Affiliate & Editorial Disclosure

Novo Bank | Reviews by SmallBizGenius

ByVladana Donevski
July 01,2022
We form affiliate partnerships with some of the companies mentioned in our reviews, which means we may get a small monetary compensation every time you purchase a product using the links on our website. This does not influence the contents of our reviews. Learn more by reading our Affiliate disclosure.

Novo is a fintech company that provides unique banking services through its partnership with Middlesex Federal Savings, F.A. It offers customers an exceptional checking account designed for the digital age and several innovative features to help small businesses manage their finances.

Many Novo bank reviews online praise it as the perfect choice for small businesses, but is there truth to this claim? If you’re considering the company’s checking account for your business, read on, as we’ve done the legwork and compiled a run-through of its offer.

Score:
A-

Entirely free checking account See review for more details

pros thumb up Pros
  • Quick application and approval times
  • Excellent banking tools
  • Novo app and workflows
  • Human-powered customer support
  • Superb integrations
cons thumb down Cons
  • Only checking account available
  • No physical branches

What Novo Bank Has To Offer

At the time of this Novo business banking review, the fintech company offered business checking accounts only. If you need a credit card for your business or other finance services, Novo will allow you to connect your other accounts and manage them seamlessly.

Business Checking Features

Novo’s checking accounts come with exceptional features and benefits, making them an excellent choice for most small businesses. Let’s discuss those in detail.

Application and Approval Process

The Novo bank business checking account is probably one of the easiest to open. Since Novo doesn’t have a brick-and-mortar branch, you can only open an account online. Fortunately, it takes just a few minutes to apply.

Once approved, you’ll immediately gain access to the account and funds with the virtual card—no more having to wait for the physical card to arrive in your mailbox. You can also connect it to Apple and Google Pay to make necessary payments in the meantime. 

Fees and Prices

Users can rely on completely free transactions, as the Novo checking account comes with absolutely no fees.

Not only are your ACH transfers, mailed checks, and incoming wires entirely free, but you can also say goodbye to monthly fees, minimum monthly balances, and ATM withdrawal fees! If you already have an account with another bank, you can easily connect it through the Novo platform’s dashboard and transfer money between them for free.

Novo App

The app dashboard is beautifully designed with an effortless banking experience in mind. Everything from paying and saving to getting paid for your products and services is easily accessible.

Receiving Payments

The Novo banking app allows you to create and send out invoices in a matter of seconds and get paid instantly. You can also integrate your Novo app with PayPal, Stripe, and Square, which makes charging for your products or services manageable from a single app.

Making Deposits

If you receive some of your payments in cash, you can rely on check deposits to fund your account. The process is straightforward—all you need to do is take a photo of your check and forward it to Novo to deposit it.

Make Payments

You can also use Novo’s online banking to pay for your expenses. Payments sent through Novo are accepted both in the US and internationally, and you can rely on free ACHs and paper checks for US payments, as well as Wise for international payments.

Novo Reserves

Managing your payments and budget as a small-business owner can be tedious, and this is another aspect of banking Novo can help you with.

Its Reserves feature allows you to budget your company’s finances easily and effectively. You can create up to five reserves and set aside funds for taxes, payroll, inventory, and other significant expenses. Novo now allows you to set a specific percentage of all future deposits to be automatically assigned to a given reserve.

Novo Apps

The described features may have already convinced you to opt for a Novo checking account over other superb banking options for small businesses; if not, here’s something to sweeten the deal: The company also offers integration with almost all the other tools you already rely on and use.

Novo currently offers thousands of integrations with other apps and is likely to add even more. These connection options are available to all Novo users, but the company doesn’t take responsibility for any partner charges.

These integrations can help streamline your finances into a single dashboard so you can manage your company’s money flow without jumping between multiple apps.

Apart from the payment providers we’ve already mentioned, the Novo banking app allows easy integration with QuickBooks, Xero, Etsy, Amazon, WooCommerce, and eBay.   

Novo App Perks

The Novo app also offers exclusive perks for shopping online using its checking account, with possible savings of over $5,000.

For example, some of the perks are 6% cash back from Booking.com when you pay for your trip using the Novo debit card, a 100% discount for the first three months of using Gusto, or $300 in Google Cloud credits.

Customer Support

Novo’s customer service can be reached by phone (number available on the back of your Novo debit card), through the Novo App, or via email. Its website also hosts numerous educational resources and an extensive FAQ section.

Unfortunately, Novo doesn’t offer customer support by phone for people without an account with the banking provider. If you want to sign up for its services but have questions before you do so, you can send them an email. The working hours of Novo's representatives are Monday to Friday, from 9 a.m. to 6 p.m. EST.

Where Novo Falls Short

Even though its checking account is top-shelf in the world of small-business checking accounts, Novo is far from a comprehensive, all-in-one solution for all your financing.

One thing to mention is that you won’t earn any interest on cash balances, so you might not want to put a lot of money into this checking account. You also cannot set up automatic payments, so you’ll have to keep track of your due dates manually.

The main “con” of going with Novo is that you cannot make cash deposits into your account via ATM. Hopefully, it is something Novo will improve on in the future.

Conclusion

The Novo business checking account is an excellent choice for small businesses that have to be mindful of the fees associated with managing their payments and funds received for their products and services.

It is also a perfect solution for eCommerce businesses that accept payments through Stripe, Square, or PayPal, as Novo’s platform allows seamless integrations with these payment providers. Plus, with Novo, small-business owners can manage all their banking online through their browser or mobile app and use the time saved to grow their business.

Lastly, Novo has excellent customer support. You can reach a representative in a matter of minutes through the Novo banking app. Unlike some other neobanks, which are hard to reach in an emergency, Novo doesn’t leave you on hold.

If you are a small-business owner with long daily task lists, a brand-new entrepreneur learning the ropes, or even an established business looking for a simplistic and effective banking solution, Novo is the right choice.

FAQ
Who is Novo bank owned by?

Novo offers small-business banking services in partnership with Middlesex Federal Savings, F.A., a federal savings bank, but it is not a bank itself. It is an independent company.

Does Novo run a credit check?

The Novo bank does not run a credit check on new customers opening a checking account, making it easy for anyone to get started with it and take advantage of its excellent checking account.

Is Novo a reputable bank?

Novo is a reputable financial technology company offering a great deal on its checking account. According to many Novo bank reviews, ours included, it is an excellent choice for businesses looking for a new neobank to trust with their banking needs.