Novo vs Chime vs NBKC For Online Small Business Banking

UPDATED: 5/28/2021
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This article presents an overview of three small business personal banking commodities. Here are the details you should know about Novo, Chime, and NBKC and how they compare to each other’s banking options.

Basically, my review of Novo vs Chime and Novo vs NBKC and how these bank 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.

When starting a new business, it can be time consuming and taxing on yourself to be the only one keeping track of all the expenses, transactions, and revenue. While it might not seem to be the most crucial part of the business, a trusted bank is something all serious business owners and sole proprietorships should take into consideration. Distinguishing between your personal and business finances can be tricky if operating all under the same bank account.

Think about it. The day comes to file for taxes, and all of a sudden, you are digging through a year’s worth of expenses and profits, not knowing what side that transaction was on. Scary!

In this article, the three banks we talk about are Novo, Chime, and NBKC, which are all fantastic options as a small business banking system goes. Small business banking differs from the traditional large corporate banks like Chase, Bank of America, or Wells Fargo, whose focus is on their profits rather than the customer’s potential earnings and banking experience.

Small business banking offers their customers business-specific features for modernized business processes. Features focus on managing finances, including a snapshot overview of the account, recent activity, easy methods to fund the account, simple payments, and easy access to statements.

Novo Bank Overview

Novo was founded in 2016 in San Francisco by a tech company and actually has a strong banking partnership with Middlesex Federal Savings to create an incredible online bank. Novo creates the ease of a bank branch by providing simple terms and no hidden fees simply, securely, and efficiently. While enabled by their banking partner, Middlesex Federal Savings, Novo can operate like a tech company without scrutinizing traditional banking systems.

Some people might find this aspect to be somewhat off or odd, but we can ensure you that this is one hundred percent entirely safe. How it works is that your money would be sitting in a Middlesex Federal Savings account that is monitored or serviced by Novo. If you are concerned about insuring your money, don’t worry; since this partnership exists, the bank insures your money up to the standard maximum of $250,000.

Targeted towards Millennials and tech-savvy persons, Novo has the ability to give users access to everything a traditional banking experience would offer, but with a focus on technology and convenience with offerings like integrations with Stripe, Square, QuickBooks, and more.

Chime Bank Overview

Chime offers an entirely online and mobile banking experience for people always on the go. It’s convenient, easy to use, and has no hidden fees. It is built to be nothing like your traditional neighborhood bank. Chime was built with the idea of partnering with their customers. There are no monthly fees when using your account, and when spending, the merchant actually pays a small amount from Visa, not you.

Chime likes to keep it straightforward with just one checking account (Chime likes to call it the “Spending Account”), one savings account, and one secured debit card accessible all within their online mobile app. All Chime accounts are also insured by the FDIC up to the standard maximum of $250,000 in the event of a bank failure through its partner banks, Stride Bank, NA, or The Bancorp Bank. How it works is that your money gets deposited into your account, and you can use it for your daily purchases. If you have the savings account set up, you can choose to transfer your money to a savings account. You can also transfer money from your checking (spending) account to an external account, which would cost you nothing.

NBKC Bank Overview

Founded in 1999, NBKC is a primarily online and mobile bank but has a few handfuls of brick and mortar stores located in Kansas City, Missouri. The NBKC banking experience is designed to be easy and straightforward for every customer. They offer plenty of bank accounts that suit the needs of the customers. There are Checking, Money Market Savings, a hybrid version called the NBKC Everything Account that holds a checking and savings account which pays a hefty interest rate on the entire balance, and Business Accounts. All accounts provide competitive interest rates, no hidden fees, no minimum balance requirements, or limits on transactions.

Since this is not an entirely online mobile bank like the two mentioned above, there is no need to be “backed up” by another bank system. The NBKC bank is insured entirely by the FDIC up to the standard maximum of $250,000 per depositor, for each account ownership category, in the event of a bank failure. The Better Business Bureau has rated the NBKC Bank at an A+ in trustworthiness. A great BBB score signals that a company is honest in its advertising, is transparent about business practices and responds effectively to customer complaints.

Novo Account Offerings

For small business owners, Novo is fantastic. You already have so much on your plate to deal with, and banking shouldn’t be a problem for you. With Novo, they make it so simple. You can choose the only checking account they offer and get going right off the bat. Note that it is required to have $50 to open an account with Novo. However, once you open the account, you can do what you please with that $50.

That’s just one of their perks. Novo does not take any of your money from you. The $50 starting deposit is there for protection that you will put money into the account and actually use the checking account. Also, by adding in the $50 you unlock the remaining features of an account with Novo. Based on research and personal experience, it is so incredibly easy and user-friendly to open an account with Novo too! Below are the features Novo offers their customers when opening a checking account.

1. No hidden fees. This is a given to any business owner looking for the least expensive banking system.

2. Novo is transparent about their prices if they have any. There may be a fee if there are any insufficient funds charges or an uncollected funds returned fee, of which both are a charge of $27.

3. Withdraw money anywhere and get refunded on any ATM fees.

4. Free debit cards, transfers, mailed checks, and incoming wires, including foreign wires.

5. Your Novo Debit card is EMV chip protected and will be accepted worldwide.

6. Flexible card payments, meaning you can use your Novo card with Apple Pay or Google Pay.

7. You have unlimited free transactions all within the US.

8. Their mobile app has free mobile deposits if you need to deposit a check.

9. Seamlessly integrates small business “must-have” apps with their mobile app.

Being a tech company, Novo wanted to make sure their client’s business life was easy, so they partnered with numerous other technology service providers. Currently, Novo offers integrations within their app to the below companies.

1. Stripe and Shopify: perfect for business owners that run an e-commerce store, and you have the ability to track all payments in real time.

2. QuickBooks and Xero: an accounting must have

3. Slack: be notified in real time of updates from your account

4. Zapier: automated workflows

5. TransferWise and Paypal: a must-have option if you ever need to transfer money outside of the country at the lowest rate possible

Chime Account Offerings

The design of Chime is for its customers to primarily use the mobile app. A fantastic perk of the Chime mobile app is that it sends a daily account balance notification as well as transaction alerts when you make a purchase.

One safety measure put into place with Chime’s mobile app is that you can easily disable all transactions from the Chime app if you end up misplacing your card or it gets stolen. All within the app, you can work with what you need. If you need to replace a debit card, you can do it quickly and for free.

Below are some more benefits to having a Chime bank account.

1. Customers can get replacement debit cards free through the Chime app.

2. Chime offers its customers a simple lineup of free account choices.

3. Within Chime, they provide competitive savings APY.

4. Need help saving? Chime offers automated savings tools to help improve your habits.

5. Receive early receipts of direct deposit payments.

6. Withdraw money anywhere and get refunded on any ATM fees.

7. The Chime Debit card is accepted worldwide.

8. Flexible card payments, meaning you can use your Chime card with Apple Pay or Google Pay.

9. Their mobile app has free mobile deposits if you need to deposit a check.

NBKC Account Offerings

The NKBC bank provides various ways to access and manage your money. Being a flexible banking option as a brick and mortar bank and a digital online banking service, NBKC can be beneficial for those currently residing in Kansas City, Missouri, by going immediately into their multiple branches to speak with someone there.

Many options are available for the small business owner that might want the opportunity to physically go into a banking branch versus online only. Nonetheless, online banking is the way of the future, and with NBKC, they know it. The NBKC bank wants to help make their customers feel secure and have a user-friendly banking approach. So, they came up with the “Everything Account.” The Everything Account provides the customer with a Mastercard debit card that happens to be fit with Apple Pay, Google Pay, Venmo, and other digital wallet apps.

Below are some more benefits to having an NBKC bank account.

1. Wherever Mastercard is accepted, you can use this card to make purchases.

2. Easily make ATM transactions at more than 34,000 MoneyPass ATMs.

3. The NBKC bank will reimburse any third-party ATM fees up to $12 monthly.

4. Quickly and securely add money to your bank through an ATM, direct deposits, mobile check deposits, and wire transfers.

5. Unlimited direct deposit transactions.

6. No minimum balance is required at the time of opening an Everything Account.

7. NBKC provides competitive APYs on checking/savings and money market accounts

Comparing Small Business Banks

We want to give you the option to view the comparisons between the three banks. Below we are comparing Chime and NBKC banks with Novo for a better insight.

Novo vs. Chime

Chime has plenty of excellent benefits but compared to Novo; they lack in substantial areas. Get the full rundown in my recently updated Novo Bank review for small business owners at https://jamesgreenebc.medium.com/novo-business-banking-review-cc89f703a2b7

Similarities

● Novo and Chime allow for replacement debit cards, and they are free.

● Novo and Chime offer a refund for ATM fees.

● Both banks are secure, FDIC insured and accepted worldwide

● Both banks have flexible card payments

Dissimilarities

● Novo prides itself on having absolutely no hidden fees.

● Novo provides highly rated seamless integration of third-party business apps such as Stripe and Shopify.

● Novo offers unlimited free transactions all within the US.

● Chime offers competitive savings APY and will automate savings tools to help you stay on track.

● Chime can provide you early receipts of direct deposit payments.

Novo vs. NBKC

NBKC has one significant benefit compared to Novo that they have physical branches, but they are located in Missouri. Below are the similarities and dissimilarities between these two banks.

Similarities

● Novo and NBKC offer a refund for ATM fees.

● You can quickly and securely add money to your bank with both banks through an ATM, direct deposits, mobile check deposits, and wire transfers.

● There are unlimited direct deposit transactions with both banks.

Dissimilarities

● NBKC has physical brick and mortar banking branches, unlike the online only Novo bank.

● With NBKC, there is no minimum balance required to open an Everything Account.

● NBKC is a Mastercard where Novo is a Visa

Who To Pick?

Honestly, from personal experience, I’m a firm believer that Bank Novo is the go-to small business banking provider. Whether you are a small business yourself or in a sole proprietorship, Bank Novo is the bank we suggest for you.