Novo Review 2024: Is It the Best Business Bank Online?

Novo Review 2024: Is It the Best Business Bank Online?

Novo is a digital banking technology firm perfect for entrepreneurs running small businesses or side hustles. The company helps you distinguish between personal and business income while offering a dependable banking experience. Through its partnership with Middlesex Federal Savings F.A., Novo provides one of the top business checking accounts online.

Around 61% of internet users conduct their banking online. If you’re generating passive income from your side hustle or small business and are considering opening a small business checking account, Novo could be a good fit. However, read this in-depth Novo review to determine if it meets your needs.

>> Experience Better Banking With Novo >>


Novo is a FinTech company offering digital checking accounts tailored for small businesses. With this service, you can effortlessly open a business account, deposit income from your side hustle, and leverage banking data for bookkeeping and reporting related to cash flow and expenses.

Novo excels at making it easy to open a small business checking account without long lines or extensive paperwork. Novo’s services are also cost-effective, featuring no monthly fees or minimum balance requirements.


  • Unlimited fee-free business checking transactions  
  • Unlimited ATM fee refunds  
  • Seamless integration with third-party software like Shopify and QuickBooks  


  • No feature for automating recurring bill payments 
  • No options for opening savings or interest-bearing accounts 
  • No lines of credit or loans are available 

>> Open an Account With Novo Bank >>

Novo at a Glance

Novo is an independent FinTech firm that provides online financial services in partnership with Middlesex Federal Savings F.A. Users benefit from secure digital banking with the safeguards of a traditional bank and FDIC insurance.

The Novo platform grants access to a comprehensive set of digital tools aimed at helping entrepreneurs, freelancers, and small business owners handle their daily banking tasks. Setting up a Novo account is simple and quick, taking just ten minutes to access features like fee-free banking, complimentary ACH transfers, and unlimited invoicing.

Eligibility Criteria 

You don’t need a perfect credit score to open a Novo business checking account. The company doesn’t review credit histories since it doesn’t offer credit lines or lending services. If you need quick, straightforward access to capital with a business line of credit, consider credit unions for business banking accounts.

You can open a small business bank account for your LLC, sole proprietorship, partnership, or corporation. Exceptions include companies in money services, gambling, cannabis, crowdfunding, or cryptocurrencies. 

While opening a Novo account is relatively straightforward and rapid, you must provide essential business documentation. Additional eligibility requirements include:

  • The account owner must be a U.S. resident with legal status
  • You must be at least 18 years old and have a Social Security Number, it’s also possible to open a business account with an EIN
  • The account owner must have a valid U.S. mailing address

Who Is Novo Best For? 

Novo offers digital banking services, including a free checking account, invoicing tools, and smooth integrations with third-party business tools that simplify financial processes. Due to the absence of key features like cash deposits, a Novo account is best suited for entrepreneurs with small businesses or side hustles primarily operating online.

Novo Pricing

Novo provides cost-effective digital business banking. Beyond offering fee-free business banking accounts with no monthly maintenance fees, there are no fees associated with ACH transactions or wire transfers. Novo fully refunds all ATM fees, whether local or international. Additional benefits include free:

  • Transfers, regardless of volume
  • Debit card replacement
  • Check deposits
  • Paper statements
  • Stop payments
  • Mailed payments by physical checks


  • Opening Deposit – $50
  • Min Balance Requirement – $0
  • Cash Deposit Fees – N/A
  • Monthly Fee – $0
  • ACH Fee –  $0
  • ATM Fees – Fully Refunded
  • Wire Transfer Fees – 0%
  • Foreign Transaction Fees – 0%
  • Returned Payment – $27
  • Insufficient Funds – $27

>> Check Out the Best Pricing for Novo Bank >>

The primary fees users encounter include a $50 opening deposit to access the platform’s features and $27 for insufficient funds or reversing uncollected funds. 

To make a cash deposit using the platform’s mobile check deposit feature, you must purchase money orders from approved vendors. It’s also important to be aware of the following transaction limits and expected processing times.

Novo Features

Novo provides a solid array of features and tools for its business checking accounts, benefiting entrepreneurs, freelancers, and small business owners. Beyond a quick and straightforward application process, here are additional features users appreciate on the platform.

Fee-Free Banking  

Novo offers fee-free banking, which means freelancers, solo entrepreneurs, and small businesses can avoid recurring account maintenance fees. The only expense is a $50 initial deposit.

Mobile App

A Novo online business checking account empowers users to manage their business finances from anywhere. By downloading the mobile app on your iOS or Android device, you can access a suite of online and mobile banking features at your fingertips.

Free ACH Transfers  

Novo’s free ACH transfers from other banks simplify funding your Novo account or accessing your funds. While Novo doesn’t accept cash deposits, you can easily deposit a physical check by snapping a photo. You can fund your account by integrating it with Stripe to receive credit and debit card payments from clients.

Another way to fund your account is by purchasing and depositing a money order using the platform’s mobile check deposit feature. Some of Novo’s approved money order vendors include grocery stores, USPS, and Walmart.

Novo offers a free debit card, ensuring a full refund of ATM withdrawal fees. You can also use the Novo Virtual Card to pay vendors via mailed checks, ACH transfers, or wire transfers. The free transfers are also handy for paying yourself from your side hustle by occasionally moving funds to your personal account.

Unlimited Invoicing

The Novo platform lets you create, send, and manage unlimited invoices from your checking account. You can also accept invoices from customers via Stripe or ACH transfers.

Business Budgeting 

With Novo reserves, you can establish up to 5 reserves to set aside funds for specific expenses like payroll or taxes. This helps you plan, set multiple budgets and business goals, and transfer your statements to bookkeeping software like QuickBooks.


Novo enhances flexibility by offering seamless integrations with third-party software. After installing the mobile app on Android or iOS, you can link your account with various digital tools, including Zapier. This connection enables access to thousands of business apps that automate diverse processes.

You can integrate your Novo business checking account with approximately 15 popular apps. For eCommerce needs, the platform supports integrations with Amazon, Shopify, Etsy, and WooCommerce. It also connects directly with accounting software like Xero and QuickBooks. You can link to POS partners such as Square and Stripe.

Having a Novo business checking account qualifies you for discounts on software from the platform’s partners. For example, you receive fee-free credit card processing up to $20,000 with Stripe. Other Novo partners providing attractive discounts include Snapchat, HubSpot, QuickBooks, and Gusto.

>> Experience Better Banking With Novo >>

Novo Features 

Novo is a platform where freelancers, solo entrepreneurs, and small businesses can establish business checking accounts for straightforward and free transactions through ACH transfers or integrations with TransferWise, Slack, and Stripe.

However, the platform may not be the best digital banking solution for some ventures, personal consumers, or larger enterprises.

Consider the following alternatives if the Novo business checking account does not align with your business needs or goals.


One excellent alternative to Novo is Kabbage Business Checking. This FinTech company offers competitive checking accounts with no monthly or transaction fees. Users can also benefit from other Kabbage products, including business lines of credit ranging from $2,000 to $250,000.

Kabbage Pricing  

Like Novo, Kabbage provides a fee-free business checking account. Additional pricing details include:

  • No minimum balance requirement
  • No monthly fee
  • Unlimited electronic transactions at no cost
  • Teller cash withdrawals at $3 each
  • Foreign transactions at 3% of the transaction amount
  • Domestic wire transfers at $25 per transaction
  • 1.10% APY on balances up to $100,000

Who Is Kabbage Best For? 

Kabbage is ideal for entrepreneurs and small businesses seeking the flexibility of a business checking account and other financial products like a business line of credit. Established companies operating for at least a year can benefit from loan terms up to 18 months with an APR averaging 9% to 36%.

How Does Kabbage Compare to Novo?

Both Kabbage and Novo offer reliable business checking accounts, but they target different audiences. Novo is best for startups, freelancers, and small businesses that want to separate their personal and business accounts without loans.

Conversely, Kabbage suits more established ventures and business borrowers with good FICO scores who want a business line of credit. Learn more about its features and pricing in the Kabbage review.


  • No minimum opening deposit, balance requirement, or monthly fees
  • 1.10% APY interest on account balances up to $100,000
  • Direct integration with Kabbage Loans


  • No third-party software integrations
  • Cash deposits incur a fee of $4.95 per deposit
  • Complex fee structure for outstanding balances

>> Experience Better Banking With Kabbage >>

Bluevine Business Checking

Bluevine is a FinTech company that partners with Coastal Community Bank to provide innovative digital banking solutions ideal for small businesses seeking feature-rich checking and savings accounts.

While not entirely fee-free, Bluevine eliminates most fees and offers a competitive interest rate on balances up to $100,000.

Bluevine Pricing  

Bluevine offers various online banking features free of charge, with cash deposits available through Green Dot at a $4.95 fee. Users also enjoy a 1.5% Annual Percentage Yield for balances up to $100,000.

  • No minimum balance requirement
  • No monthly fee
  • Unlimited in-network ATM transactions at no cost
  • Out-of-network ATM transactions at $2.5 each
  • Bill Pay with Credit Card transaction fee at 2.9% of the transaction amount
  • $0 for ACH and incoming wire transfers
  • Outgoing wire transfers at $15 per transaction

Who Is Bluevine Business Checking Best For?

Bluevine’s business checking account is ideal for entrepreneurs and small businesses primarily conducting online transactions. If you don’t require traditional branch-based banking services, this platform offers a reliable option, helping you avoid high transaction and account maintenance fees while earning interest on unused funds.

How Does Bluevine Compare to Novo?  

Bluevine and Novo provide comparable financial tools. However, Bluevine has an advantage in offering attractive interest rates on balances up to $100,000 and no opening deposit requirement. 

While Novo excels in integrations with third-party software, a Bluevine checking account is less expensive to maintain. Learn more in the Bluevine review and consider other banks like Lili and Oxygen for lower maintenance costs.


  • No minimum opening deposit, balance requirement, or monthly fees
  • High-yield APY, up to 1.5% (terms and conditions apply)
  • Unlimited fee-free transactions


  • No free cash deposits (vendor fees apply)
  • No customer service on weekends
  • No savings account option

>> Experience Better Banking With Bluevine >>

Capital One 360 Banking

Unlike Novo, Kabbage, and Bluevine, which are FinTech companies, Capital One is an online bank offering full-service digital banking at reasonably low costs compared to traditional land-based banks. Besides business and commercial solutions through 360 Checking accounts, the company also provides credit cards and auto loans.

Capital One 360 Banking Pricing 

While not the cheapest, Capital One 360 Banking is straightforward with all fees.

  • No minimum balance requirement
  • No monthly fee
  • In-network ATM transactions at no cost
  • No overdraft fees
  • Stop payment at $25 per item
  • Outgoing domestic wire transfer at $30
  • Outgoing foreign wire transfers at no cost

Who Is Capital One 360 Banking Best For? 

Capital One 360 Banking is a solid alternative for entrepreneurs and small businesses wanting the perks of a digital FinTech company with the option to visit local bank branches for in-person support. Capital One stands out with its hundreds of branches and Cafes across the U.S.

How Does Capital One 360 Compare to Novo?

Capital One is a better choice than Novo if you need more than just a business checking account. It offers a range of financial and banking resources and a generous APY interest on all checking accounts. 

However, Novo is more affordable for small businesses, freelancers, and startups. Learn more in the Capital One review and consider the detailed US Bank and Axos Reviews when searching for a business checking account.


  • Many mobile and online banking tools and features
  • Automatic savings account transfer option
  • 0.10% APY interest on the checking account with balances up to $1


  • No ATM fee refunds
  • Bank branches limited to two Southern and seven Eastern states
  • Non-competitive CD rates

>> Experience Better Banking With Capital One >>

Frequently asked questions

Novo doesn’t have its own ATM network, but you can use any ATM to withdraw cash with your Novo debit card. The company will reimburse all ATM fees, including those from international ATMs. However, ATM withdrawals are capped at $1,000 per day.

To deposit funds into your Novo business account, you can receive ACH transfers from your personal bank account or deposit a physical check by taking a photo. Another option is to accept credit and debit card payments from clients via invoices. You can also deposit cash by purchasing a money order from an approved vendor using the check deposit feature.

Novo has fixed limits for check deposits, ATM withdrawals, ACH transfers, and POS purchases. However, you can log into the app and request adjustments to the limits for mailed checks, check deposits, and ACH push limits.

>> Join Novo Today! >>

Final Thoughts on Novo Review

As digital banking users are projected to surpass 65% of the U.S. population, the market is rapidly filling with digital business checking account platforms. Our thorough review of Novo helps determine if this relatively new FinTech company has the features you need to manage your business finances effectively.

Novo is a strong contender due to its affordability, integrations, and offerings tailored to small businesses. However, alternatives like Capital One and Kabbage are appealing to larger enterprises that can handle additional fees for enhanced functionality.

If you’re considering opening a business account, check out our comprehensive reviews of Bank of America, NBKC Bank, and Chase Bank. They provide insights into the advantages, disadvantages, and other options.

>> Open a Bank Account With Novo >>

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Judith Harvey is a seasoned finance editor with over two decades of experience in the financial journalism industry. Her analytical skills and keen insight into market trends quickly made her a sought-after expert in financial reporting.