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Both Novo and BlueVine offer free, digital-only business control accounts that are excellent for various types of small businesses. The biggest diffe

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Both Novo and BlueVine offer free, digital-only business control accounts that are excellent for various types of small businesses. The biggest difference between the two is that BlueVine’s checking account is interest-bearing. This factor gives BlueVine a slight edge over Novo.

However, if you are not interested in an interest-bearing checking account, or your company regularly withdraws money from an ATM, Novo is a strong choice as the company will refund all ATM fees at the end of the month. None of the companies ask for cash deposits, but there are external fees. With Novo you will have to buy money orders to deposit cash. BlueVine cash deposits can be made through Green Dot retail sites for $ 4.95 per deposit.

Here is a summary of both Novo and BlueVine and what each is best for:

  • Novo*: Best for businesses that want a free, only digital check account with heavy ATM usage with all ATM fees being refunded monthly
  • BlueVine*: Best for businesses that want a free, digital-only, interest-bearing checking account or a business that also needs a credit line product

* Providers are financial technology (fintech) platforms backed by and Federal Deposit Insurance Corp. (FDIC) secured by a supportive banking partnership (Middlesex Federal Savings for Novo and Coastal Community Bank for BlueVine).

Novo vs BlueVine quick comparison

* Providers are fintech platforms backed by a supporting banking partnership and insured by FDIC (Middlesex Federal Savings for Novo and Coastal Community Bank for BlueVine).

When to use Novo

You should choose Novo Business Control over BlueVine in the following scenarios:

  • Your business regularly withdraws cash from ATMs because Novo will refund all ATM fees at the end of the month.
  • You are not interested in an interest-bearing check account or getting lending products from your business check account provider.
  • You want free cash deposits but are not worried that you need a physical place to deposit them and can receive the cash as a money order. Otherwise you will have to buy the money orders to deposit cash.

When to use BlueVine

You should choose BlueVine Business Control over Novo in the following scenarios:

  • Your company wants to earn interest on its checking account and meets one of the two requirements set aside by BlueVine to earn interest.
  • You need a line of credit because BlueVine is our choice for the best line of credit for small businesses.
  • You can restrict ATM withdrawals to the MoneyPass network, where it is free, and you can restrict cash deposits due to the fees involved.

When to use an alternative

  • If you regularly need to deposit cash into your account or need a full service bank, you may want to consider a bank with a physical location, such as Bank of America, Chase or US Bank.
  • Your company wants to keep reserves in a savings or a deposit account (CD). You may want to consider Live Oak Bank, which offers savings, CDs and other lending products such as commercial real estate, Small Business Administration (SBA) and loans from the United States Department of Agriculture (USDA).

Novo vs BlueVine: Business Control Accounts

Both Novo and BlueVine offer only one type of check account. Both are digital accounts only that are completely free of charge for daily transactions. All BlueVine outgoing wires and Novo international outgoing wires included small fees.

Neither company is asking for cash deposits, but both have fees involved. With Novo you will have to buy money orders to deposit cash. Money orders can be purchased at banks or the US Postal Service (USPS) locations. With BlueVine, you have to deposit cash through Green Dot retail sites, which charge $ 4.95 per deposit.

Otherwise, both accounts are free, have no minimum required balances, and have no transaction fees.

Novo vs BlueVine Account Overview

Novo requires an opening deposit of $ 50, but once the account is opened, it does not have a minimum balance required. BlueVine has no minimum deposit or balance requirement.

The biggest benefit BlueVine has is its interest-bearing account. You can earn 1.5% APY on balances up to $ 100,000 if you meet one of two qualifying criteria:

  • Spend $ 500 or more per month with BlueVine Business Debit Mastercard issued by Coastal Community Bank
  • Receive $ 2,500 per month in customer payments to your account via ACH, bank transfer, mobile check deposit, or directly from a merchant payment processing provider

Meanwhile, Novo’s biggest benefit is refunded ATM fees at the end of each month, which means you are not connected to any particular ATM network. BlueVine has a partnership with MoneyPass for free ATM withdrawals, but BlueVine charges $ 2.50 for non-network ATM usage in addition to ATM provider costs.

Both providers offer secondary accounts along with your checking account. BlueVine offers up to two sub-accounts, while Novo Reserves allows you to use up to five reserve accounts. Both allow you to set aside funds that can be earmarked for tax, profit, payroll and other expenses.

Novo vs BlueVine account fees

There are no monthly fees or transaction fees for Novo or BlueVine business audits. None of the companies ask directly for cash deposits, but there are secondary fees involved. You will need to purchase a money order to deposit cash through Novo. With BlueVine, you have to make deposits through Green Dot retail sites, which charge $ 4.95 per deposit.

Novo vs BlueVine account example scenario

* The USPS charges up to $ 1.95 for money orders up to $ 1,000. Individual bank charges for money orders may vary.

If you are a company that has a large number of cash deposits per month, you need to choose a provider that offers free cash deposits. You may want to consider a small business provider’s account with a physical location.

When choosing between Novo and BlueVine, you should calculate the interest earned each month and deduct fees for cash deposits and off-network ATM usage. If you make more interest than you spend on fees, BlueVine makes sense. If your fees are higher than the interest earned, you should choose Novo.

Bottom Line

Both Novo and BlueVine offer outstanding free, digital check accounts for small businesses only. If you want your business checking account to earn interest, BlueVine is the best option as long as your use meets BlueVine’s qualifications. However, if you regularly withdraw money from ATMs, Novo may be your best option. You need to calculate the interest you can earn from a BlueVine account and deduct potential fees to determine if it is right for your business.

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