One of this things that are first should do after formally incorporating your business is open a business bank account. But the prospect can be overwhelming because there’s so choice that is much very little transparency from inside the space. I evaluated more than a dozen financial services providers for freelancers and very small businesses before settling on a solution — which, to this day, I’m still not sure was the right call.NovoI wish Novo had been around back then when I ran my own micro-business back in the day. member FDIC offers a business that is free account through Middlesex Federal Savings F.A.,
, also it’s among the many few business financial services providers which in fact seems to worry about the entrepreneurs it serves. (Harsh, sure, but fair — go on it from a entrepreneur that is former)
Novo offers just one business bank account, but it’s a very one that is good. It offers plenty of features you’ll use and no actually recurring or hidden fees, ever. See how it compares to business that is traditional accounts and determine whether or not it’s a great fit for the enterprise.
What Is Novo?small-business bank accountNovo is a fintech which provides a* that is( through Middlesex Federal Savings F.A., member FDIC. It’s not itself a bank — that’s why it partners with Middlesex, an bank that is actualfree checking accountsBut Novo does offer certainly one of only a few of
for business users. Unlike business that is most financial services providers, it doesn’t charge a monthly maintenance fee or fees for everyday actions like ATM withdrawals. Novo also doesn’t impose limits on deposits, so it’s appropriate both for small businesses that plan to stay small and businesses that are small intend to grow quickly.
Novo serves about 175,000 businesses and counting. However, it is not a business that is full-service — yet — because it doesn’t offer any loans, credit cards, savings accounts, or treasury management services.
How Novo Stacks Up
Novo (through Middlesex Federal Savings F.A.) isn’t the business that is only account provider around. BankProv is yet another continuing business bank that focuses on smaller enterprises, though its features and services seem like a better fit for larger, more established enterprises.
BankProv Small Business
$0 to $50, depending on balance
Minimum Balance Requirements
Numeric Deposit Limits
ATM Fee Reimbursement
More than a dozen, including QuickBooks, Shopify, Stripe, Square, and Amazon
What Sets Novo Apart?
Novo is not your typical business fintech. It’s better. Which means there’s a lot to set it apart from more competitors that are ordinary
- Three Points of distinction really though stand out. See how each improves the money management experience with Novo.Unlimited Check Deposits and No U.S. Transaction Limits.
- Novo is rare among its peers for imposing no limits that are numeric check deposits or U.S. transactions. You don’t have to be worrying about sticking with a number that is certain of or debit card swipes each month, which is good if you make lots of sales or small purchases for your business.Unlimited ATM Reimbursements.
- Novo doesn’t charge ATM withdrawal fees. Even better, it doesn’t allow other banks and third-party ATM operators to either charge them. It, no questions asked.
No if you do get hit with an ATM withdrawal on your Novo debit card, Novo reimburses Monthly Fees or Hidden Fees.
Novo does charge that is n’t maintenance fees or annual fees. In addition does not have any fees that are hidden. You shouldn’t incur any out of pocket expenses — which is nearly unheard of in this industry.
Key if you use Novo as intended top features of Novo
Novo provides extensive features which make it popular with small, growing businesses. The theme that is common — which, in my experience, is unusual in a business-facing fintech — is a focus on affordability, ease of use, and empowerment. Many competitors seem more interested in finding ways to limit their users.
Free Mastercard Debit Card & Virtual Card
Novo comes with a Mastercard that is free debit accepted by scores of online and in-person merchants. That in as well as itself is not notable — business bank accounts that are most come with a free debit card.
What is notable is the fact that you get a Novo virtual card number as soon as your account is approved and your opening deposit hits. That means you have immediate access to your deposited funds and can immediately start business that is making. You don’t have to attend days for the card to reach from inside the mail, like the majority of business that is traditional require.
Plus, your Novo debit card integrates with Google Pay and Apple Pay. No need to swipe your card at the point of sale where these options are accepted or enter your card number every time you need to online use it.
Reserves are basically capital that is working that bring order (and speed) to your business budgeting processes.
You can create up to 10 Reserves: one for estimated taxes, another for insurance, another for equipment financing payments, and so on. Allocate a portion of future revenues and set specific expenses to be paid out from each, automating your overhead and freeing up your accounting team’s time for more work that is important.
- If your company has a few basic expense categories, Reserves can replace a conventional bookkeeping setup and may even eradicate the significance of a budget that is traditional. And it’s totally free, meaning it costs infinitely less than a paid accounting system.
- External App Integrations
- Novo integrates seamlessly with more than a dozen apps that are external. The lineup is definitely changing but currently includes many of the biggest names in digital sales, payment processing, and accounting:
The Stripe integration is specially helpful for companies that use Stripe in order to make and process payments. Novo is a Stripe Verified Partner, therefore the integration is entirely seamless through the user’s perspective — you will find your balances that are stripe in your Novo account and process payments up to 95% faster.
Plus, you get $20,000 in fee-free payment processing when you sign up for Stripe through Novo.
Currently in open mode that is beta Novo Boost offers you usage of your cash even faster than expected — in hours in place of days. That’s super useful as soon as organization is in growth mode and you’re today’s that is using to pay bills coming due tomorrow.
Boost is currently only available for payments processed through Stripe, but that could change in the future.
Mobile Check Deposit
Good news for businesses that prefer (or have no choice but) to do things the old-fashioned way: Novo allows unlimited mobile check deposits through the app that is mobile. Just sign and endorse the rear of the check (see below) and complete the deposit with only a taps that are few the app.
Novo allows inbound that is seamless outbound transfers without any minimums with no numeric transaction limits in the U.S. (This pertains to debit card transactions at the same time.) There are not any transfer fees for ACH transfers and paper check bill payments, and you also make international transfers that clear within minutes Wise that is using may apply).
Novo has a built-in invoice generator that can almost certainly eliminate the need for a standalone tool that is invoicing. Utilize it to create and send professional-looking, customized invoices to clients and customers. (with a few clicks on their end*)If you want — and it’s not clear why you wouldn’t — you can integrate PayPal, Stripe, and/or Square into your Novo invoices so that your clients can pay you.
- Third-Party Partnerships and Deals
- In addition to the parties that are third mentioned, Novo partners with many notable external vendors to supply exclusive perks and discounted services to its users. Make the most of these partnerships and you may unlock thousands of dollars in value:
- 50% discount on the first half a year with Constant Contact (email marketing and customer relationship management)
- 30% off your first subscription that is year’s HubSpot, then 10% subsequent years (digital marketing and analytics tools)
- Six months free on any Zendesk license, up to 100 seats (customer service tools)
- $500 in Google Ads credits when you spend $500
$300 in Google Cloud credits
30% discount on the first six months of any QuickBooks online subscription
There are more where these came from. My advice: Take advantage of any opportunities that even apply to your remotely business. If you’re not seeing the worthiness, you can cancel.
- Advantages of NovoIf it is not yet determined chances are, Novo provides extensive upsides. These are generally particularly valuable for growing businesses that are small
- Open an Account in About 10 Minutes. Novo has a super-simple, all-online account application process. An account can be opened by you in approximately 15 minutes here. Traditional banks may take weeks.
- Built-in Budgeting With Reserves. Novo’s Reserves feature is a budgeting that is basic expense management tool that could replace your external accounting software and maybe even your bookkeeper. Talk about savings.
- Lots of useful integrations that are third-Party*). Novo integrates with a number of super-useful third-party apps, including payment powerhouses like Stripe and Square. No longer money that is time-consuming or revenue management.Partnerships and discounts thousands that are worth*). Novo’s partnerships that are third-party worth thousands when fully exploited, and they’re actually useful.
- Invoice Clients and Collect Payment Right From the App. Novo’s invoicing that is built-in payment tools enable it to be an easy task to request and get money from clients on the terms. And its particular professional-looking invoices help your company stay ahead of your competition.
- Immediate Use of a Card that is virtual(). No need to wait for your Novo debit card to arrive in the mail to start spending out of your Novo account. You’ll get a debit that is virtual number the moment your bank account is approved.Unlimited Mobile Check Deposits
- . If you’re drowning in checks, Novo has you covered. There’s no limit into the true number of mobile check deposits you can make into your Novo account and no fees for executing them. No Numeric Limits on Deposits or U.S. Transactions
- . Novo also doesn’t impose limits that are numeric deposits or U.S. transactions. You are able to as much small or deposits that are not-so-small you’d like into your account, and swipe your debit card as much as needed with U.S. merchants.Virtually No Fees
- . Novo does charge that is n’t fees, transaction fees, statement fees, or just about any other hidden junk fees. Among the few business that is remaining accounts that’s truly free, and that puts it head and shoulders about its competitors.Disadvantages of Novo
Novo isn’t perfect. These are worth considering before applying for an account.
- No though it doesn’t have many downsides Interest-Bearing Savings Account. Novo’s sole product (for the present time) is a account that is checking. You don’t need this year, you won’t find it here — though Reserves is a nice intermediate option for monthly and even annual budgeting.No if you’re looking for an interest-bearing savings account for capital Small-Business Loans or Credit Linesbusiness credit cards. Novo doesn’t offer small business loans or
- . It may later on, however for now, you ought to look elsewhere for financing.No Account Opening Bonus from the brief momentbusiness bank account promotions. Novo doesn’t currently have any
. These bonus offers tend to come and go, so that could change in the future too.
Is Novo Legit?Yes, Novo is legitimate.
It offers business banking services through Middlesex Federal Savings F.A., an bank that is FDIC-insured a long history of stability and good customer support.
More than 175,000 businesses trust Novo with the hard-earned money. It offers a huge selection of five-star reviews on Trustpilot, a trusted and popular consumer protection resource. The Novo app is rated 4.8 out of 5 stars in the Apple App Store and 4.4 out of 5 stars on Google Play, both as of early 2022.
And october it is possible to be assured that your cash is secure with Novo. Along with Middlesex Federal Savings’ FDIC insurance, your funds are protected by bank-grade encryption, Novo’s security that is in-house, virtual credit cards that keep your actual debit card number from falling into the wrong hands, and EMV/chip card security.
Alternatives to Consider(you back, Novo is arguably your best bet*)If you’re looking for a small-business checking account that doesn’t hold. If you’re trying to find a account that is juicy bonus, business financing options, or interest on long-term savings, consider these alternatives instead.
Account opening bonuses
Live Oak Bank
Business savings accounts
Working capital loans
Capital One Bank
Small-business credit cards
for a number of reasons.
First as well as perhaps most significant, Novo is really free. This really is rare among small-business services that are financial, and getting rarer. Novo doesn’t charge recurring maintenance fees and has no hidden fees, without worrying about junk charges eating away at your capital.
Novo so you can use it comes with limits that are relatively few. Notably, it doesn’t limit deposits in any real way, that will be basically unheard-of contained in this category. This will make Novo perfect for growing businesses.
Finally, Novo is extremely user-friendly and boasts loads of features your company can use actually. From over a dozen app that is third-party, to virtual cards, to invoicing and mobile check deposits right from inside the app, Novo makes business banking easier.(*)Does That mean Novo is for sure the choice that is best for your business’s financial needs? Not necessarily alternatives that are— good. But Novo is preferable to your typical upstart business fintech.(*)