Novo Vs. Brex Vs. Radius Bank: The Online Small Business Bank I Chose For My Startup
UPDATED: 5/26/2021
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Essentially, this is my review of Novo vs Brex, Novo vs Radius Bank, and Brex vs Radius Bank 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.
To be successful in today’s world, where everyone is competing to be the best, starting a business is no piece of cake. And for someone doing it for the very first time, like me — an enthusiastic yet exasperated entrepreneur — escaping the safety net of my corporate job was even tougher. But the one thing that served as a parachute when I was drowning in marketing, recruitment, and administrative paperwork was a small business-banking partner I could trust.
That being said, getting to that point required research, plenty of ‘pros and cons’ lists, and trial-and-error. After which, I arrived at the following conclusion: Bank Novo is my preferred choice out of the three fairly good banking experiences I have had in the past; runner-ups were Brex and Radius Bank.
If you are me from a couple of years ago — young and full of ideas, but unsure about which business checking account is right for your new venture — keep reading my detailed Novo Vs. Brex Vs. Radius Bank review. If by chance you need a Bluevine versus Novo Bank review, just follow that link.
Hope it helps likeminded startup and small business owners make an informed choice.
Small Business Banking For Startup
For someone who is new to the world of entrepreneurship, managing finances is a huge challenge and there is not a single reason why there isn’t a need for a reliable business account. For starters it is essential to separate your personal finances from your business finances that, lucky for me, I was aware of since the beginning. Separation of these two finances made me manage my expenses, track my sales and observe the pattern in my sales easily. It also gave me the freedom to think more.
With all of my business sales and expenses in a separate bank it became easier for me to manage the day-to-day finances as well as keep track of the clients who have paid me or not. Also I enjoyed the perks of business banking account. In my case it was Novo that served me as the best business accomplice and I will tell you how.
Similarly, a separate business checking account makes it possible to keep track of your tax-deductible business spending and saves you time and resources when it is time to file your taxes. You will be more effective in adding up your deductible bills because all of your company spending is available and trackable in one account. Advertising, office supplies, business travel, life care costs, tax-deductible savings account payments, and other charges can be included.
Even if your business is small you must follow all the disciplines of the business world, hence my choice to open a business account first thing. While all banks I have been through during my start-up days Novo, Brex and Radius Bank had their own perks but Novo stayed the best for me because I find it most suitable for a startup.
Novo Vs. Brex Vs. Radius Bank
The three top-rated online business-banking services for small businesses are Bank Novo, Brex, and Radius Bank.
Seriously, ask anyone.
But what I’m here to share with you is my first-hand experience of using all three as well as second-hand data to support how, while quite at par with each other in their offerings, Bank Novo stands out among this crowd.
Novo
I like to call this service ‘feature-rich’ business bank account or something as ‘my savior in the business world’. The perks are too pleasing for an entrepreneur and this bank understands the pressure of stepping up into the business world for a newbie. Novo offers many free services that includes no transaction fee (thanks to that, I fret over paying sales commission), and many connectivity options which makes management of my accounts much easier.
For me, Bank Novo remains at the top because it does not ask you to have a minimum amount in your bank at all times, imagine that kind of pressure on an entrepreneur? In the initial days of my business, when I was focusing on marketing and recognition of my brand, I didn’t want a constant reminder to deposit some amount in my bank account.
Novo is also FDIC-insured which is a huge deal for a business checking account and not to forget the Novo Mobile app which made me manage my sales from far. I remember making the best sales in a month when I was away for summer. Without mobile banking, I would have missed that opportunity.
Moreover, a Novo company bank account offers genuine customer support, which is very needed in my case as I fret over every detail. I also get free deposits, free mailed checks, free incoming wires, various small business tool integrations, ATM charge refunds, and thousands of dollars worth of unique benefits.
With so many additional features, Novo is undoubtedly the best bank for freelancers because low-cost checking offers many benefits to a startup.
Pros
· It does not have any transaction fee
· It refunds all ATM fee
· You can integrate it with QuickBooks, Xero, Slack, and Stripe
Cons
· You cannot get a $0 deposit opening account
· The cash deposit process is not easy
Brex
Brex has been a good service for me but I switched so that means it wasn’t doing quite right what I needed. Brex has initiated the Brex Cash service which is a great thing for small businesses as you get all the services online. Brex does not have any hidden fee or charges and I don’t remember being shocked about the hidden charges at any time either.
But the trouble I faced with Brex is their limitation on transactions, which is daunting especially for a business owner. As a business owner I understand there are some days when there is a total dry spell but some days are so fruitful and you get an upsurge in sales, and who wants to limit their sales on any day? I don’t! And if I compare that with my current banking system Novo, I don’t remember getting a notification ‘Limit exceeded’
So Brex is not for me, as I couldn’t be limited with fixed cash deposits. Otherwise Brex has great perks. It does not charge any on cash deposits and offers instant payout too. You can enable various technology features such as automatic spending payouts, instant cards, expense monitoring, and payout automation if you choose to use Brex’s built-in spend management (right in your account).
Brex (CMA) ‘s cash management account is a virtual system that offers the features of a business bank with fewer fees. You can manage all the transactions in a single portal and make deposits, trade securities, transfer money and write checks.
Pros
· You can easily access your funds anytime with the Brex cash through the user-friendly online platform.
· It offers a very easy-to-use APY, which will help you earn a cash yield of 1.6% or more.
· Brex offers no transaction fee or any other charges; thus, it is a reliable option for small businesses.
Cons
· You will get limited cash deposits with Brex, which could be a bummer as your startup relies on cash deposits.
Radius Bank
For someone who relies their trust on how far a service or product dates to, the Radius Bank was founded in 1987, long before internet banking existed. So they probably know their way around banking and account management.
Radius Banking is a good banking service that offers no minimum balance requirement, I remember being excited about that. But the opening fee is $10, which is not a good thing for a startup. You can have amazing perks with an interest rate on balance above $5000 but below that you have to pay maintenance and service charges each month which I never faced with Novo Banking service.
Just like everyone, I don’t want a certain amount to be taken out of my bank account each month. Anyhow, their customer support is reliable and they address issues quickly but for me the bank did not do as I wanted it to be.
Pros
· Earn 1.5 percent cash back for
· Auto books’ invoicing facilities
· Unrestricted ATM charge reimbursements.
Cons
· There is a monthly fee
· The outgoing wire transfer fee is high
Novo Vs. Brex
Novo and Brex each bank offers an online banking service that is helpful for US citizens and easy to use for operating a business alongside. These banking services don’t demand much of your time or working hours as they are easy-to-use and understand. The process is tailored to suit the needs of sole proprietors of businesses and startups.
Both provide many features with free options and are FDIC insured. You will get free banking service, checking and savings accounts, unlimited use of ATM networks, unlimited transactions without any fee, and no overdraft fee. You can also send cash-free, but some limitations are mentioned.
Furthermore, each service strives to incorporate business tools that streamline business processes and improve scalability. Free mailed checks are available for all providers, a perk that is hard to come by even with standard business banking services. Stripe, QuickBooks, Slack, Xero, Transfer wise, and Zippier are among the business applications that Novo and Brex combine with.
But with Novo, you don’t get a limit on cash deposits as opposed to Brex. Since business operations mainly depend on cash deposits and sales and purchases, everything needs to have a suitable cash inflow; with Brex, you could be limited with sales per day, so your business could be limited.
Novo Vs. Radius Bank
For starters, Novo charges a 50% less opening account deposit limit. Novo demands $50 as starting deposit, but Radius Bank needs $100. Both banks allow a $0 balance at times when you are having a sales drought. Novo does not charge a monthly service fee, whereas you have to pay $10 per month for Radius bank to meet the services’ criteria. Although this only applies when you have a balance under $5000.
Novo does not charge any interest rate, but Radius bank offers a 0.10% interest rate on balances more outstanding than $5000. Both the banks have zero ATM fees and rebates on ATM charged by other banks. Novo does not offer cashback, whereas, with Radius Bank, you get 1% cashback on online and credit transactions that are signature-based. This is only when you pay with your debit card.
Both the banks offer a free mobile deposit option for checks. Novo has an excellent policy of providing free services. You don’t have to pay any maintenance and service charges, which is why I chose Novo over the others, and Novo makes managing money easier with unlimited cash deposits and withdrawals.
Brex Vs. Radius Bank
Radius Bank provides personal and enterprise clients’ internet-only online banking options. The Personalized Checking account is suitable for companies who don’t want their monthly transaction caps to be enforced. You’ll get unlimited transfers for free, with no fees or surcharges. Brex is somehow similar to Radius bank in terms of easy internet banking options, where you get many options and many ways to pay and manage your business expenses.
Brex is also a cost-effective banking solution for start-ups because it does not charge any fees; deposits are free, and there are no ACH or wire transfer fees. There is no minimum balance limit, so you can store as much money as you want for free. Brex does not allow you unlimited transactions, and Radius bank isn’t a good choice under a balance of $5000. If you are looking for both the features in a place, then Novo is a good pick.
Why Choose Novo
Novo is an easy banking service with an even more accessible to open bank account system. Indeed, the whole process takes less than 10 minutes, and there is no detailed long-tail processes or forms to be filled. After all, taking the ‘no time spent on account’ to a whole new level, Novo is a quick service to choose from.
Another great thing about Novo is the technology integration on each step. They are by far one of the most technologically advanced banking systems available. Since Integrating technologies with other enterprise apps is crucial for speeding up operations that might otherwise take hours, accounting can be made much faster and less time-consuming by combining with applications like Stripe and QuickBooks.
Why Choose Brex
Brex’s bundled perks are one of the most notable characteristics. Brex is a surprisingly free service that credits you up to 8X by using your account to pay for your company expenses. Signing up with Brex will get you up to 50,000 bonus points.
Why Choose Radius Bank
Radius Bank allows you access to your account 24 hours a day, seven days a week, online or via a popular smartphone app. From the palm of your hand, you’ll be able to handle automated invoices, pay fees, deposit checks, collect cables, deliver ACH payments, and more.
Concluding Remarks
Traditional and digital banks are available to company owners who require a business checking account. Traditional banks with physical locations sell traditional checking accounts. These accounts often offer a more comprehensive range of goods and services, but they often have higher costs overall.
Since the world is progressing and hard cash is a lesser-used thing. Many people go with cards, credit or debit, or transactions in online mobile apps. And for businesses that are catering to a variety of people from different regions, digital cash is a good choice. Most of the online checking accounts do not have any fee, or even if they do, they don’t charge a handsome amount of money to your business. They are easy to use and mobile. You can deal with sales and transactions anywhere.
Radius Bank is more often used for high-volume transactions, so they offer benefits for cash more than $5000 in your bank account. While this could be a plus, having so much bank balance in the initial days is not possible. If you have a greater volume of transactions, then Radius Bank could be a good choice.
On the other hand, Brex offers limitations with the cash deposits limit. You cannot be limited with the cash flow, especially when you are running a business.
While Novo has its limitations, it is an excellent bank for new entrepreneurs as it does not put forward any conditions or limitations to abide by. You don’t have to pay unnecessary charges in the name of maintenance or service fee. Also, there is no minimum balance requirement nor a cash limit, so your business can roam free and grow.
