June 23, 2022

Is Novo Safe and Legit

Read more about Novo
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Novo is a platform offering banking services for small businesses and freelancers. But is it safe and legit? Read on to find out.

Novo aims to make banking easier. They offer fully online, mobile banking services designed for small business owners.

But is Novo actually reliable?

In this guide, find out if Novo is safe and legit, and whether it's right for your banking needs.

Is Novo Secure?

Wary of switching to a fintech company like Novo? You'll be pleased to learn that Novo isn't operating alone.

While Novo provides the tech side of this financial platform, the banking itself is carried out in partnership with Middlesex Federal Savings. This is an FDIC-insured traditional bank offering online services and based in Massachusetts.[1]

This means that all of your deposits with Novo are protected by the same FDIC insurance that Middlesex Federal accounts get. You'll be covered by the federal government in case of theft or failure of the bank, or even if Novo itself is disrupted.

As for their own security, Novo uses bank-level encryption that is standard in the industry in order to keep your money safe.[2]

While Novo requires some personal info in compliance with federal regulations such as KYC (know your customer), that information is protected under their privacy policy.

In the unlikely event that your Novo account does get hacked, they recommend you get in touch with their support team, where they'll help you sort out your trouble.

How Does Novo Work?

Novo isn't a bank. It's a fintech company that partners with Middlesex Federal Savings to offer a modern take on banking services. Novo caters to small business owners, freelancers, and startups.

Novo is a purely digital platform, operating online and through apps available on the App Store and Google Play Store.

Their main offering is a small business checking account that offers a range of useful features, including free ACH bank transfers, free unlimited checks, mobile check deposits, and more—all with no monthly fee or minimum balance requirements.

Signing up for a Novo account is easy, and can be done online or on your phone in just 10 minutes. To sign up, you'll need to provide some personal information as well as information about your business.

What Does Novo Charge?

When it comes to fees, Novo is pretty light. While there is a $50 minimum deposit to open a Novo business checking account, there is no minimum account balance, no monthly or annual fee, and no fee for closing your account early.[3]

All ACH bank transfers are free, as are incoming wire transfers, both international and domestic.

All in all, the only fees you'll have to watch out for with Novo are:[4]

  • Insufficient Funds Charge: $27
  • Uncollected Funds Returned Fee: $27

Novo Features

So what does a modern approach to small business banking mean exactly? We'll find out by taking a detailed look at the numerous features and perks that Novo has to offer its users.

Novo Business Bank Account
Novo's primary offering is a free checking account targeted toward business owners. Currently used by over 150,000 small businesses, the Novo account is FDIC-insured thanks to a partnership with Massachusetts-based bank, Middlesex Federal Savings.

You get free access to ACH bank transfers, unlimited free mailed checks, and incoming wire transfers, with no monthly fee, and mobile access through apps available on the App Store or Google Play Store.

It's quick and easy to set up, and users are refunded all ATM fees as part of the package.

Virtual Card
Along with the Novo business checking account comes instant access to a virtual debit card, which means you can start spending online or through services like Apple Pay and Google Pay as soon as you've set up your account.

Invoices
Novo makes it easy to get paid with a built-in invoice management system. Send an unlimited number of personalized invoices to clients, keep track of who has paid and who hasn't, and make sure your cash is flowing smoothly.

Novo also integrates with popular payment processors like Stripe, Square, and PayPal. And since the Novo app accepts ACH bank transfers as well as checks, you're able to get your money sooner.

Novo Reserves
Budgeting can make or break a business, and while keeping track of what money goes where is a vital part of business management, with Novo's Reserves system, it doesn't have to be a time-consuming one.

Set aside funds for taxes, payroll, rent, and other vital expenses with up to 5 Reserves provided through the app, easily transferring money in and out when you need to.

While it's not available yet, Novo is working on the ability to let you automatically allocate income to your Reserves as you get it.

Deposit Checks
If you frequently get paid in checks, don't worry. Depositing checks with Novo is easy. You can deposit physical checks instantly through the Novo app for free, with no limits, just by taking a photo. All it takes is a few seconds.

Send Payments
Being able to pay your suppliers and other business associates when you need to is crucial. Novo makes it easy to send money via ACH bank transfer or physical checks without getting nickel-and-dimed with fees.

Transfers in the U.S. are free and unlimited, and if you need to send money internationally, you can do it via Wise.

Stripe Integration
Payment processing is a big deal for many business owners, and as a verified partner with Stripe, Novo can make it a little bit easier on you.

Stripe is integrated into the Novo app, allowing you to see your balances wherever you are, and they offer $20,000 in free processing when you sign up.

While the feature isn't available yet, Novo users will soon be able to receive Stripe payments instantly.

Novo Debit Card
For when you're out in the world, Novo provides an EMV chip-protected debit card in partnership with Mastercard. Novo will refund the fees for all of your ATM withdrawals, and provide notifications regarding your transactions.

Novo App Marketplace
Novo offers a range of app integrations through their app marketplace. Connect your business platforms like Shopify, Amazon, eBay, and Etsy, as well as accounting and bookkeeping apps like QuickBooks and payment processors like Stripe and Square.

App integrations make sure that you can manage your money easily in one place.

Bottom Line

Overall, Novo is a solid choice for small businesses and freelancers who are looking for a digital platform to take care of their banking needs. Thanks to their partnership with Middlesex Federal Savings, you can rest easy knowing that your money is in safe hands.

Novo is a safe and legit option for business checking, and provides a range of useful features that will make managing your finances quick and easy, all with no costly fees.

References

Novo

Free Business Checking

  • $0 monthly service fee
  • $50 deposit to unlock all features
  • Unlimited ATM fee rebates
Banking services provided by Middlesex Federal Savings F.A., Member FDIC
Bluevine

Business Checking - Up to 1.5% APY

  • 1.5% APY on your balance up to $100,000 for customers that meet monthly eligibility requirements
  • $0 minimum opening deposit
  • $0 monthly service fee
Banking services provided by Coastal Community Bank, Member FDIC
Lili

Free Checking Account for Sole Proprietors and Single-Member LLC

  • $0 monthly service fees
  • $0 minimum opening deposit
  • No minimum balance requirement
  • No foreign exchange fee
  • Get direct deposits up to 2 days earlier
Banking services provided by Choice Financial Group, Member FDIC
Axos Bank
Member FDIC

Rewards Checking - Up to 1.25% APY

  • Up to 1.25% APY
  • Zero monthly maintenance fees
  • Zero overdraft or NSF fees
  • Zero minimum monthly balance reqs
  • Unlimited domestic ATM fee reimbursements
  • Online debit card management
  • Simple, 3-step process for direct deposit
  • Only $50 to open an account

Jeremy Harshman is a creative assistant at CreditDonkey, a credit card comparison and reviews website. Write to Jeremy Harshman at jeremy.harshman@creditdonkey.com. Follow us on Twitter and Facebook for our latest posts.

Note: This website is made possible through financial relationships with some of the products and services mentioned on this site. We may receive compensation if you shop through links in our content. You do not have to use our links, but you help support CreditDonkey if you do.

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