Novo Bank vs Axos Business Checking Account

January 13, 2023 Business Banking
Novo Bank vs Axos Business Checking Account

Novo Bank vs Axos Business Checking Account

Choosing Novo vs. Axos can be a difficult decision for businesses looking for an online checking account. Both companies offer a competitive checking account and a variety of other business services that can benefit your company.

We’ll break down what you need to know to choose between Novo and Axos Business checking.

Novo vs. Axos Business Checking Accounts Overview

Before you dive in and start comparing the nuts and bolts of each bank and their checking accounts, it’s good to know a bit more about the businesses you could be working with.

Novo was founded in 2013 in New York and focuses primarily on serving small and medium-sized businesses.

Axos is the older bank. It was founded in 1999 as Bank of Internet USA. On top of its business checking offerings, it also offers personal banking services.

Novo Services and Features Axos Services and Features
Business checking Business checking
Virtual business debit card Business savings
Invoicing tools Merchant services
Set aside money with Reserve accounts Payroll services
Integrates with many business apps like Stripe and Quickbooks SBA loans
Bill payment Interest checking available
Discounts on business services N/A

Novo vs. Axos Business Checking Accounts Comparison

Both Novo and Axos offer a great business checking experience. Before you select one or the other, it’s important to compare the basic fees and features to make sure the account you choose fits the needs of your business.

Novo Axos
Best for Companies that want an almost completely fee-free experience or that can benefit from app integrations and discounts Companies that want a wider variety of business services
Minimum deposit $50 None
Monthly fee None None
Requirements to avoid monthly fee N/A N/A
Other fees $27 insufficient funds fee, $27 uncollected funds returned fee One fee-free checkbook
Other features Reserve accounts Unlimited domestic ATM fee reimbursements, Interest-bearing account available

In general, Novo has the benefit of integrating with many popular business applications, such as QuickBooks, Stripe, Slack, or WooCommerce. That makes it a great fit for online companies that rely on these apps to conduct their everyday business.

While Novo operates more like a fintech company, Axos operates more like a typical bank. On top of its business checking services, it offers things like savings accounts, merchant services, payroll tools, and the like. That may make Novo more appealing to companies who do business in-person or who want a more traditional banking experience.

Why Choose Novo Business Checking?

There are many reasons a business owner might choose Novo business checking.

You want to easily send invoices

One of the most important things for any business to be able to do is send invoices. Without invoices, you can’t get paid for the goods and services you sell.

Novo has a built-in invoicing tool that makes it easy to send and track invoices from a single dashboard. Thanks to Novo’s integrations, you can accept payment through a variety of services, such as PayPal or Stripe. Novo also lets you request ACH payments to avoid the fees charged by other services.

You use many business apps

One of Novo’s top features is that it integrates with dozens of popular business applications, such as Slack, WooCommerce, PayPal, and Stripe.

Usually, you need to go to each app’s website individually to check transaction details or make changes. With Novo, you can view everything you need from your account dashboard, making it much easier to use all of these popular services.

You use services where Novo offers a discount

Novo offers its account holders discounts on many business services, including some of the services that it integrates with. The bank claims that businesses can save more than $5,000 with these discounts. If you already use the services that Novo offers discounts on, that can be a huge savings for your company.

Why Choose Axos Business Checking?

Axos is a more traditional bank than Novo and offers a few perks due to that fact.

You want business services

Axos offers many business services on top of its business checking account.

For example, Axos has merchant services that can provide your company with point-of-sale equipment and other ways to accept payments from customers.

You can also work with Axos to handle your company’s payroll, which can be a headache for small business owners who are starting to hire their first employees.

You want access to loans

Axos partners with a Small Business Administration lender to help its banking customers get access to SBA loans. That includes help with both applying and ensuring they qualify for SBA funding.

SBA loans can give small and medium-sized companies loans as large as $5 million or more, making them a fantastic tool for businesses looking to expand.

Novo doesn’t offer lending services, so you’ll want to stick with Axos if you plan to borrow money to grow your company.

You need to make cash withdrawals

Sometimes, you need cash to make purchases for your company, offer refunds to customers, or for other purposes. Axos makes it easy to withdraw cash at any ATM in the United States by offering unlimited fee reimbursements for ATM withdrawal fees.

You have a lot of cash to keep in the account

Axos offers both interest checking and a business savings account. If you have a lot of cash to keep in your business bank account, Axos can help you grow your balance with monthly interest payments.

Bottom Line

Both Novo and Axos are great options if you own a small business and want to open a checking account for your company. While either will get the job done, choosing the right bank for your business will make the account even more useful.

If you use lots of business applications, consider opening an account with Novo. Businesses that want access to lending or help with merchant or payroll services should consider opening an account at Axos.

Before you open an account with either bank, it’s essential to consider all of your business bank account options, along with the pros and cons of each. That will help you choose the best checking account for your business.

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Frequently Asked Questions

Is Axos a reliable bank?

Yes, Axos is a reliable bank. It’s been around for more than two decades and offers a variety of tools and services to its customers.

Novo bank vs Axos: which is more legit?

Both Novo and Axos are legitimate banks that you should feel safe working with. They have proven track records and both offer FDIC insurance for their business checking accounts.

About The Author

TJ Porter avatar

TJ Porter

Freelance Personal Finance Writer

TJ Porter is a Boston-based freelance writer who specializes in bank accounts, credit, and credit cards. He’s written for Bankrate, Credit Karma, MoneyCrashers, DollarSprout and My Bank Tracker, among others. In his spare time, TJ enjoys cooking, soccer, reading, and video games. You can connect with him on his website, tjporterwriting.com.


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