BlueVine vs Novo Business Checking Account: Which is Better?

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The Credit Review
September 9, 2022
BlueVine vs Novo Business Checking Account: Which is Better?

BlueVine vs Novo Business checking Account: Which is better?

BlueVine and Novo are two popular online business banks. If you own a company, you may want to compare BlueVine vs. Novo to determine which is a better fit for your business.

Both companies are online business banks that offer a variety of tools and perks that make managing your company’s finances easier. Like most online banks, the drawback is that it can be hard to deal with cash, but online companies and those who don’t use much cash should definitely consider BlueVine and Novo.

BlueVine vs. Novo Business Checking Accounts Overview

Before you start looking at the nuts and bolts of BlueVine vs. Novo’s business checking accounts, it’s a good idea to learn more about each company. Understanding their history can give you an idea of the types of businesses they’re looking to serve.

BlueVine was founded in 2013 in Redwood City, California. It primarily aims to serve small and medium-sized businesses. Since 2018, the bank has grown, receiving significant funding from major venture capital firms.

Novo is the newer bank having started in 2013 in New York. The company also seeks to serve small and medium-sized businesses.

Both banks offer additional business banking services beyond just checking accounts.

BlueVine Services and Features

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  • Business checking
  • Business lending
  • Bill payment
  • Quickbooks integrations
  • Interest checking

Novo Services and Features

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  • Business checking
  • Virtual business debit card
  • Invoicing tools
  • Set aside money with Reserve accounts
  • Integrates with many business apps, like Stripe and Quickbooks
  • Bill payment
  • Discounts on business services

BlueVine vs. Novo Business Checking: Features

When comparing BlueVine and Novo, you should think about which checking account will be best for your company. However, it’s also important to think about whether BlueVine or Novo offers other services that could be useful.

BlueVine Features

BlueVine offers many useful features as part of its business checking account.

_Interest Checking _

One potentially valuable perk of BlueVine is that it lets its business customers earn interest on their checking account balances. At the time of writing, you can earn 1.5% interest on balances up to $100,000, which is worth as much as $1,500 per year.

To earn the interest, your company must spend $500 on its debit card or receive $2,500 in customer payments each month. These requirements are both relatively easy to meet, meaning you should have little trouble earning the interest.

_Bill Payment _

BlueVine has an easy bill payment utility that lets you send ACH, wire, and check payments to customers from a convenient dashboard. You can even use a business credit card to send these payments, giving you the chance to earn rewards.

The tool lets you track all of your bills in one place and set up automated payments, making it easy to ensure you pay vendors on time.

Quickbooks Integration

BlueVine’s checking account integrates with the popular bookkeeping and accounting tool Quickbooks. You can easily track your company’s income and expenses using Quickbooks, which makes managing your books much simpler.

Business Lending

If you need some extra cash to keep your business running or to help expand, BlueVine allows its checking customers to open a business line of credit. You can borrow up to $250,000 with interest rates under 5%, giving your business essential funding.

Novo Features

Novo, like BlueVine, also offers many powerful features for its checking account.

Virtual Business Debit Card

When you sign up for Novo you’ll receive a virtual business debit card that you can use immediately, rather than having to wait for a physical debit card. It also links with digital wallets like Apple Pay or Google Pay so you can easily spend money while on the go.

Invoicing Tools

Novo has a built-in invoicing tool that helps you send and track your invoices. There’s no fee to create and send invoices and you can connect apps like Stripe, Square, or PayPal to receive payment. There’s also an option to accept ACH and check payments to save on fees.

Set Aside Money with Reserve Accounts

With your Novo checking account, you can set up a maximum of five Reserve accounts that you can use to help with budgeting. For example, you can use a Reserve account to set aside cash for taxes and another to save for payroll. You can move money between Reserve accounts instantly and have deposits split between them automatically.

App Integrations

Novo integrates with dozens of popular business apps to make running your company even easier. Some of the integrations available include:

  • Stripe
  • Square
  • Shopify
  • WooCommerce
  • Quickbooks
  • Slack
  • Etsy
  • eBay

Bill Payment

Novo makes it easy to send payments to other companies in the US and around the globe. You get unlimited free ACH and paper checks within the US and can send international wire transfers through a partner service.

Discounts on Business Services

Novo business checking customers get discounts on many popular business services, including:

  • Stripe
  • Google Cloud
  • Google Ads
  • Usto
  • Hubspot
  • Quickbooks

Novo claims that the total savings available exceed $5,000.

BlueVine vs. Novo Business Checking Accounts Comparison

Novo and BlueVine both offer great features and perks in addition to their checking accounts, but it’s important to actually look at the basics of each checking account to see whether it’s a good fit for your business.

BlueVine

  • Best for: Companies that need to make cash deposits or that want to earn interest on their balance
  • Minimum deposit: None
  • Monthly fee: None
  • Requirements to avoid monthly fee: N/A
  • Other fees:
    • Two fee-free, paper checkbooks per year
    • 2.9% credit card bill payment fee
    • $15 outgoing wire transfer fee
    • $4.95 per cash deposit
    • $2.50 out-of-network ATM fee
  • Other features:
    • Make cash deposits
    • Earn interest

Novo

  • Best for: Companies that want an almost completely fee-free experience or that can benefit from app integrations and discounts
  • Minimum deposit: $50
  • Monthly fee: None
  • Requirements to avoid monthly fee: N/A
  • Other fees:
    • $27 insufficient funds charge fee
    • $27 uncollected funds returned fee
  • Other features:
    • Reserve accounts

Both BlueVine and Novo offer fee-free checking accounts. However, BlueVine does charge a few fees that Novo does not, such as a fee for outgoing wire transfers.

What sets BlueVine apart from Novo is that it accepts cash deposits and it offers interest on your checking account balance. Cash deposits do come with a fee, but Novo has no way to accept cash deposits short of you buying a money order and depositing it to your account.

Overall, both checking accounts are a great choice if you’re simply looking for a functional business checking account. To really figure out which is right for you, you’ll have to consider the other features and perks Novo and BlueVine offer.

Why Choose BlueVine Business Checking?

There are plenty of reasons for a company to choose BlueVine over Novo.

You want to earn interest

Most checking accounts don’t offer interest. This is true for both personal and business checking accounts.

This usually isn’t a big deal for individuals because most people don’t carry large balances in their checking accounts. However, companies can easily have tens of thousands of dollars in their checking account. Earning interest on the balance can be a big deal.

BlueVine pays interest on checking balances up to $100,000 if you meet one of a few easy-to-satisfy requirements. That can help your business’s cash go a bit further.

You need to make cash deposits

Novo and BlueVine are both online banks, which means that cash-heavy companies will likely want to look elsewhere. However, BlueVine offers a convenient way to deposit cash through a partnership with Green Dot.

You can make cash deposits to your BlueVine account at any Green Dot location, though you’ll have to pay a $4.95 fee per deposit. A per-deposit fee isn’t a great deal, but if your company occasionally has to deposit cash, this can be useful.

Your company needs a line of credit

BlueVine offers business lending services, primarily in the form of a line of credit for up to $250,000. There are lots of reasons to do your banking and borrowing with the same company, including the simple convenience of having all your finances in one place.

Novo does not offer loans, so if you think your company can benefit from a line of credit, BlueVine is a good choice.

Why Choose Novo Business Checking?

Novo also gives business owners plenty of reasons to open an account.

You want to easily send invoices

Invoicing is an essential activity for any business that wants to keep operating. You need to send invoices if you want to get paid.

Novo offers a built-in invoicing tool that makes it easy to track your invoices and payments you receive. You can even set up ACH and check payments to avoid fees when accepting payment from your customers.

You use many business apps

Novo integrates with all sorts of popular business apps, from communications tools like Slack to ecommerce apps like WooCommerce or payment tools like Stripe.

If you’re a high-tech company that uses a lot of apps, Novo can easily integrate with all of them and let you view all of your business’s data on one dashboard.

You use services where Novo offers a discount

Novo gives customers discounts worth hundreds or thousands of dollars for popular business tools and services like Google Ads. If your company is already using one of these tools, banking with Novo can help you save a lot of money.

Bottom Line

Both BlueVine and Novo are great business banks for companies that operate primarily online or that don’t deal with cash very frequently. If you expect to carry a large balance in your account, the interest you can earn with BlueVine is a huge perk but the discounts Novo offers could save you even more money.

Before opening any business checking account, make sure to consider your options, analyze their pros and cons, and consider how your decision will impact your business.

Frequently Asked Questions

It can be hard to choose between BlueVine and Novo, so make sure you understand the specifics of each account before you choose a bank.

Which is better: BlueVine or Novo?

There isn’t a single answer to whether BlueVine or Novo is better. Both have pros and cons.

Thanks to paying interest on balances up to $100,000, BlueVine could be a great choice for companies with large cash reserves. On the other hand, Novo’s discounts on business services can help startups save a lot of money.

Is BlueVine legit?

Yes, BlueVine is legit. It’s a real bank that offers online business checking accounts. It has full insurance from the Federal Deposit Insurance Corporation and offers legitimate business loans. During the Covid-19 pandemic it even worked with the United States government to offer Paycheck Protection Program loans.