Bank Novo Review 2024 – Free Checking for Small Businesses

review-rating
If you’re a small business owner, freelancer, or entrepreneur, Novo Bank is a great option for a business bank account.
9/10
Cost
9/10
Features
8.5/10
Ease of use
9/10
Services
9/10
Keeping your personal and business bank accounts separate is important, if you’re self-employed or a small business owner. At the same time, not all personal checking accounts allow individuals to receive business income. That’s why freelancers and budding entrepreneurs should consider a business bank account since it allows them to accept payments from clients and customers and clearly distinguish between business and W2 income.
Novo Bank offers a fee-free business checking account, no minimum balance requirements, and integrations with popular business tools like Slack, Stripe, Shopify, and QuickBooks. This makes the account a great option for business banking, whether you’re just starting and need a place to store your side hustle cash or rely on your business for a full-time income.

What is Novo Bank’s business checking account?

Novo business checking account is free for business owners, entrepreneurs, and freelancers. You can apply for an account quickly and easily in under ten minutes, and the whole account can be managed online. While this account is a good fit for any business owner looking to separate business and personal income, it’s an especially good choice for businesses who want to save on fees and integrate with popular business tools.

How does Novo Bank’s business checking account work?

Signing up for an account through Novo Bank is quick and easy.
Bank Novo Review 2024 – Free Checking for Small Businesses
Next, you’ll need to provide a business email address and unique password to apply for an account.
Bank Novo Review 2024 – Free Checking for Small Businesses
Keep in mind that Novo Bank isn’t able to serve some businesses. These include businesses involved with cryptocurrency and money services, privately owned ATMs, marijuana, and gambling. Before applying, you should ensure your business doesn’t fall within any of these categories.
Bank Novo Review 2024 – Free Checking for Small Businesses
Next, you’ll need to fill out personal and business details, including your name, birthday, address, and social security number. You’ll also need to indicate your business type.
Bank Novo Review 2024 – Free Checking for Small Businesses
Novo Bank will ask you to provide some information about what kind of work you do, along with estimated information about your business’s finances, including your estimated monthly revenue, outgoing electronic transfers, incoming electronic transfers, incoming wire transfers, outgoing wire transfers, and international business transactions.
Bank Novo Review 2024 – Free Checking for Small Businesses
You’ll also need to provide a picture of your U.S. driver’s license or passport to verify your identity.
Bank Novo Review 2024 – Free Checking for Small Businesses
The next step is to review all of your information to make sure it’s correct, then submit your application to Novo Bank. They’ll review your information and reach out in about one to two business days to let you know their decision.
Bank Novo Review 2024 – Free Checking for Small Businesses

How much does Novo Bank cost?

Novo Bank is free, with no monthly maintenance fees, minimum balance fees, incoming or outgoing ACH fees, or domestic or international wire fees. They charge an insufficient funds fee of $27 and an uncollected funds return fee of $27.

Novo Bank business checking account features

Novo Bank has plenty of features to help small business owners and freelancers better manage their finances.

Online mobile banking

Novo is an online bank that allows you to manage your finances through mobile banking. You can make payments, receive payments, and connect to business tools like Stripe and QuickBooks. You can also view your account balance in the app and review recent activity and top spending categories.

Fast application

It takes under 10 minutes to apply for an account. Just answer a few simple questions about yourself and your business, then apply for review. In about one to two business days, Novo Bank will review your application and decide to approve your account.

Send invoices and receive payments

Depending on your business, you may need to send regular invoices to clients and customers. Novo Bank lets you easily send and track invoices and has multiple options for receiving payments. You can accept debit card and credit card payments for invoices via Stripe and accept invoice payments via Square.

Set aside money for taxes and expenses

While there are many benefits to owning and operating your own business, having to set aside extra money for taxes isn’t one of them. That said, Novo makes it easy to set aside money in Novo Reserves, whether you need a savings bucket for quarterly estimated payments or want to keep some cash in reserve. You can instantly move funds into and out of reserves. While it’s not yet available, Novo Bank is also working on a feature that automatically allocates income to selected reserves, making it easy to save up for big purchases or automatically put money aside for tax day.

Free and easy transfers

You can transfer money into and out of a Novo Bank account, whether you’re transferring income to your account or need to transfer to another account. There’s no minimum balance requirement; even link bank accounts for fast, easy transfers.

Deposit checks

You don't need to drive to the nearest bank branch or ATM to deposit a check – you can do it right from your phone. Novo Bank offers unlimited free mobile check deposits, and you can deposit a check in just a few seconds by snapping a photo in the app.

Send payments directly

Have to send regular payments for your business? Bank Novo makes it easy. You can send paper checks and ACH transfers without any fees, and you can also send international transfers through Wise. There are unlimited free transactions within the US.

Integrated with Stripe

Novo Bank is an excellent choice if you regularly use Stripe for your business. This is because the bank is a Stripe Verified Provider. You can see your Stripe balances in your account and receive your Stripe payouts instantly.

Accepted worldwide

Whether you do business internationally or just like to travel, Novo Bank is accepted worldwide. The card is EMV chip protected, and you can withdraw money anywhere and get refunded on any ATM fees.

Who is Bank Novo best for?

Novo Bank is a great choice for many different kinds of business owners.
  • Freelancers. Whether freelancing full-time or as a side hustle, having a separate business bank account may not be the first task on your to-do list. Still, it’s an important step to keep from muddying the waters between your business and personal finances. Novo Bank is free, easy to use, and comes with plenty of extra perks.
  • Small business owners. If you own a small business, Novo Bank’s integrations with popular business tools like Stripe and QuickBooks can save you time and money. The bank also makes sending invoices and receiving payments from clients and customers easy.
  • Entrepreneurs. Whether you’re an established entrepreneur or are just starting, Bank Novo is a good option for a business bank account. The bank also offers free perks and discounts from partners like Google Ads and GoDaddy to help your business ventures grow.

Who shouldn’t use Novo Bank?

While Novo Bank is a good fit for many business owners, it’s not the right choice for everyone.
  • People who don’t own a business. Business owners include people with a side hustle, freelance, work as contractors, or are self-employed. That said, if you don’t own a business, a bank account from Novo Bank probably isn’t right for you.
  • People who want a brick-and-mortar bank. Since Bank Novo is online, visiting a physical bank branch is impossible. This may be a dealbreaker for people who prefer to do their banking in person.

Pros and cons

Pros
  • Free to use: There’s no fee to open an account with Bank Novo, and the bank doesn’t charge any monthly maintenance fees or require a minimum balance.
  • No fees: Bank Novo doesn’t charge any ATM fees at any ATM network, incoming or outgoing ACH fees, or incoming domestic or international wire fees.
  • Business tool integration: Bank Novo integrates with tools and apps like Stripe, QuickBooks, and Wise.
Cons
  • No personal accounts: Bank Novo only offers business checking accounts at this time and has no savings account.
  • Can’t deposit cash: There’s no option for cash deposits to your Bank Novo account.
  • Doesn’t earn interest: Unlike some other business bank accounts, an account with Bank Novo doesn’t earn interest.

Novo Bank vs. competitors

Bank
Minimum balance
Monthly fee
APY
Bank Novo
$0
$0
N/A
BlueVine
$0
$0
2.00% up to $100,000
Mercury
$0
$0
N/A

BlueVine

BlueVine is one of Novo Bank’s main competitors regarding free online business bank accounts. Like Novo Bank, BlueVine has no minimum balance requirement and charges no monthly maintenance fees. BlueVine also features invoice factoring, 6- and 12-month lines of credit, and a 2.00% APY on balances of up to $100,000.

Mercury

Mercury is a business bank account designed specifically for tech companies and startups. Mercury allows businesses to automate cash management and network with other professionals.

FAQs

Are Novo Bank accounts FDIC insured?
Yes, business checking accounts from Bank Novo are backed by FDIC insurance. Deposit account services are provided by Middlesex Federal Savings, F. A.; Member FDIC.
Is Novo Bank free to use?
It’s free to open an account with Bank Novo, and there are no monthly maintenance fees or minimum balance requirements.
Does Novo Bank integrate with Zelle?
Unfortunately, Novo Bank doesn’t yet integrate with Zelle, but they do have plans to do so in the future. In the meantime, they offer free and unlimited ACH transfers from within the Novo app.

Is Novo Bank legit?

Novo Bank is a great option for a business bank account if you’re a small business owner, freelancer, or entrepreneur. Opening an account is free; the application process takes just a few minutes. There are no monthly maintenance fees, ATM fees, or no minimum opening deposit requirements. You can check your balance, send and receive payments, and manage your finances through one handy mobile app.
Novo Bank also has many integrations with business tools and apps that help you save time and money. These include Stripe, QuickBooks, Shopify, Slack, and Wise. You can easily send invoices and receive payments from customers and clients. Novo Bank even lets you set aside money for taxes and other big expenses throughout the year. It’s a good choice for a business bank account, whether you’re an established business or just starting.

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