Monday, December 2nd
2024 Business Bank Account Reviews
Novo
- Free business checking account with up to 20 "Reserves” for cash flow management
- No monthly fees or minimum balance requirements
- No overdraft fees
- Reimbursement of ATM fees of up to $7/month
- Easy integrations with Stripe, Wise, Square, PayPal, Gusto, QuickBooks, and 50 other tools
- Used by over 250,000 small businesses
- Fintech backed by Middlesex Federal Savings
- "A-” rated by the BBB
Novo is designed to make banking easier for small businesses. As a fintech backed by Middlesex Federal Savings, Novo connects you with easy-to-understand business checking and debit cards, minus all of the annoying downsides you'll find with bigger banks (like monthly fees and minimum balance requirements). Over 250,000 companies have already benefited from what Novo has to offer.
Nothing complicated
Using Novo is blissfully simple. You don't have to worry about having a minimum balance, encountering overdraft fees, or having to go in to fill out paperwork. You just create your business checking account, fund it with the amount you choose, and you're off.
Create up to 20 sub-accounts
One feature that we consider a must-have for business banking is the ability to have multiple accounts for cash flow management. Novo offers that through what they call "Reserves”: you can identify up to 20 different "envelopes”, if you will, to set aside funds for taxes, future expenses, owner draw, or any other categories that you need for your business. But, unlike some competitors, these are not actually separate accounts; they'll be considered part of your Novo checking account's total balance.
More than 50 integrations offered
As you'd expect from a digital business banking platform, Novo offers hassle-free integrations with over 50 tools you may already be using. Those include Wise, Square, PayPal, Gusto, and QuickBooks. And, if you're a Stripe user, you can opt into Novo Boost for faster payments (although they're capped at $5,000 in outstanding credits).
Create invoices through your account
And, even if you're using a different invoicing system, you can use Novo to create as many customizable, no-cost invoices as you wish, right through your bank account. That's a nice perk for brand-new business owners who might not have gotten around to setting up a third-party platform for accounting or business management yet, too. (Just don't get excited about Novo giving you options for payroll, though; that link at the bottom of the site gave us a 404 error.)
Solid reputation
Novo is generally well-liked by small business owners, and this fintech has an "A-” rating from the Better Business Bureau (with a slight downgrading from the BBB for a previous issue with Novo not making it clear that they're not the actual bank behind the product; they've fixed that and display that very obviously throughout the website now). Sentiment is positive overall; you'll see plenty of five-star reviews on Google and via Trustpilot that say the business banking tools offered by Novo are perfect for mostly-virtual companies who don't need any in-person transactions.
A few downsides
However, there are some complaints found there too. More than one person said they wished Novo offered any kind of interest-bearing business bank accounts (and many of Novo's internet-only rivals do). Several complaints referenced slow payment turnaround times (in both directions), as well as having difficulties getting timely help from Novo's customer support reps. That included one business owner who had trouble invoicing a client that had paid several previous times with no issues - and after a month of back-and-forth with Novo, there was still no answer or solution (she finally transferred her business banking elsewhere).
Above average, with room to grow
If your business banking needs are fairly simple, and you're not worried about earning interest on your balances, Novo isn't a bad option. We really like a lot of its features (like "reserves”) and can appreciate how its fee-free structure would help keep money in owners' pockets. Plus, if you're brand new as a company and want a platform that can expand as you do (with integrations as you need them), Novo fits the bill. But, some of those customer issues keep this fintech from earning one of our higher ratings.
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Where Should You Open a Business Bank Account?
Running a business means keeping your finances in order, and the right bank can help you do just that. But with so many options available, it can be tough to know where to start. When you're ready to open a business bank account, you'll want to consider a few key factors to make sure you're choosing the right one for your needs.
First, think about your business' cash flow. You need easy access to your money so you can cover expenses, pay employees, and handle daily operations without a hitch. A bank with fast and hassle-free deposits and withdrawals is essential. If you ever find yourself struggling to pay vendors or make payroll because of banking delays, it could harm your business in the long run. Picking a bank that works smoothly with your financial schedule is crucial.
Business Bank Account FAQ
Continued from above...
Next, be mindful of the fees associated with business accounts. Banks often charge for everything from ATM use to wire transfers, and these fees can add up quickly. Some banks may also charge monthly maintenance fees or penalties if your account balance dips below a certain threshold. Before opening an account, take a close look at these costs and decide if they're worth it for your business. The goal is to avoid paying for services you don't need, while making sure the services you do need are affordable.
Another important factor is how the bank integrates with your business' accounting systems. Does the bank support connections with your accounting software or allow your accountant to access the account? This can save time and simplify your financial management. Some banks also let you set up permissions for other team members, so they can help manage payments or reconcile transactions. These tools can make day-to-day operations much easier and more efficient.
Got all that? Good. Now you're ready to take a look at some of today's most popular options for business banking, not just big-name financial institutions with both brick-and-mortar and digital services, but also online-only fintech platforms that often have the bells-and-whistles missing from "brand-name” financial institutions. Here's a helpful checklist to help you to compare and decide:
- In-person vs. online. Do you need the reassurance of having a physical branch nearby to do your business banking? Or are you comfortable with going fully digital? There are pros and cons to both. You may need a business bank with a brick-and-mortar option if you're going to make lots of cash deposits every month.
- Features. What are the absolute must-haves for your business banking? For some, that's the ability to have sub-accounts for easy cash flow management. For others, it's having access to a wide network of ATMS. And don't forget about integration with any software you might already be using (like QuickBooks). It's okay if you don't have that worked out yet, but keep in mind that big banks tend to offer fewer features focused on small businesses.
- Fees and limits. Be very aware of what your business banking will cost, both from month-to-month and for the types of transactions you'll be making most often. Pay attention to minimum deposit/balance requirements, limits on wire transfers (inbound/outbound), transaction limits, and so on.
- Reputation. See what the Better Business Bureau has to say about the bank, but also what business owners like you have reported. Has the banking experience made life easier to run their company or has it been a hassle?
The experts at Top Consumer Reviews have researched and ranked many of the most popular options for business banking today. This information can help you keep some of the most important factors in mind, so that you can choose an institution that helps you manage your finances effectively and supports your company's success.
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