Novo Bank Fees Overview
Novo Bank is a digital-first bank designed to serve small business owners, offering a suite of business banking services like checking accounts, invoicing tools, and integrations with accounting software. Novo is known for its minimal fee structure, which makes it a popular option for entrepreneurs looking for a streamlined, cost-effective banking solution. Below is an extensive overview of the fees associated with Novo Bank.
1. Account Opening and Maintenance Fees
Novo Bank has a straightforward, fee-free approach for its business banking accounts.
A. Account Opening Fees
Cost: Free.
B. Monthly Maintenance Fees
Business Checking Account
Cost: Free.
Novo Bank does not charge a monthly maintenance fee for its business checking accounts, which is a significant benefit for small business owners looking to minimize operational costs.
Additional Accounts
Cost: Free.
Novo’s additional accounts (e.g., savings accounts or sub-accounts) are also free of charge, with no monthly maintenance fees.
2. Transaction and Withdrawal Fees
Novo offers various banking services related to ATM access, transactions, and other banking features.
A. ATM Withdrawal Fees
ATM Withdrawals (in-network)
Cost: Free at 24,000+ ATMs in the Allpoint network.
Novo customers can withdraw funds for free at over 24,000 ATMs through the Allpoint network, which includes ATMs located in various retail locations such as CVS, Walgreens, and Target.
ATM Withdrawals (out-of-network)
Cost: $2.50 per transaction.
Novo charges a fee of $2.50 per transaction for using ATMs outside of the Allpoint network. Additional fees may apply if the ATM operator charges their own fee.
International ATM Withdrawals
Cost: $2.50 per transaction + third-party ATM fees.
International ATM withdrawals are charged a fee of $2.50 per transaction, in addition to any fees imposed by the ATM operator abroad.
B. Cash Deposit Fees
Novo does not have a built-in cash deposit network, but it offers a workaround through third-party services.
Cash Deposits
Cost: Varies.
Novo does not allow direct cash deposits into accounts; however, you can deposit cash at locations that use the GreenDot network (e.g., Walmart). There is a fee for cash deposits, which typically ranges from $4.95 to $5.95 per deposit depending on the location.
C. Debit Card and Transaction Fees
Debit Card Purchases
Cost: Free.
Making purchases with your Novo debit card is free of charge.
Foreign Transaction Fees
Cost: 1% of the transaction amount.
Novo charges a 1% fee for foreign transactions, including purchases made in foreign currencies or through international merchants.
ACH Transfers (Incoming/Outgoing)
Cost: Free.
ACH transfers to and from your Novo account are free, making it a convenient option for business owners to send and receive payments electronically.
3. Overdraft and Insufficient Funds Fees
Novo does not charge overdraft fees, offering a more transparent approach to managing accounts.
A. Overdraft Fees
Overdraft Protection
Cost: Free.
Novo does not allow overdrafts. If you try to make a purchase or withdrawal that exceeds your balance, the transaction will be declined, but no overdraft fees are applied.
Insufficient Funds Fee
Cost: Free.
Novo does not charge insufficient funds fees. If a payment or transaction exceeds your account balance, it will simply not be processed.
4. Wire Transfer Fees
Novo allows wire transfers for both domestic and international transactions.
A. Domestic Wire Transfer Fees
Incoming Domestic Wire Transfer
Cost: Free.
Novo does not charge for incoming domestic wire transfers.
Outgoing Domestic Wire Transfer
Cost: $25 per transfer.
For outgoing domestic wire transfers, Novo charges a fee of $25 per transfer.
B. International Wire Transfer Fees
Incoming International Wire Transfer
Cost: Free.
Novo does not charge for receiving international wire transfers.
Outgoing International Wire Transfer
Cost: $45 per transfer.
Sending an outgoing international wire transfer incurs a fee of $45 per transaction.
5. Novo Savings and Sub-Accounts Fees
Novo's primary offering is its business checking account, but it also provides features like sub-accounts for saving or categorizing funds.
A. Savings and Sub-Account Fees
Sub-Accounts (for savings or budget organization)
Cost: Free.
Novo offers sub-accounts to help business owners separate funds for savings or specific budget categories. There are no fees for creating or maintaining these sub-accounts.
Monthly Maintenance Fee for Savings Accounts
Cost: Free.
There are no monthly maintenance fees for any of Novo’s savings-related accounts or sub-accounts.
6. Account Closure Fees
Novo does not charge a fee for closing your account.
A. Account Closing Fees
Cost: Free.
Closing your account with Novo is free of charge, and you can do so at any time without incurring any penalties.
7. Miscellaneous Fees
Novo provides several additional banking features that may incur minor fees.
A. Stop Payment Fees
Stop Payment Request
Cost: $30 per request.
If you need to stop a check or ACH transfer, Novo charges a $30 fee per stop payment request.
B. Paper Statement Fees
Paper Statement Fee
Cost: Free (digital-only statements).
Novo provides digital-only statements, and there is no fee for accessing your monthly account statements online. However, if you request paper statements, they may be subject to a fee (though this service is rarely used).
Summary of Typical Costs
Fee Type
Estimated Cost
Account Opening Fee
Free
Monthly Maintenance Fee
Free
ATM Withdrawal Fee (in-network)
Free
ATM Withdrawal Fee (out-of-network)
$2.50 per transaction
ATM Withdrawal Fee (international)
$2.50 per transaction + third-party fees
Cash Deposit Fee (via GreenDot)
$4.95 - $5.95 per deposit
Debit Card Purchase Fee
Free
Foreign Transaction Fee
1% of the transaction amount
ACH Transfer Fee
Free
Overdraft Fee
Free
Domestic Wire Transfer (incoming)
Free
Domestic Wire Transfer (outgoing)
$25 per transfer
International Wire Transfer (incoming)
Free
International Wire Transfer (outgoing)
$45 per transfer
Sub-Account Maintenance Fee
Free
Stop Payment Fee
$30 per request
Paper Statement Fee
Free (digital statements only)
Novo Bank offers a highly competitive and transparent fee structure, ideal for small business owners and entrepreneurs looking for an efficient and affordable banking solution. With no monthly maintenance fees, free ATM withdrawals at a large network, and free domestic wire transfers, Novo is one of the most cost-effective digital banking options available. Additionally, the ability to organize funds into sub-accounts and integrate with accounting software makes Novo an attractive choice for businesses of all sizes. While some services, such as international wire transfers and cash deposits, come with fees, Novo’s overall fee structure is minimal compared to traditional banks.
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