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Home » Banking » Bank Reviews » Novo Review: Unique Small Business Checking Accounts

Novo Review: Unique Small Business Checking Accounts

Last Updated On November 14, 2019 Robert Farrington Leave a Comment

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Novo

Are you trying to grow a side hustle into a small business? Or perhaps you’re finally starting to see some passive income from online book royalties or from your online courses.

Whether you’re just getting started with a side hustle, or you’re already earning decent income, one of the most important steps you can take as an entrepreneur is to separate your business and personal income.

Using a business checking account for depositing your business income and making your business expenses can help you take your business to the next level. But what bank should you use for your small business checking account?

One company to consider is Novo. Novo is a fintech company that is making it easier for small business owners to open checking accounts. See how they compare to the other top small business checking accounts.

Bonus: Right now, open a Novo account with at least $50, and you get a $25 bonus!

Here’s what you need to know about the company in our Novo Bank review.


Novo Bank Logo

Quick Summary

  • No-fee digital checking platform for business owners
  • Mobile friendly, online check deposit, and more
  • Integrations with top small business providers
Get Started

Novo Business Checking

Min Opening Deposit

$50

Min Balance Requirement

$0

Monthly Fee

$0

Rewards

None

ATM Access

Unlimited

Availability

Nationwide

Promotions

$25

Quick Navigation
What Is Novo?
What Makes a Checking Account from Novo Special?
Should I Open My Business Checking Account at Novo?

What Is Novo?

Novo isn’t a bank. It is a tech company that’s working to bring small business banking into the digital era. Its goal is to create a compelling banking experience by allowing small business owners to quickly open accounts and to use their banking data for bookkeeping and reporting.

Right now, Novo only offers online business checking accounts. Its accounts are offered through the company’s financial partner Middlesex Federal Savings.

What Makes a Checking Account from Novo Special?

For someone with no experience with business checking accounts, a business checking probably seems plain vanilla. However, opening a business banking account can be a frustrating experience. Additionally, business banking accounts often carry hefty monthly fees.

Novo’s business checking account differentiates itself on two points:

  • The account is easy to open. You can open your business account as a sole proprietorship if you haven’t filed documentation for an LLC (or another corporate structure) in your state. The documents you need to upload are quickly identified.
  • There are no ongoing fees. You won’t pay for debit cards, a monthly fee, a statement fee, or any other ongoing fee. You may have to pay a $27 fee for non-sufficient funds (if you overdraft) or a $27 fee for a returned item. However, these costs are reasonable compared with the high cost of other business checking accounts.

Novo also allows you to export your statements, so you can easily upload a spreadsheet to QuickBooks or other bookkeeping software.

Should I Open My Business Checking Account at Novo?

Opening up a small business checking account at a local bank shouldn’t be expensive or difficult. But for whatever reason, it is.

Few brick-and-mortar institutions offer free business checking accounts. And those that do require you to stand in line, bring a bunch of documentation, and fill out paperwork to officially open the account. For entrepreneurs who only earn a few hundred dollars in profit each month, the normal rigmarole is excessive.

Novo clearly eases the process. Since Novo’s accounts have no monthly fees, the business checking account seems like a good idea, especially for side hustlers and entrepreneurs who don’t have a business checking account yet.

That said, I have one word of caution about opening a Novo checking account. Novo is not an established business. If it folds, or if it gets acquired, you may have some headache figuring out how to use a new banking system. 

It is really annoying to deal with bank closures when you have your account at the institution. Consider that as a possible risk before you move forward with Novo.

Novo
Novo Review
  • Fees and Charges - 100
  • Products and Services - 70
  • Customer Service - 80
  • Ease of Use - 80
  • Tools and Resources - 80
82
  • Try Novo
  • Filed Under: Bank Reviews Tagged With: Review
    Editorial Disclaimer: Opinions expressed here are author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, or other advertiser and have not been reviewed, approved or otherwise endorsed by any of these entities.

    Comment Policy: We invite readers to respond with questions or comments. Comments may be held for moderation and are subject to approval. Comments are solely the opinions of their authors'. The responses in the comments below are not provided or commissioned by any advertiser. Responses have not been reviewed, approved or otherwise endorsed by any company. It is not anyone's responsibility to ensure all posts and/or questions are answered.

    About Robert Farrington

    Robert Farrington is America's Millennial Money Expert, and the founder of The College Investor, a personal finance site dedicated to helping millennials escape student loan debt to start investing and building wealth for the future. You can learn more about him here.

    One of his favorite tools is Personal Capital, which enables him to manage his finances in just 15-minutes each month. Best of all - it's free!

    He is also diversifying his investment portfolio by adding a little bit of real estate. But not rental homes, because he doesn't want a second job, it's diversified small investments in a mix of properties through Fundrise. Worth a look if you're looking for a low dollar way to invest in real estate.

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