Novo vs Navy Federal vs Bank Of America — My Best Business Checking Breakdown

Starting your own business is tough but rewarding. You get freedom and flexibility that a regular 9–5 job can’t give you. But when it comes to handling money? That’s a different story.

If you’re like me and hate dealing with numbers, managing your business’s finances can be a headache. Did you know that most new business owners spend around $30–40,000 in their first year? That’s a lot!

That’s why it’s crucial to find a bank that understands your needs and makes things easier. Even though you’re used to long work hours and endless tasks, having a trustworthy bank handle your money can be a huge relief.

Tired of high bank fees and poor customer service? You’re not alone. Many big banks just don’t get small businesses. But the good news is, there are banks out there that do. They offer great services, rewards, and low fees tailored for business owners like you.

The best part? Some of the top banks for businesses are online-only. No more driving to the bank, waiting in line, filling out endless forms, or dealing with grumpy tellers. Online banking is convenient and often cheaper.

In this article, I’ll review three online banks: Novo, Navy Federal, and Bank of America. I’ll share my personal favorite and dive into why having a good checking account is essential for your business.

Novo Small Business Checking Account

Novo offers free business checking accounts with no monthly maintenance fees, minimum balance requirements, or overdraft fees. This allows small business owners to avoid common banking charges right from the start. Accounts come with Visa debit cards, online banking, and accounting software integrations.

Loans are a big part of Novo’s offerings. They provide term loans ranging from $5,000 — $500,000 and lines of credit from $10,000 — $100,000. Novo touts fast loan decisions in just minutes or hours based on factors like revenue and bank balances. Same-day funding can be arranged in some cases.

A major advantage of Novo loans is transparency. There are no origination fees, prepayment penalties, or hidden costs outside of competitive interest rates. You get straightforward pricing upfront without surprises down the road.

Novo accounts come with robust digital banking capabilities. Business owners can deposit checks via mobile, make payments of all types online, and integrate accounting systems for streamlined financial management.

Security and compliance are priorities at Novo. Accounts are FDIC insured up to $250,000 for protection. Novo uses bank partnerships to adhere to regulations in providing accounts and lending.

Novo understands small business needs with 24/7 customer support via phone, email or chat. They also offer a library of guides and resources specifically to help entrepreneurs master finances.

Pros:

• No monthly maintenance fees or minimum balance requirements
• Free Visa debit card included
• Online banking and mobile apps for account access anywhere
• Deposit checks via mobile app
• Integrates with popular accounting software
• Fast loan decisioning if financing needed
• 24/7 live customer service and additional resources

Cons:

• No option for personal banking; only services business accounts
• No paper check writing capability within account

Navy Federal Small Business Banking Account

Navy Federal offers business checking accounts that include 250 free monthly transactions, nightly earnings credit on balances, and no minimum balance fees. Digital banking features like mobile deposits and account alerts come standard. This combo makes Navy Federal a strong basic business account option.

For accessing funds quickly, Navy Federal provides 50% off same-day deposits on checks through their mobile app. They also offer up to $10 back on fees for using out-of-network ATMs. These perks optimize business cash flow capabilities.

A standout offering from Navy Federal is their business credit cards, with options for cash back, travel rewards, and balance transfers. Credit card financing can be vital for small business expenses.

Navy Federal has a helpful Treasury Services team that small business owners can work with directly for lending, credit cards, lines of credit, and more tailored financial products.

As a credit union, Navy Federal is a not-for-profit organization owned by its members. Earnings are returned to customers via better rates, lower fees, and improved services.

Pros:

• No monthly service fees or minimum balance requirements
• 250 free monthly transactions included
• Mobile check deposits and digital banking access
• 50% off same-day mobile check deposits
• Access to business credit cards and lending
• Helpful Treasury Services team for tailored financial products

Cons:

• Limited to members of the armed forces, veterans, and their families
• Fewer branch locations compared to nationwide banks
• Limited integration with accounting software

My bad experience with Navy Federal

After hearing positive feedback from friends, I decided to apply for a business checking account with Navy Federal Credit Union. I knew I wasn’t military-affiliated, but learned online that they offer business accounts to non-military members.

The application process was lengthy, with multiple identification and background checks required. After nearly two weeks of document submissions, my application was finally approved.

Or so I thought. When I went to fund my new account online, the transfer was rejected. I contacted customer service and was informed that while Navy Federal offers business accounts to non-military, there are eligibility restrictions.

Apparently, my business was deemed ineligible according to their internal criteria that was never disclosed to me initially. No one informed me of these limitations during the lengthy application process either.

Frustrated at having my time wasted, I asked why my business didn’t qualify me for an account that is publicly advertised. The representative could not provide specifics, only stating that eligibility factors can vary.

I decided not to argue further and withdrew my application. But the opaque rejection felt unfair given I was led to believe non-military accounts were an option. The experience left me skeptical that Navy Federal really wants to serve civilian small business customers despite their claims.

Bank of America Business Checking Account

Bank of America offers several tiers of business checking accounts to meet different needs. Their Business Advantage relationship-based model provides perks like zero monthly fees and no transfer limits as balances grow.

Small business owners will appreciate Bank of America’s extensive branch and ATM network, with over 4,100 branches and 16,000 ATMs nationwide. This unparalleled access makes in-person banking convenient.

Bank of America provides online and mobile tools for convenient digital banking access 24/7. Features like mobile check deposit, account alerts, peer-to-peer transfers and scheduling payments streamline business finances.

Beyond just business checking, Bank of America offers an array of other financial services like credit cards, loans, lines of credit, merchant services, and more. Expanding businesses can access these seamlessly.

Pros:

• Multiple account tiers based on needs and balances
• Over 4,100 branch locations for convenient banking
• Access to 16,000 ATMs nationwide
• Robust online and mobile banking features
• Variety of additional financial service offerings

Cons:

• Monthly maintenance fees on some lower-tier accounts
• Minimum balance requirements to avoid monthly fees
• Transaction limits on basic business checking accounts
• Poor customer service reputation based on complaints

Why I left Bank of America

Eager to separate my new business finances from personal, I opted to open a business checking account with Bank of America, where I had banked for years. Given my long history as a customer there, I expected a smooth transition.

The in-branch opening process was lengthy but straightforward. I opted for their basic “Business Advantage Fundamentals” checking that advertised no monthly maintenance fees with just a $100 minimum opening deposit.

Two months later I was shocked to see a $16 monthly fee charged to my account. When I contacted Bank of America, they informed me the fee was due to not maintaining a high enough minimum daily balance. This requirement was never disclosed to me.

I visited my local branch to discuss the fee with the manager. They refused to refund the charges, essentially accusing me of not reading the fine print closely enough. There was no good-faith effort to resolve my issue.

On top of the fees, Bank of America’s online portal and mobile app were cumbersome to use for my business account. The functionality lagged behind more modern offerings. And getting customer service on the phone took exceedingly long hold times.

Needless to say, I was let down by Bank of America’s service after banking with them for many years. I closed my new business account within 6 months of opening. The experience demonstrated how even long-time customers can be treated poorly.

Bank of America vs Novo vs Navy Federal. Why I choose Novo long-term

The disappointing experiences I had with Bank of America and Navy Federal left me wary of traditional banks for my business banking needs. But I knew I had to set up an account somewhere to get my new consulting business off the ground.

After asking other small business owners for recommendations, I kept hearing great things about the online bank Novo. I decided to give them a try and opened a Novo business checking account entirely online.

Right away I was impressed with Novo’s modern interface and transparency. All the account fees, policies, and features were clearly outlined upfront, leaving no surprises later.

Funding my account was a breeze. I had full access to my deposit in one business day, with no mysterious holds or restrictions like the other banks.

Whenever I had a question, Novo’s chat support was responsive and resolved any issues quickly. The knowledge agents even provided proactive tips for managing my account and finances more effectively as a business owner.

Months later, I haven’t incurred a single fee or encountered any of the problems that plagued me at the traditional banks. Novo’s fast lending features have also come in handy for securing financing quickly.

I’m thankful I didn’t write off online banking altogether. Novo has shown me that modern fintech options are vastly better suited to serving my small business needs. I couldn’t be happier with the experience after feeling shortchanged elsewhere.

Novo Vs Navy Federal

Target Audience:

• Novo: Specifically designed for entrepreneurs and small businesses, ensuring a tailored banking experience that aligns with business needs.
• Navy Federal: Primarily serves members of the military, veterans, and their families, which means their services might not be as specialized for business needs.

Digital Experience:

• Novo: Offers a cutting-edge, mobile-first platform that’s intuitive and user-friendly, making banking tasks seamless for business owners.
• Navy Federal: While they provide online and mobile banking, their platform might not be as streamlined or business-centric as Novo’s.

Account Fees:

• Novo: Prides itself on transparency with no hidden fees, focusing on keeping costs low for businesses.
• Navy Federal: While they offer competitive rates, there might be fees associated with certain services or account types.

Business Integrations:

• Novo: Seamlessly integrates with various business tools and software, enhancing financial management and operations.
• Navy Federal: Being a more traditional credit union, they might not offer the same level of integration or flexibility for modern businesses.

Accessibility:

• Novo: Being an online bank, Novo ensures 24/7 accessibility from anywhere, catering to the dynamic needs of entrepreneurs.
• Navy Federal: While they have physical branches and offer online services, they might not provide the same level of round-the-clock convenience as Novo.

Novo Vs Bank Of America

Target Audience:

• Novo: Tailored specifically for modern entrepreneurs and small businesses, ensuring features directly align with their unique needs.
• Bank Of America: A traditional bank catering to a broad audience, from individuals to large corporations, which may dilute their focus on small business-specific needs.

Digital Experience:

• Novo: Provides a cutting-edge, mobile-first platform optimized for the modern business owner, ensuring a seamless digital banking experience.
• Bank Of America: While they offer online and mobile banking, their platform may not be as intuitive or business-centric as Novo’s.

Fee Structure:

• Novo: Emphasizes transparency with no hidden fees, aiming to keep costs minimal for businesses.
• Bank Of America: Can have various fees associated with their business accounts, and while some can be waived, they might not be as straightforward as Novo’s structure.

Business Integrations:

• Novo: Offers robust integration with a variety of business tools and software, streamlining financial management for businesses.
• Bank Of America: As a larger, traditional bank, they might not provide the same depth of integration or flexibility tailored for today’s businesses.

Customer Support:

• Novo: Known for responsive and dedicated support tailored for businesses, understanding the unique challenges of entrepreneurs.
• Bank Of America: While they have a vast customer service infrastructure, it might not be as personalized or agile as Novo’s.

Innovation and Adaptability:

• Novo: Being a newer, online bank, Novo is agile and often quick to adapt to the changing needs of businesses and industry trends.
• Bank Of America: As a well-established institution, they might be slower to innovate or adapt to the rapidly evolving landscape of digital banking.

Bank of America vs Navy Federal Credit Union

Target Audience:

• Navy Federal: Specifically caters to members of the military, veterans, and their families, ensuring services align with their unique needs.
• Bank Of America: A traditional bank serving a broad audience, from individuals to large corporations.

Branch Presence:

• Navy Federal: Has a limited number of branches, primarily located near military bases or in areas with a significant military presence.
• Bank Of America: Boasts a vast network of branches and ATMs nationwide, making it accessible in many regions.

Fee Structure:

• Navy Federal: Often offers competitive rates and fewer fees, especially for members who meet certain criteria.
• Bank Of America: Can have various fees associated with their accounts, though some can be waived based on account balance or other factors.

Loan Offerings:

• Navy Federal: Provides specialized loan products tailored for military members, such as VA loans.
• Bank Of America: Offers a broader range of loan products for the general public, including mortgages, auto loans, and personal loans.

Customer Support:

• Navy Federal: Renowned for its personalized customer service, focusing on the needs of military members and their families.
• Bank Of America: Provides extensive customer service, but it might not be as specialized or personalized as Navy Federal’s.

Digital Experience:

• Navy Federal: Offers online and mobile banking tailored for its members, with features beneficial for those stationed overseas.
• Bank Of America: Provides a comprehensive digital banking platform with a wide range of online services suitable for a diverse clientele.

Account Types:

• Navy Federal: Offers accounts with benefits specifically for military members, such as early paydays.
• Bank Of America: Provides a broader range of account types for various financial needs, from basic checking to wealth management.

Membership Requirements:

• Navy Federal: Requires affiliation with the military, Department of Defense, or related entities for membership.
• Bank Of America: Open to the general public without specific membership requirements.

Alright, Let’s Wrap This Up

So, after diving deep into the banking rabbit hole, guess who comes out shining like a diamond? Yep, it’s Novo. And honestly, I’m not even surprised. Why? Let me spill the tea.

First off, they’re buddies with Middlesex Federal Savings. Fancy, right? It’s like hanging out with the cool kids in the banking world. No sneaky fees hiding in the shadows and a bunch of perks that make you go, “Why didn’t I switch sooner?”

Now, I’ve played around with a few platforms, and let me tell ya, Novo is like that easy-to-use app on your phone that you can’t live without. Bank of America and Navy Federal? They’re alright, but next to Novo, they’re like those side characters in a movie. And don’t even get me started on Novo’s customer support. It’s like having a personal assistant who actually knows what they’re doing.

To put it bluntly, Novo is the real MVP here. I’ve had smoother rides with them than my morning coffee routine. And if you ever have a question, their website is like the Google of banking. Most times, you won’t even need to chat with anyone.

So, if you’re still on the fence, just jump over to Novo’s side. Your business will thank you, and you might even get a few bragging rights.