Finding the right banking partner is crucial for your enterprise’s smooth operation and growth. With the myriad of options available, it’s easy to get lost. However, Novo is a beacon for business owners seeking a modern, efficient, and user-friendly banking solution. This blog will discuss Novo, its pros and cons, accessibility features, account requirements, and more to help you decide if it fits your business in 2024.
What is Novo?
Novo is a digital-first banking platform for the modern entrepreneur. Unlike traditional banks, Novo focuses on providing a seamless online banking experience, integrating with other digital tools that businesses use daily. It’s important to note that while Novo is not a bank, it partners with Middlesex Federal Savings, F.A., to offer FDIC-insured deposit accounts to its users.
Novo’s Pros and Cons
Like any banking service, Novo has its advantages and disadvantages. Here’s a rundown to help you weigh your options:
Pros:
- No Hidden Fees: Starting in 2024, Novo will eliminate monthly fees and minimum balance requirements. It also offers reimbursement for ATM fees, up to $7 monthly.
- Built-in Security: Your deposits are protected with FDIC insurance up to $250,000, and your account always benefits from bank-grade encryption.
- Easy Integration: Novo seamlessly integrates with essential online platforms like QuickBooks, Shopify, Xero, and Stripe, simplifying your financial operations.
- Mobile Banking: Novo’s mobile app is designed for entrepreneurs on the move. It allows you to manage your finances anytime, anywhere.
Cons:
- Limited Physical Presence: Being a digital-first platform, if you prefer in-person banking, Novo might not suit your needs.
- No Savings or Loan Products: Currently, Novo offers only checking accounts, which might be a limitation for businesses looking for a one-stop banking solution.
Novo Access on the Go
One of Novo’s standout features is its mobile app, designed for the on-the-go entrepreneur. The app allows you to make transfers, deposit checks, and manage your account from anywhere, giving you complete control over your business finances without needing a physical bank.
Novo Business Account Requirements
To open a Novo business checking account, you’ll need a few things:
- A Social Security number (for sole proprietors) or an EIN (for corporations or partnerships).
- A U.S. address.
- A U.S. cell phone number.
Almost any U.S.-based business can qualify for a Novo account, including sole proprietorships, LLCs, corporations, general partnerships, and nonprofit organizations.
Novo Business Checking is Best for Business Owners Who:
- They prefer digital banking solutions and value the convenience of managing their business finances online.
- Use or plan to integrate their banking with other digital business tools.
- Looking for a straightforward, fee-free banking experience.
Does a Sole Proprietorship Need a Business Account?
While not legally required, it’s highly recommended that sole proprietors separate their personal and business finances. A dedicated business account like Novo’s can help them manage their finances more efficiently and is beneficial for tax and legal purposes.
Overview
Novo is redefining business banking for the modern entrepreneur. Its digital-first approach, integration capabilities, and transparent fee structure make it an attractive option for business owners. While it may not suit those looking for a traditional banking relationship or a broader range of financial products, its convenience, technology, and service strengths offer compelling reasons to consider Novo as your business banking partner in 2024.
Want to start your business banking with Novo?
It’s easy and quick, perfect for any business ready to level up.
Are you interested in seeing Novo in action? Watch our “Novo Review: Best Business Banking Account for 2024?” video on YouTube for an in-depth walkthrough of Novo’s features and services. Discover firsthand why Novo might be the perfect banking partner for your business this year.
Frequently Asked Questions (FAQs)
Is Novo a bank?
No, Novo is not a bank. It’s a mobile banking platform that, through its partnership with Middlesex Federal Savings, F.A., provides FDIC-insured deposit accounts.
Is Novo FDIC insured?
Yes, deposit accounts at Novo are FDIC-insured up to $250,000 per depositor for each account ownership category through Middlesex Federal Savings, F.A. (FDIC #28368).
Who can qualify for a Novo account?
Almost any business operating in the U.S. can qualify for a Novo business checking account, including sole proprietors, LLCs, corporations, general partnerships, and nonprofit organizations.
Which businesses are eligible for a Novo business checking account?
Businesses registered in the U.S., including sole proprietorships, LLCs, corporations, general partnerships, and nonprofit organizations, are eligible for a Novo business checking account.
Which businesses or industries does Novo restrict from opening an account?
Novo does not support businesses engaged in cannabis sales, cryptocurrency (providing or exchanging cryptocurrency), money services, privately owned ATMs, Series LLCs, or similar companies. Novo is carving out a niche for itself in the business banking sector. It offers a compelling mix of modern banking conveniences with the backing of traditional financial security through FDIC insurance. Its approach caters to the needs of today’s entrepreneurs, making it a noteworthy contender for the best business banking account in 2024.
