Digital banking has become more prevalent in financial services as people look to mobile banking apps and other digital tools to manage their everyday banking tasks. Small business banking is also seeing a rise in innovative digital tools, services, and features.
Account details and annual percentage yields (APYs) are accurate as of March 22, 2022.
Features of Novo
The main draw of Novo is its integrations. They have made their niche with integrations into major small business tools like Shopify and QuickBooks. A real example of how this helps is running your transitions in QuickBooks in real-time, and viewing that in your NOVO business checking account.
In addition to business checking tools and features, Novo offers Novo Reserves, a way to set aside money for specific purposes, such as taxes, payroll, or other expenses. As part of your Novo account, you can create up to five Reserves for multiple budgets and goals.
Like other business checking accounts, you can get discounts and cash savings.
Account Basics
Novo isn’t a bank. It’s an independent tech company that has a partnership with Middlesex Federal Savings, F.A., to provide online financial services. In a nutshell, you get the benefits and security of traditional banking, with the tools and technology that are required in 2022.
They also offer traditional checking accounts that are competitive with some others on the market now like Chase, Capital One, Fifth Third, etc. You will want to compare fees if you are in need of a checking account.
There’s no monthly maintenance fee, and there are relatively few other fees. Novo doesn’t charge for incoming or outgoing ACH transfers, domestic or foreign wire transfers, stop payments, debit card replacement, physical checks, bill payments, checks, or paper statements.
Novo refunds all ATM fees, including those incurred at international ATMs. You also get a NOVO-specific debit card and access to the NOVO app. You can apply for Novo’s business checking account online—the fintech company says it only takes 10 minutes to apply.
Mobile Capable
Novo has a wonderful mobile app based on its reviews. Its mobile app provides several desirable mobile features for businesses, including:
- Remote check deposit. Deposit checks by scanning them with your phone camera.
- Mobile wallets. Novo’s debit card can be used with Apple Pay and Google Pay.
- ATM access. All ATM fees are refunded.
- Invoicing. Create, send and track invoices.
- Payment. Get payouts from platforms like Square, Stripe, and Shopify.
- Reserve money. Use Novo Reserves to set money aside.
The Novo mobile app is highly rated, earning 4.8 out of 5 stars on the App Store and 4.8 stars on Google Play.
Pros
- No monthly fee and few other fees
- Integrates with popular tools like Stripe, QuickBooks, Shopify
- The mobile app is very well rated
- Refunds all ATM fees
Cons
- No interest earnings
- Must purchase a money order to deposit cash
- $27 fee for insufficient funds and uncollected funds returned
- Novo doesn’t currently offer savings accounts or other interest-bearing accounts
- Novo doesn’t offer loans or lines of credit
How Novo Stacks Up
Novo deserves credit for its strong focus on delivering a business checking account that largely lacks fees. Unlike some major competitors, Novo doesn’t charge a monthly service fee. It also refunds all ATM fees and doesn’t charge for wire transfers. Plus, there’s no minimum account balance required. It only charges fees in the event of insufficient funds or uncollected funds returned.
Small business owners already accustomed to using payment apps, small business software and accounting tools may find that Novo integrates with the tools they’re already using. Because it integrates with so many tools, Novo can serve as a home base for your business finances, offering convenience and visibility.
Novo could be a good option if you’re a small business owner who is already used to doing most of your banking online, since its business checking account is designed for online transactions.
But depositing cash with Novo can be cumbersome. To deposit cash, you must first purchase a money order from USPS, Walmart, a grocery store or another approved vendor. Then you can use the mobile check deposit feature in the mobile app to deposit the money order.
Novo also doesn’t offer interest earnings. And it doesn’t have any other business products, limiting what you can do with the company. If you’re looking for a banking solution that offers loans and other business services, Novo may not be for you.
