Novo vs Axos — Which Checking Account Should You Go For?

UPDATED: 8/24/2021
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If you own a small business, are thinking of starting one or are a freelancer, chances are that you’re here reading this article for a reason. And I get it! Figuring out your finances and managing them in the best possible way is a huge task that I had a difficult time figuring out myself.

If, like me, you are newly starting out on this journey or are simply looking for better solutions, you should know what you need to consider to make a choice that will work perfectly for you.

Where do you even begin with this sort of thing? Don’t worry! After all, you’ve come this far. Plus, there are always people willing to help and, for both our sakes, I looked into it (a lot).

Luckily for both you and me, there are options. More and more, banks that specifically cater to people like us have been gaining popularity for all the right reasons. With all the features that these banks offer, you can look for the one that meets all your needs and more.

In this case, I look at Bank Novo and Axos and compare various features of the two. Based on what I know, Novo seems to be the best choice when it comes to a great bank checking account.

So, let’s dive straight into it, shall we?

Why Do I Need a Business Bank Account?

Ah, yes. The million-dollar question. Why do I need a business bank account in the first place?

For starters, you must have heard of the age-old adage of maintaining a healthy work-life balance. That doesn’t just apply to your time but also to your finances. Having a business bank account can help you separate your business finances from your personal finances.

This will also make it much easier for you to record how your business is doing and where you need to improve. Additionally, you will be able to portray your professionalism and seriousness to your clients, customers and collaborators.

Keeping up with taxes and expenses when it comes to your business can also be a huge task. Opening a bank account for your small business will reduce this burden to a great extent, as you will now be able to manage everything easily.

What Do I Need to Keep in Mind?

Now that you’ve decided (good for you!) to open a business checking account, what should you keep in mind before you decide which bank you should opt for?

Well, first of all, remember that these banks and platforms that cater specifically to your small business needs are bound to be slightly different than the personal or bigger banks that you might be more used to. This is because their features and services focus almost entirely on your business and its needs.

This makes it clear that you need to look at all the features that these banks provide in terms of the kinds of bank accounts, online options, fees and minimum balance, benefits, loans, transparency, refunds and more.

Let us now look at how these features apply to Novo and Axos and why I think that Novo is ultimately the better option.

Novo and Axos — What Exactly Do They Do?

I keep mentioning Novo and Axos, but what exactly are they and what do they offer? How can they meet all your needs for a checking account? Will you have to constantly run after them when you need something? Will they respond soon to your queries?

I asked myself these questions all the time, too. Having been there, done that, I can assure you from the other side of it that things are easier than you think. In fact, they are a lot more convenient than I could have even imagined. Let me tell you what I mean.

About Novo

Novo is a business banking platform that partners with Middlesex Federal Savings to provide a seamless banking experience for small business owners, freelancers and entrepreneurs.

Bank Novo provides a wide range of features when it comes to your checking accounts, such as free transfers, refunds, online banking, integrations and no monthly fees. The account is also backed with FDIC insurance.

About Axos

Axos Bank, falling under Axos Financial, provides great small business banking solutions. An online bank that combines technology and finance, Axos offers smooth and secure online banking services.

Further, Axos provides a range of features for your checking accounts that include FDIC insurance, no monthly fees, several benefits, reimbursements and more.

Novo vs Axos

We have now briefly looked into what each of these banks does and what it offers. Based on the previous sections, you now also know what you should be looking for when it comes to choosing a bank and a checking account. Make sure you are aware of what exactly it is that your business needs.

You can also make personal consultations and inquiries with the bank itself and make a well-informed decision.

When it comes to Novo and Axos, how will you know which one is better based on their features? Allow me to take you through the services that each bank offers and how they compare to each other in terms of these.

I will also provide a couple of limitations that I experienced and witnessed so that you have all the fair information beforehand. It will then become clearer and easier for you to make a decision.

Setting Up

It is extremely simple to open a checking account with Novo. The application process takes merely a few minutes and the approval process is also fairly short. You can easily link other accounts and transfer funds between them.

Opening a checking account with Axos is an easy process as well. First, however, you must decide the kind of account you want your business, each of which will differ depending on the nature and scale of your business. While they provide a welcome bonus, there is a minimum balance requirement for the same.

Monthly Fees

There are no hidden or monthly fees when it comes to a Novo checking account. In fact, they go out of their way to ensure that you are not charged any fees when it comes to your transactions. They also refund all fees that are charged at ATMs. Novo also allows unlimited free transactions every month.

When it comes to Axos, there are no monthly fees if you opt for the basic business checking account. They also reimburse all your ATM transaction fees. However, when it comes to monthly transactions, the number is limited. They also start charging after the first 50 checks you receive.

With Axos, moreover, for accounts other than the basic business account, you will need to maintain a minimum balance in order to avoid monthly fees.

Minimum Balance

Novo does not have any minimum balance requirement for maintaining your bank account. To set it up, you have to make a very small minimum deposit of $50. This is great for you if you are starting a small business and need time to maintain consistent funds in your account.

For an Axos account, you have to make a minimum deposit of $1,000 to open your account. For the basic business account, you do not need to subsequently maintain this minimum balance. However, for other business checking accounts, you will need to maintain the minimum balance requirement.

Online Support

Both Novo and Axos offer great online support since both of them are online banks. You can manage your accounts online and easily make deposits and transfer funds. They offer a range of tools and features for the same. Their mobile applications are also easy to use and navigate, offering you a smooth online banking experience.

You can also request and access customer service online. This service is usually very responsive as well. This makes it extremely convenient in the digital world. Trust me on this one!

Offline Support

Unfortunately, neither Novo nor Axos has physical banks that you can go to if you require that kind of support. Usually, this works conveniently as most transactions nowadays can be done online. However, if you sometimes need to visit a branch physically for whatever reason, you will not be able to do so in this case.

This makes you entirely dependent on the online services of both these banks.

Integration

Novo allows you to integrate your account across a variety of tools that you may be using for your business or startup. These include Stripe, Shopify, QuickBooks, Xero, Zapier and Slack. In fact, if you use Stripe, you get even more benefits as Novo is a verified partner when it comes to Stripe.

This is a great option for you if you use any of these platforms in your business. It will make your business much easier to conduct. This will end up making your life much easier too!

Axos is compatible with QuickBooks and allows you to integrate your business account with it. Since it cannot necessarily be integrated with other tools, it offers much more limited options.

Types of Accounts

Novo specifically caters to businesses and their financial needs and account management. For this reason, you will have to prove that you are a small business or freelancer. You will only be able to open a business checking account with them.

While this might seem like a limitation, it works perfectly for you if you are a small business owner or freelancer as your account will give you perfectly streamlined services as well as more features for your account.

Axos, on the other hand, accepts all kinds of checking accounts. This can be personal as well as business related. Within the business category, it allows you to choose from several options depending on what kind of business you are.

Thus, whether you are a small or big business, you can use Axos. However, this is likely to limit the range of features you might have access to if you are looking for a small business account.

International Compatibility

Novo is available worldwide and allows you to withdraw money anywhere with later reimbursement. You can also get a Novo card whenever you are going abroad. Further, you can use Wise for your international transfers as well.

Axos only offers unlimited reimbursement for domestic ATM fees. It also charges $50 for an international wire transfer.

Cash Deposits

If you want to make cash deposits, you will face a limitation when it comes to both these banks.

For Novo, you will not be able to make any cash deposits at all. This will be a challenge for you if your business accepts cash payments on a regular basis.

In the case of Axos, some ATMs do accept cash deposits. However, if you do not live near these ATMs, you will find it difficult to deposit your cash.

The Final Word — Which Bank Should I Really Choose?

Based on the features, limitations and comparisons of both Novo and Axos, you can now make an informed decision about the kind of checking account you want to open and with which bank.

Each business has several distinct requirements that depend on lots of factors. If you are reading this, I’m sure you know exactly what I’m talking about and that you are looking for precisely the kind of checking account that will cater to all your business needs.

According to the information that I have given you, opting for a Novo checking account would be a much better choice for you if you are a small business or freelancer. This is because this checking account is a lot more accessible and has a variety of features as compared to the Axos checking accounts.

It is also much simpler to navigate considering that it offers a single option with a multitude of features that are streamlined just for you and your business.

Further, the Bank Novo account and platform are also much easier to use with greater interaction, accessibility and transparency when it comes to finding information and managing your account.

For these reasons, I personally believe that you should take the leap of faith and open an account with Novo. You will not be disappointed!