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The bottom line: The Novo account is featured on Insider’s list of the best free business checking accounts. It has a Novo Business Checking Account – Minimum Deposit minimum opening deposit and Novo Business Checking Account – Fees Display, and it refunds all ATM fees. But it’s an online-only platform, so you’ll want to look elsewhere for in-person business banking.
Novo Business Checking Pros and Cons
ProsCons
Refunds all ATM fees
Novo Business Checking Account – Minimum Deposit minimum deposit
No monthly service fees
Management tools like QuickBooks
Only offers a checking account, no other types of business accountsDoes not pay interestNo physical branchesNo way to deposit cashNo outgoing domestic wire transfers
Novo Business Checking Account Review
Novo is a free account with unlimited free monthly transactions. It features management tools such as Slack, QuickBooks, and Shopify.
The account comes with a debit card. Even though Novo doesn’t have an ATM network, you can get refunds on all ATM fees.
The account doesn’t allow you to make outgoing domestic wire transfers. You can only make free ACH transfers, which take about two to three business days.
About Novo
Novo is an online banking platform, not a bank. But it’s partnered with Middlesex Federal Savings Bank, which is in charge of the platform’s banking. Middlesex Federal Savings is FDIC-insured, so individual accounts are protected for up to $250,000.
If you have any questions, Novo has an extensive FAQ section on its website for common questions. You can also email or use live chat.
The Novo app has a 4.8 out of 5 rating from the Apple store, and a 4.6 out of 5 rating from the Google Play store.
Is Novo Trustworthy?
We use ratings from the Better Business Bureau to see how businesses deal with customer complaints. Novo has an F rating from the BBB due to the volume of customer complaints, Novo’s lack of response to a few complaints, and government action taken against the business.
In 2022, Novo entered into a settlement with the California Department of Financial Protection and Innovation stating that Novo would no longer use the word “bank” or “banking” to describe its products, since it is not a registered bank. (Its products are sponsored and insured by Middlesex Federal Savings Bank.)
A good or bad BBB rating isn’t the end all be all, though. To get a better idea of whether a banking platform will meet your specific needs, talk to other business owners about their experiences or read online customer reviews.
Novo Business Checking FAQs
Is Novo a bank?
No, Novo is not a bank, it’s a fintech company that offers a business checking account. But it is backed by Middlesex Federal Savings Bank, which gives it the ability to offer certain financial products.
What bank owns Novo?
Middlesex Federal Savings Bank owns Novo.
Is Novo FDIC-insured?
Yes, the money in your Novo account is FDIC-insured for up to $250,000 for an individual account. Novo deposits receive FDIC insurance through its partner bank, Middlesex Federal Savings.
How long has Novo been around?
Fintech company Novo was founded in 2016.
Does Novo run your credit?
Novo does not run a credit inquiry when you apply for an account.
How Novo Compares
Novo vs. BlueVine
Novo and BlueVine are both fintech platforms that offer business checking accounts. The BlueVine Business Checking Account – Product Name Only is a great option if you want to earn interest, and unlike Novo, it lets you deposit cash (although this usually costs a fee).
Novo is probably the better option if you frequently use ATMs, though. While BlueVine doesn’t charge out-of-network fees, it also doesn’t offer refunds if an ATM machine charges you. Novo reimburses all ATM fees.
Novo vs. Axos Business Banking
Axos Business Banking is the better option if you want to open more than just a checking account — it also has business savings, CD, and money market accounts. Like Novo, it offers unlimited ATM fee reimbursements. You also might be eligible for a cash bonus of Axos Business Interest Checking – Ongoing Bonus. Novo is still a strong business checking account, but its offerings are a tad more basic.
Why You Should Trust Us: How We Reviewed Novo
To review the Novo Business Checking account, we used our business checking account methodology. We look at ethics, the mobile app, customer service, ATM networks/fees, transaction limits, minimum deposits, and monthly service fees. Then we assign an account a rating between 0 and 5.