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Thursday, October 6th
Novo is a financial technology company facilitating banking transactions for customers of Middlesex Federal Savings in Massachusetts. It supports over 15 payment and eCommerce systems like Stripe, PayPal, Shopify, QuickBooks, eBay, Etsy, Woo, Square, and others. Novo's app lets you transfer funds, deposit checks instantly, reserve money for future purchases, and access your funds with the Novo Virtual Card in-app.
Very Few Fees
Novo does not charge a fee to open an account, nor does it have any regularly scheduled or hidden fees. There is a $27 fee for insufficient funds and another $27 fee for uncollected funds returned. There is a minimum amount of $50 to open an account. And if you want to do instant transfers (same-day ACH), there is a 1.5% transaction fee with a minimum of $0.50 and up to a maximum of $20 for all instant transfers. All other activities are fee-less.
Novo allows $1,000 per day cash withdrawals with no fee from its own ATMs, which are located in the Medford/Somerville, MA area. For nationwide ATMs, Novo will refund any fees incurred at the end of each month back to your account, including international ATM fees.
You can also get cash back from merchants who offer that feature or get a cash advance at most major banks. For cash deposits, unfortunately there are no ATMs equipped for Novo to handle this. You'll need to purchase a money order from USPS, Walmart, and grocery stores and then use the mobile check deposit feature in the Novo app to deposit the check (what a pain in the neck!).
No Interest-bearing Checking
Novo does not offer interest-bearing checking or savings accounts. But, they are considering it for users in the future.
QuickBooks Integration, But Not For Desktop
Novo can be integrated with QuickBooks Online (but not QuickBooks Desktop) for all your accounting needs through the Novo app, the web app, or the QuickBooks website. After QuickBooks is connected, Novo will automatically send transactions each hour electronically.
Be Careful Who You Allow to Access Your Account
You can also add your accountant as a user of your Novo account, but there is no way to limit what any user can do, so you will run the risk of having money withdrawn from the account without your knowledge. Be sure you fully trust those you give access to.
Transfers between accounts in Novo happen through the browser on the desktop or via the app on mobile devices.
Bill Pay Is Not Available
Traditional online bill pay is not available in Novo business checking accounts, but you can create invoices and track and get paid through their invoicing system.
Sub-accounts Are Called "Reserves"
Novo has named its multiple accounts or sub-accounts feature "reserves" . Reserves allow you to allocate funds to various categories so that you can better budget for expenses, taxes, payroll, and other needs. After creating a Reserve, you get to it through the Novo dashboard, the App Marketplace, or in the Reserves section of the web app. You can also allocate funds to Reserves automatically by creating custom rules with percentages. Reserves can be used to make direct payments. You can also retroactively assign expenses to Reserves on the transaction's detail screen by selecting the "Pay from Reserve" dropdown.
Various Limitations On Transactions
Novo's limits on ACH are $1,250 per day for pulls and $5,000 per day for pushes. The limit for mailed checks is $5,000 per day. Check deposit limits are $20,000 per day or $40,000 per month with a 20 checks per month transaction limit. For Point of Sale (POS), the limit is $5,000 per day or 20 POS transactions per day. For ATM withdrawals, expect a limit of $1,000 per day.
Support is only available via a searchable FAQ system, email, and the phone number on the back of your Novo debit card. There is no live chat.
Lackluster Reviews from Customers
Novo has a Better Business Bureau non-accredited rating of "A-" . A bare majority of customers like Novo. Those who like it say they enjoy the benefits of all the technical integrations with third-party platforms, great customer service, transfers clearing on time, refunded ATM fees, and perks/reward system.
Customers who did not like their experience with Novo complained of unauthorized or fraudulent behavior in their accounts, bad customer service, lack of more deposit options than just mobile, not being able to cash a check, long wait times to receive the debit card, checks being rejected multiple times, and delays in transferring funds for large purchases.
Needs Better Feedback from Business Bank Customers
Novo has a too-close-for-comfort mix of positive and negative reviews, and no cash deposits. Also, with the exception of the Better Business Bureau complaints, Novo doesn't seem to be responding to complaints. We recommend you proceed with caution if you choose to bank with Novo.
The answer to this question depends on a lot of factors. How mature is your business in terms of growth and revenue? How do your customers pay you? How do you pay your vendors? Do you expect to earn interest on the money you hold in your checking account? Can you afford to pay fees on transactions?
Access to cashflow is a big part of running your business. Without cashflow, you can't operate. So being able to deposit or withdraw money quickly, with the least amount of hassle, will partly determine whether you're successful in your entrepreneurial endeavors. For example, if you can't make payroll happen in the timeframe your employees expect, they will complain or even quit. Or, if you can't pay your bills on time, you'll be assessed fees and fines that put a dent in your bottom line.
When looking for a business bank account, you will want as many convenience options as you can find. You want a bank that works for you and improves your financial success, not one that makes you feel like you are working for the bank and that they keep taking your money.
We've broken down this review of business banking into several key criteria to compare between options. Not every bank has every option available, but these are among the most common we've found:
TopConsumerReviews.com has reviewed and ranked the most popular providers of business bank accounts available today. We hope this information helps you choose a bank that will make it easy and affordable to manage your money!
Select any 2 Business Bank Accounts to compare them head to head
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