Novo vs Axos vs Bluevine: A Comparison of Online Business Checking Accounts
*** Updated 5–10–2022 ***
So this is a short review of Novo vs Axos, Novo vs BlueVine, and Axos vs BlueVine and how their small business checking accounts compare.
If you want the short answer.. sign up to Bank Novo if you’re a small business looking for the best in-class account with no fees.
Commerce is a vital part of the economy, and businesses are the heart of a nation’s — and the worlds — economy. There are businesses of all shapes and sizes and in all industries that service various populations, and while each organization is unique, there’s one thing that every business has in common: a bank account.
Bank accounts enable entrepreneurs to keep the spending and depositing of funds separate from their personal banking needs. They also allow for accurate bookkeeping, confirm that a business is a business and not a hobby, and provide a precise audit trail for tax purposes. Incorporated businesses that are based in the United States are required by the Internal Revenue Service (IRS) to keep a separate bank account for their organizations. Businesses need merchant accounts in order to accept transactions that are linked to bank cards, and retail businesses that use a point-of-sale system will also need a separate bank account for their operations. Plus, bank accounts confirm the professionalism of a business. In summary, checking accounts are essential for businesses.
Given the fact that bank accounts are so important for businesses, there are seemingly endless options to choose from. Despite that fact, however, choosing a checking account for your business can be an overwhelming and even frustrating process. While big banks are generally easy to access, they tend to charge exorbitant fees. The costs associated with credit unions may be lower, but accessing them can be hard, as the technologies linked to credit unions tend to be subpar and the rules related to withdrawing and transferring funds are often rigid (for example, a limit on the amount of money that can be withdrawn each day is not uncommon).
Given the frustrations and limitations that can be linked to business bank accounts, if you’re a small business owner, there’s no doubt that you’re wondering what you should do. If you don’t handle a lot of money, an online checking account for your business may be the right option or you. There are dozens of online checking accounts for businesses and new ones pop up all the time, so there are plenty of options to choose from; however, there are three that have garnered a lot of attention:
1. Novo
2. Axos
3. Bluevine
To determine which one is the most business-friendly and the right choice for your business banking needs, below, you’ll find an overview of each online checking account, as well as a comparison of the three.
Bank Novo
This online bank account is geared toward small businesses, entrepreneurs, and freelancers. According to Novo, their mission is “to empower customers with their financial data and provide the most compelling banking experience possible”. An independent tech company, Novo isn’t owned or operated by a bank. Instead, they’ve teamed up with Middlesex Federal Savings, who handles banking. The platform was specifically designed with modern business owners in mind. Dozens of freelancers, small business owners, and startups have opened accounts with Novo. Setting up an account is quick, easy, and can be done in minutes. Accounts are highly secure and no minimum balance is required.
Axos
Established on July 4, 2000, Axos Bank (formerly named Bank of Internet USA) has positioned itself as a leader in the digital banking industry. Their financial services are technology-driven and they are committed to providing state-of-the-art banking products and services to the customers they serve. According to Axos, their mission is to “challenge the status quo by liberating you (business owners) from the constraints of traditional banking”. The technology-fueled services that they provide progress to meet the needs of their clients and prove to ensure that business owners stay on top of their finances. Axos Bank is an FDIC-insured holding company that is publicly traded on the New York Stock Exchange, and they’re one of the most established and trusted digital banks in the United States.
Bluevine
Bluevine is committed to offering adaptable funding, payments, and checking for small business owners. Their dedicated to empowering small businesses with advanced banking by infusing industry-leading technology and security with the proficiency and compassion of their dedicated team. Bluevine is an online banking service that offers several benefits, including no monthly, NST, or incoming wire fees, 1.0% interest on balances up to $100,000, unlimited transactions, no minimum balance requirements, and the ability to pay bills and vendors vis ACH, check, or wire; just to name a few.
A Comparison of Novo, Axos, and Bluevine
Now that you have a basic background about these online checking accounts for businesses, let’s do a direct comparison of the three.
Novo vs Axos
Both Novo and Axos are digital banks that offer free checking accounts for small business owners. Applying for checking accounts is quick and easy on each platform; just provide basic personal and business information, answer a few questions about your organization, and once your account is set up, you can link bank accounts, start making payments, make deposits, and process ACH transfers. Both Novo and Axos digital checking accounts are available to US-based businesses in all sectors. Additionally, both online financial organizations are FDIC-insured.
Novo is a limited-service bank that is geared toward small businesses and freelancers. They only offer checking accounts, which are completely free, and a minimal deposit of just $50 is all that’s needed to open an account. Additionally, there’s no minimum balance requirement and there are no monthly or hidden fees. A checking account with Novo can be used to transfer funds, mail checks, and accept wires. They also offer a Bill Pay feature that can be used to pay bills and invoices electronically. While they don’t have their own ATM network and they don’t participate in a third-party network, Novo does reimburse all ATM fees that you incur at the end of the month on any terminal that you may use. It also comes with a MasterCard business debit card with a daily withdrawal limit of $1,000.
Axos offers several different checking account options, and their Basic Business checking and their Business Interest checking accounts are geared toward small business owners. They offer a $100 bonus for new business owners that incorporated their businesses after June 1, 2020. They don’t charge ATM fees on their own terminals and offer reimbursements on domestic non-Axos terminal ATM fees. Their Basic Business checking is designed for small businesses that have moderate account activity, there are no monthly maintenance fees, and the minimum deposit requirement to open an account is low. The Business Interest checking is ideal for growing businesses that have cash reserves. If you maintain an average balance of at least $5,000, there are no monthly maintenance fees.
Of these two online checking accounts, Novo is a preferred option for business owners.
Novo vs Bluevine
Again, Novo and Bluevine are both digital checking accounts that are geared toward business owners. Both financial platforms aim to simplify the banking process for business owners.
Novo focuses on offering features that make it easier to manage your businesses finances. They feature multiple technology integrations to make that possible. Additionally, they are committed to offering a fast application process and no hidden fees. They offer a free debit card, free transferred, and incoming wires, including foreign wires. Furthermore, when you open an account with Novo, you can integrate your business checking account with several services, such as QuickBooks, Stripe, Zapier, Slack, Xero, GoDaddy, and TransferWise. You can also use their free mobile app to deposit checks, too.
With Bluevine, signing up for an account is extremely fast; it only takes about 60 seconds. They don’t charge monthly or maintenance fees, incoming wire fees, ACH payment fees, minimum deposit fees, minimum balance fees, non-sufficient funds fees, or in-network ATM fees at MoneyPass ATM terminals. They do charge a $15 fee on outgoing wire transfers, though. Bluevine digital accounts are more similar to traditional business checking accounts.
Again, when comparing these two online business checking accounts, Novo stands ahead of Bluevine, as Novo is more simplistic, easier to use, and allows you to keep more of your money.
You can find another review of Novo and Bluevine by themselves over at Medium.
Axos vs Bluevine
Axos and Bluevine aim to provide business owners with a simple way to manage their finances. Both services offer free online checking accounts for their customers.
Bluevine’s online business checking account — Bluevine Business Checking — offers unlimited transactions, live support, and no monthly fees. A perk of having an account with this platform is that it pays up to 1.000% APY interest on balances over $1,000. Plus, you’ll receive a MasterCard debit card, which is issued by Bancorp Bank. Bluevine does not offer deposit accounts, such as money markets or savings, or certificates of deposits.
Axos offers two digital accounts for business owners: Basic Business checking and Business Interest checking. The former is intended for small businesses with moderate account activity, and there are no monthly maintenance fees and the deposit requirement to open account is low. The latter account is geared toward growing businesses with cash reserves. There’s no monthly maintenance fees, as long as you maintain an average balance of at least $5,000 a day.
Despite the benefits that both Bluevine and Axos offer, Bank Novo’s digital checking is a better solution for business owners. That’s because they charge the lowest fees, setting up an account is simple, and they truly simplify the process of online banking for businesses.
