.
• Best for: Entrepreneurs who want overdraft protection and easy-to-use expense tools.

Alternatives to Novo

If Novo Business Checking doesn’t fit all your needs, here are some alternatives to consider:

Methodology

To create this review, we analyzed Novo’s banking features and compared it to similar platforms while we evaluated user reviews from various sources. We took into account the unique needs of freelancers and small business owners to determine how well Novo meets those requirements in comparison to its competitors.

Conclusion

Novo Business Checking is an excellent choice for small business owners, freelancers, and entrepreneurs looking for a no-fee, mobile-first banking solution. While it may lack some advanced features like cash deposits and interest-bearing accounts, Novo excels in providing a streamlined, cost-effective banking experience for businesses that operate online.

Frequently asked questions

Is Novo a good business checking account?

Yes, Novo is an excellent option for small businesses and freelancers, offering fee-free banking, no minimum balance requirements, and strong integrations with business tools. However, Novo lacks certain in-person features like cash deposits and check-writing.

Is Novo a trusted bank?

Yes, Novo is trusted, partnering with FDIC-insured Middlesex Federal Savings to protect deposits, and it has a solid online reputation amongst business communities for its user-friendly app and transparent fee structure.

What is the best bank for a small business?

Novo is a top choice for small businesses looking for a digital-first, no-fee option, but other banks like Bluevine (offering interest on deposits) and Mercury (highly suited for startups) may be better for specific needs.

Does Novo run your credit?

No, Novo does not run a credit check when opening a business checking account, making it easy to apply without impacting your credit score.

This article was reviewed by our banking expert Tricia Jones.