Novo Bank Review: Pros, Cons & Alternatives 2022

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Reviewed by Jazmin Castello
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Novo Business Checking

Cost Value

76%

Customer Service

72%

Ease of Use

84%

Pros

  • Refunds on all ATM fees worldwide
  • No monthly fees or minimum balance requirement

Cons

  • Can’t deposit cash
  • No recurring payments available with bill pay
  • ATM access
  • Online banking
  • Mobile banking
  • $0 recurring fee
  • Founded in 2016
  • Origin in New York, New York
  • Available across all US states

Novo is an independent financial institution that partners with banks, F.A., Middlesex Federal Savings bank to provide a digital banking experience to small business owners. Novo business checking account hit the mark with almost free banking services. 

Our Novo bank review will walk you through everything you may want to know about this bank to help you decide if it is the right fit for you. 

Novo business checking account comes with all the features you may be looking for in a checking account. The company also offers some distinctive features that you may not find in any other checking account.

Novo Bank Advantages

  • No monthly fees and minimum balance requirement
  • All ATM fees reimbursement
  • No recurring fees, no ACH transfer fees, and no incoming wire fees.
  • Online banking with unlimited invoicing and bill pay.
  • Integrates with popular tools like Stripe, QuickBooks, Shopify
  • User-friendly mobile app

Novo Bank Disadvantages

  • No interest-earning accounts
  • It’s no cash deposits
  • No lending options
  • No recurring payments are available with bill pay

Novo Online Bank Features

You can access your Novo account on the go. The online mobile app features include:

  • Remote check deposit 
  • Mobile wallets 
  • ATM access 
  • Invoicing 
  • Payment 
  • Reserve money

Novo Bank Overview

Novo Business Checking

????
4.0 stars

Best Overall Value

  • Founded in 2016
  • Origin in New York, New York
  • Available across all US states

Open Account

Novo Bank Service Review

Review of Novo Bank

Overall Pricing and Value
96%
96%
Cost Value
100%
100%
Customer Support
96%
96%
Ease of Placing an Order
100%
100%
Included Features
100%
100%

In addition to common features that you may find in most business checking accounts, Novo offers several other unique features that no business account may offer to you.

Account Features

Some of the Novo distinguishing account features include its ability to integrate with several small business tools. Some of these tools include Stripes, QuickBooks, and Shopify. That is, from your Novo account you can view your Stripe balance of customer payments, track your QuickBooks transactions in real-time, and transfer money internationally with Wise.

Another unique feature is the Novo reserves which enable you to set aside money for specific purposes, such as taxes, payroll, or other expenses. You can create up to five Reserves for multiple budgets and goals as part of the Novo account.

You can also sign up with other accounts and services with Novo partners such as Google Cloud, QuickBooks, HubSpot, and more to get Novo discounts and cash savings.

In addition to the unique features above, the Novo checking account also offers a standard that you may find in most checking accounts. These include: 

Business debit card – that you can link to the digital wallet or use ATMs worldwide

Transfer features– enables you to add funds to your Novo account via Venmo, ACH, PayPal, wire transfer, and mobile check deposit

Savings – Up to five sub-accounts that don’t earn interest

Mobile deposit– free Novo mobile app is available for iOS and Android

Bill payment– unlimited free payment with ACH and paper check

Digital Wallet – Connect your Novo card to Google Pay or Apple Pay and use your Novo business banking account for card-free transactions.

Invoice – You can create and manage an unlimited number of invoices through the Novo app. You can also accept the invoices by card using Stripe if you’ve activated the Stripe integration or via ACH/electronic transfer.

International access– You can use your card in foreign countries and still get a refund on any ATM fees you’re charged. You can also receive instant notification for every transaction when you set a travel notice. 

However, Novo’s lack of direct cash deposit into Novo business banking account is disappointing to most clients. Besides, Novo doesn’t have a savings account and therefore doesn’t earn interest. 

Fees and Restrictions

You will only require a $50 deposit to open the account. After that, there are no recurring charges. No monthly fees, minimum balance, and no hidden fees. 

Besides, your account cannot be closed due to inactivity or insufficient funds. But if you have a balance of $0 for over 130 days, the account may be closed automatically.

The transaction limits are as follows: 

  • ACH Pull/Push $1,250/$5,000 per day
  • Mailed check $5,000
  • Check deposit $20,000 & 40,000/month along with monthly total of 20
  • ATM withdrawal $1,000

Account Management and Support

If you plan to deposit a large amount beyond the limits we have offered in your account, you can reach out to the Novo support team through the Novo app to increase these limits. Novo will request two to three days advance notice through the Support tab in the app, so your deposits are not flagged for fraudulent activity.

Even though In-App is the preferred contact method for all your queries, you can also reach out to the Novo customer support team via email and phone. The support team is available from Monday-Friday, from 9 AM to 6 PM Eastern time.

Other customer support options that will offer you vital information include the FAQ section, Novo blog, and social media. 

Reputation and Financials

Novo bank has a good reputation among its customers. Most customers love it for quite a number of reasons including:

  • No fees
  • Great customer service
  • User-friendly interface
  • Reliable communication
  • Useful integration

That said, Novo boasts several 5-star ratings among users on various third-party sites. Their average rating among 951 reviewers on TrustPilot is 3.9 which is great. 

However, there are complaints from another customer most of which point to:

  • No direct deposit
  • No interest
  • Debit card limit
  • Sudden account closed without warning

Who is Novo Bank best for?

Novo bank is a great choice for small business owners such as freelancers and contract workers who want a digital-first banking experience to manage their business finances. The company offers almost free banking services with only $50 required to open the account. 

Every small business owner can afford this, provided there will be no monthly charges, no minimum account requirement, and any other hidden fees once the account is opened. 

Overall

Novo fee-free banking services make it a great choice for small business owners. The starting balance requirement of $50 is also reasonable. Once the account is established, expect no recurring fees as well as zero minimum balance to maintain. 

The full reimbursement on all ATMs, easy-to-use mobile app and its ability to offer full functionality are other key features that can’t go without being mentioned.

However, its inability to make cash deposits and the lack of interest-bearing account options are some of the disappointments you will have to put up with. We also realized Novo bank doesn’t offer any credit or lending options at the time of this review. 

So if you are interested in earning interest or want a bank that allows business growth, this might not be the right bank for you. That said, you may consider the following alternatives. 

Novo Bank Alternatives

LendingClub

Founded in 1987 in Boston, Radius, now operating as LendingClub, operated as a brick-and-mortar bank until 2012 when they decided to go completely digital. The bank offers most of the Novo features including no ATM fee and fee rebate for out of network ATMs, no monthly maintenance fees, or minimum balance requirements among other features. 

However, it outshines Novo by offering a checking account that earns interest, cashback rewards, and lending options. 

Chase Business Complete Banking?

Chase bank is the largest U.S. bank by assets. It offers numerous banking products and services that make running a small business easier. 

Chase bank allows for both electronic and cash deposits. If you are looking for both in-person banking, online banking, or mobile banking at the same time, this is a great checking account to consider. You’ll be able to deposit up to $5,000 every month without having to pay a fee.

However, there is a monthly fee of $15 and a minimum daily balance requirement of $2,000. 

Conclusion

Novo deserves credit for offering a business checking account that largely lacks fees. It doesn’t charge monthly fees, does not charge for incoming and outgoing ACH transfers, and has no minimum balance requirement. The only fee you will incur is the $50 required to open the account. 

For that reason, every small business owner can afford it. If you find it the right fit for you, you can apply for your Novo account now in just a minute. 

Frequently Asked Questions (FAQs)

Is Novo a reputable bank?

Novo bank has earned a reputation among users due to its cheaper services. The bank charges nearly no fees making it great for small business owners.

Can I deposit cash in Novo bank?

You can deposit into your mobile account by purchasing money orders from different vendors, such as Walmart grocery stores. Then use the Novo check deposit feature to deposit the check into your Novo checking account.  

Does Novo offer a savings account?

Currently, Novo doesn’t offer savings accounts or interest on their checking account. If you are looking for an interest-bearing account, you may find an alternative.

How do I withdraw money from Novo bank?

You can use an ATM with your Novo debit card to withdraw money. The good thing is, Novo will refund any ATM fee incurred into your account at the end of every month

Does Novo have fees?

Novo doesn’t charge monthly fees nor does it have minimum monthly requirements. The only fee you will incur is the $50 minimum deposit for opening an account.

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ABOUT THE AUTHOR

ABOUT THE REVIEWER

Jazmin Castello holds a Master's degree in Business Management, owns two companies, and has also published a self-help book. When she is not working or writing, she likes to spend time with her family and to travel.

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Bizreport Advisor adheres to strict editorial integrity standards avoids using tertiary references. We have strict sourcing guidelines and rely on peer-reviewed studies, academic research. To ensure the accuracy of articles in Bizreport, you can read more about the editorial process here.

  1. https://www.novo.co/features?gspk=Y29tcGVsbw&gsxid=fqhwHZTna4zv&utm_campaign=partnerstack&utm_medium=partner&utm_source=compelo