If you run a particularly small business – as a freelance writer, solo practitioner, or even upstart – and are looking for a friendly bank that specializes in small businesses, you might want to look into Bank Novo. It can be difficult for a very small business to deal with a large bank, as large banks tend to prefer large companies. But if that doesn’t describe your operation, Bank Novo is a user-friendly online bank that wants your small business. And best of all, it is a bank with very little cost to reduce your profits.
About Bank Novo
Novo Bank is a limited service bank, designed specifically for small businesses and freelancers. In fact, the motto of the bank is “customer first bank for the modern entrepreneur”. It’s a fully digital New York-based bank, with a simple, user-friendly product menu.
Bank Novo is an independent technology company in partnership with Federal Savings Middlesex, a full-service bank based in Massachusetts.
Due to its simple and focused business model, Bank Novo’s services are very easy to use. They even rely on third party partners to provide some business services. The basic concept is to streamline the banking process to make it as comfortable as possible for small independent businesses.
And because of the simple business model, the bank is extremely light on bank fees. If you’re a freelance writer or a small business, the last thing you need is a bunch of fees that lower your bottom line.
Bank Novo works primarily as a mobile banking application. It gets 4.5 out of 5 stars in the App Store, but doesn’t have a rating on Google Play.
Related: 6 Best Mobile Banking Apps
Accounts available at Bank Novo
Bank Novo offers only one type of account: a free professional current account. The account only requires a small minimum balance to open, then no minimum monthly balance requirement and no monthly fees. It also means no hidden costs.
The business checking account can be used to transfer funds, send checks, and accept incoming transfers. And even if Bank Novo does not have its own ATM network, all ATM fees charged by other banks will be refunded.
Some of the features that come with the Bank Novo free business checking account include:
Minimum initial deposit. There is a minimum requirement of $ 50 to open an account, after which there is no minimum account balance required.
Make mobile deposits. You can make deposits to your account by taking a photo of the check and uploading it to your account.
Send and receive international money transfers with TransferWise. Transfer Australian, Japanese, Mexican, Swedish, Swiss, Indian, British and Canadian currencies as well as Euros using the TransferWise digital transfer service without paying significant transaction fees.
Accept foreign checks. If you have international customers who pay you by check, those checks can be deposited using mobile check deposit through your mobile banking app.
Connect your account to digital wallets. You can connect PayPal, Venmo, Google Pay and Apple Pay to your checking account.
Bank Novo integrates with Xero. Connect your bank account to your Xero account and your transactions will be automatically logged every hour and reconciled to your Xero account. Xero is a global accounting software serving over 1.8 million subscribers in over 180 countries
Paper checks. Like many online banks, Bank Novo does not offer paper checks. However, they do offer free ACH transfers and you can have physical checks processed and sent right from the app.
Related: the Best business chequing accounts
Novo Mastercard Business debit card
Your business current account is provided with the Bank Novo Mastercard Business debit card. The card can be used anywhere Mastercard is accepted, i.e. almost anywhere in the world.
You can also use the card at ATMs. Bank Novo does not charge any ATM fees for using the card. And even if the bank does not participate in an ATM network, you will benefit from an unlimited reimbursement of the fees charged by other banks for the use of their machines.
The maximum daily ATM withdrawal limit is $ 1,000.
Learn more: Best Small Business Credit Cards
Bank Novo deposit products
The Bank does not offer interest-bearing deposit accounts.
Alternative to Novo bank: First Internet bank
Features of Bank Novo
Bank Novo mobile application
It is the main operating platform of the bank. The app can be downloaded from Google Play for Android 5.0 and later devices, and the App Store for iOS, 11.0 and later devices. It is compatible with iPhone, iPad and iPod touch.
Benefits of Bank Novo
As a Bank Novo customer, you will benefit from discounts and credits offered by third party providers. The list of suppliers includes the following:
For example, you can get the $ 3,000 in credits for services purchased through Google Cloud. These services include data management, application modernization, intelligent analytics, artificial intelligence, security, productivity and collaboration.
Bank Novo provides live customer support. They can be contacted directly through the app or by email during normal business hours. When you make contact, you will receive a response in less than 60 minutes.
All Bank Novo accounts are FDIC insured for a maximum of $ 250,000 per depositor, through the company’s partner bank, Middlesex Federal Savings.
Bank Novo also employs a dedicated security team and bank-grade encryption to ensure that your personal information is protected 24 hours a day. Meanwhile, your Mastercard debit card is protected by EMV technology, making counterfeiting impossible. from the menu.
Bank Novo loan programs
As a non-traditional bank, Bank Novo does not offer any loan programs.
Learn more: Best Small Business Loans
Novo bank charges
One of the most compelling features of Bank Novo is that it only has one fee – $ 27 for insufficient funds or returned deposited items. And even these fees are lower than what is usually charged by other banks. Otherwise, there are no monthly service fees, no transaction fees, and no wire transfer fees, whether foreign or domestic.
How to open an account with Bank Novo
To open an account, you must be a business owner. You will need to have one of the following types of business organization:
- Individual business
- Limited Liability Company (LLC)
- Global partnership
- Non-profit organisation
You can open an account with Bank Novo fully online. One of the main advantages of applying to the bank is that your credit history during no credit check in the process. To be eligible, you must be a U.S. citizen or legally reside in the United States and operate a United States-based business. However, an exception is if you have a business partner who lives outside of the United States, they will be seen with a copy of their passport.
Other information required for an application includes:
- A valid social security number. You can also apply for an account with an Employer Identification Number (EIN).
- Address in the United States
- US cell phone number
- Professional email address
Business documents will also be required, but the specific requirements will depend on your state of residence, as well as legal entity status. For example, the requirements will be different for a sole proprietorship, corporation, partnership, non-profit organization, or LLC. In each case, specific documentation relating to your type of business and national regulations will be requested directly by the Bank.
Be aware that Bank Novo will not accept a business verification relationship if your business involves cryptocurrencies, private ATMs, marijuana or cannabis, gambling, crowdfunding, or money services.
If you want to fund your account using a check, you can either deposit it using the Bank Novo app or send a paper check to the bank. You can also fund your account by wire transfer from an external bank account, Venmo, or PayPal, but not with a debit card.
The required sales documentation can be downloaded with your application. Bank Novo supports pdf, jpg, jpeg and png file formats.
Learn more: How to open a corporate bank account
Bank Novo FAQ
Bank Novo has been specially designed for small business accounts. In order to keep costs virtually non-existent, they do not offer services commonly provided by traditional banks, such as personal accounts, paid deposit accounts, or loan products. Streamlining the bank’s operations allows it to keep costs low.
Bank Novo is a relatively new bank and is currently working to attract small business customers with their very low fee structure and account simplicity. However, they plan to add services in the future, including lending services and integration with third-party service providers. It is primarily designed to serve very small businesses and start-ups, which can grow with the bank.
Yes, the debit card can be used worldwide, in addition to anywhere in the United States.