If you’re self-employed or a small business owner, it’s important to keep your personal and business bank accounts separate. At the same time, not all personal checking accounts allow individuals to receive business income. That’s why even 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.
Bank Novo offers a free business checking account with no hidden fees, 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 owners of all kinds, 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.
Bank Novo’s business checking account is a free checking account 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 entirely 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 Bank Novo’s business checking account work?
It’s quick and easy to sign up for an account through Bank Novo. Just navigate to their website and click the “Get Started” button on their home page.
Next, you’ll need to provide a business email address and unique password to apply for an account.
Keep in mind that Bank Novo isn’t able to serve some businesses. These include businesses involved with cryptocurrency and money services, privately owned ATMs, marijuana, and gambling. You should make sure that your business doesn’t fall within any of these categories before you apply.
Next, you’ll need to fill out some personal and business details, including your name, birthday, address, and social security number. You’ll also need to indicate your business type.
Bank Novo 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 transfer, incoming electronic transfers, incoming wire transfers, and outgoing wire transfers, and international business transactions.
You’ll also need to provide a picture of either your U.S. Driver’s Licence or passport to verify your identity.
The next step is to review all of your information to make sure it’s correct, then submit your application to Bank Novo. They’ll review your information and reach out in about one to two business days to let you know their decision.
How much does Bank Novo cost?
Bank Novo is free to use, with no monthly maintenance fees, minimum balance fees, incoming or outgoing ACH fees, or incoming domestic or international wire fees. They do require a minimum of $50 to open an account. They also charge an insufficient funds fee of $27, and an uncollected funds return fee of $27.
Bank Novo business checking account features
Bank Novo comes with plenty of features designed to help small business owners and freelancers better manage their finances.
Online mobile banking
Bank Novo allows you to manage your finances on the go in one handy mobile app. You can make payments, receive payments, and connect to business tools like Stripe and Quickbooks. You can also view your accounts balance in the app, and review recent activity and top spending categories.
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, Bank Novo 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. Bank Novo lets you easily send and track invoices, and has multiple options for you to receive payments. You can accept debit 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 just want to keep some cash in reserve. You can instantly move funds into and out of reserves. While it’s not yet available, Bank Novo is also working on a feature that would automatically allocate income to selected reserves, making it easy to save up for big purchases or put money aside for tax day automatically.
Free and easy transfers
You can transfer money into and out of a Bank Novo account, whether you’re transferring income to your account or you need to make a transfer to some other account. There’s no minimum balance requirement, and even link bank accounts for fast, easy transfers.
No need to drive to the nearest bank branch or ATM to deposit a check - you can do it right from your phone. Bank Novo offers unlimited free 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
Bank Novo 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 right in your account, receive your Stripe payouts instantly, and even get $20,000 in fee-free processing when you sign up for Stripe.
Whether you do business internationally or just like to travel, Bank Novo is accepted worldwide. The card is EMV chip protected and you can withdraw money anywhere and get refunded on any ATM fees.
Other app integrations
Bank Novo integrates with many different popular business tools and apps. In addition to Stripe, these include Shopify, Quickbooks, Slack, Xero, Wise, and Zapier, just to name a few. Account-holders can also take advantage of perks and benefits from partners like HubSpot, Google Ads, and Booking.com.
Who is Bank Novo best for?
Bank Novo is a great choice for many different kinds of business owners.
Whether you’re 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, but it’s an important step to keep from muddying the waters between your business and personal finances. Bank Novo is free, easy to use, and comes with plenty of extra perks.
Small business owners
If you own a small business, Bank Novo’s integrations with popular business tools like Stripe and Quickbooks can save you time and money. The bank also makes it easy to send invoices and receive payments from clients and customers.
Whether you’re an established entrepreneur or are just starting, Bank Novo is a good option for a business bank account. The bank also comes with free perks and discounts from partners like Google Ads and GoDaddy to help your business ventures grow.
Who shouldn’t use Bank Novo?
While Bank Novo 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 who have a side hustle, freelance, work as contractors, or are self-employed. That said, if you don’t own a business, a bank account from Bank Novo probably isn’t right for you.
People who want a brick and mortar bank
Since Bank Novo is online, there’s no way to visit a physical bank branch. This may be a dealbreaker for people who prefer to do their banking in person.
Pros & cons of Bank Novo
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.
Low fees: Bank Novo doesn’t charge any ATM fees, 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.
No personal accounts: Bank Novo only offers business checking accounts at this time.
Can’t deposit cash: There’s no option to deposit cash to your Bank Novo account.
Doesn’t earn interest: Unlike some other business bank accounts, an account with Bank Novo doesn’t earn interest.
Bank Novo vs. competitors
1% up to $100,000
BlueVine is one of Bank Novo’s main competitors when it comes to free online business bank accounts. Like Bank Novo, 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 1% APY on balances of up to $100,000.
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. While the standard account is free to use and has a $0 minimum, users can earn additional perks from the Mercury Tea Room if they have over $250,000 in deposits.
Are Bank Novo 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 Bank Novo free to use?
It’s free to open an account with Bank Novo, and there are no monthly maintenance fees or minimum balance requirements. You do need to have a $50 initial deposit.
Does Bank Novo integrate with Zelle?
Unfortunately, Bank Novo 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.
The bottom line
If you’re a small business owner, freelancer, or entrepreneur, then Bank Novo is a great option for a business bank account. It’s free to open an account, and the application process takes just a few minutes. There are no monthly maintenance fees, ATM fees, or minimum deposit requirements. You can check your balance, send and receive payments, and manage your finances all through one handy mobile app.
Bank Novo also comes with plenty of integrations with business tools and apps that help you save time and money. These include Stripe, Quickbooks, Shopify, Slack, Wise, and more. You can easily send invoices and receive payments from customers and clients. Bank Novo even lets you set aside money for taxes and other big expenses throughout the year. Overall, it’s a good choice for a business bank account, whether you’re an established business or just starting.
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