Mercury vs. Novo — Which Is the Best Online Banking Platform?

Mercury 4.9 stars vs Novo 4.7 stars.

Every startup’s banking needs are different. Both Novo and Mercury offer digital banking solutions, no monthly fees, and no minimum balance requirements. However, the platforms have some key differences that may make one of them better suited to your business needs. 

If you’re trying to decide between Mercury and Novo business banking, this guide to Novo vs. Mercury demonstrates how they stack up against each other and which service works better for startups. 

Best Bank for Startups: Mercury

Leverage Mercury’s comprehensive online banking solutions designed to support your startup’s unique needs.

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Mercury vs. Novo: What Sets Them Apart

Rewards

Mercury boasts a 5.46% yield on idle cash and 1.5% cash back on credit card purchases for accounts in good standing. Novo doesn’t offer any rewards or cash back incentives with its services. 

Types of Services Offered

Of the two services, only Mercury offers savings accounts, business credit cards, and venture debt funding options. 

Security

Both platforms offer Federal Deposit Insurance Corporation (FDIC) insurance. However, Mercury boasts checking and savings accounts with FDIC insurance up to $5 million while Novo’s FDIC insurance only covers deposits up to $250,000. 

Mercury vs. Novo: Similarities

No Cash Deposits

Neither Mercury nor Novo support cash deposits. Therefore, any business requiring this feature won’t get that service from either platform.  

No Minimum Balance Requirements

Both Mercury and Novo not only offer free checking accounts, but also no minimum balance requirements to set up your account. 

Third-Party Integrations

Integrations are an important part of building a user-friendly tech stack for your business. Fortunately, both platforms integrate with popular business software solutions such as QuickBooks, Gusto, and Xero. 

Best Online Banking for Startups

Whether you’re early or growth stage, Mercury is the best digital banking solution for startups. 

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Novo vs. Mercury: Customer Reviews

Novo is used by entrepreneurs who:

  • Run small to medium-sized businesses 
  • Require robust invoicing features (e.g., for freelancers or contractors)
  • Don’t need to make cash deposits 

Here are some reviews (from Trustpilot) from verified Novo customers:

“I had wanted a solution for starting up my small business and Novo had everything I needed and then some: invoicing, ACH transfers, [and] integration with other platforms like Square and QuickBooks.”

“[It’s my favorite for online business banking so far. The only knock I have against them is low limits, as we expect to make a high volume of payments in the future to our 1099 contractors.”

“[Novo] lowers the barrier to entry for starting a business. There can be a lot of daunting steps to set one up, Novo does a great job of making banking setup simple and pain-free. Further, the app has useful insights, makes check deposit easy, and the reserves feature is great for organizing and allocating.”

Mercury is used by entrepreneurs who:

  • Run early to growth-stage startups 
  • Want access to funding options in addition to banking 
  • Seeking both a checking and savings account 

Here are some reviews (from Trustpilot) from verified Mercury customers:

“[Mercury is] easy to set up and working well so far. Definitely glad I chose this route for online banking.”

“[Mercury] absolutely needs Zelle. Chase and Wells Fargo both have it, and we relied on it heavily for instant payments. Things have gotten much slower now despite everything else being streamlined at Mercury.”

“There is no better online bank for non-US residents with an entity in the states. Support is super quick. The cash flow of my business had recently [experienced] some hard times and they were able to provide me with funding from one of their partners. It doesn’t get much better than this.”

Novo vs. Mercury: Pricing

There’s no cost to open a business checking account with either Novo or Mercury. However, the two platforms differ in features they offer and their potential fees. Below, you’ll find a brief look at how these two online banking providers stack up against each other. 

Novo Business Checking

Price: Free (Some Fees Apply) 

Notable Features:

  • No monthly or overdraft fees 
  • No minimum balance requirement 
  • Free incoming wire transfers
  • Integrations with several software solutions 

Novo’s business checking account doesn’t charge monthly fees or require a minimum balance to set up. However, the platform lacks several valuable features like cash deposit capabilities and the ability to send outgoing wire transfers.

Mercury Business Banking

Price: Free (Some Fees Apply) 

Notable Features:

  • Checking and savings accounts 
  • No monthly or overdraft fees 
  • No minimum balance requirement 
  • A 5.46% yield through Mercury Treasury 

While you can use the Mercury platform for free, some advanced features may incur fees. These include making mass payments using the platform’s API, exchanging money in non-US currencies, and using Mercury Treasury account management tools.

The Bottom Line

Both Novo and Mercury are decent options for startup banking. However, startups looking for a robust platform with access to a savings account and rewards for idle cash should choose Mercury. 

The Mercury platform offers more features and access to funding options that aren’t attainable with Novo. However, Novo is a great option for small businesses or freelancers looking for extensive invoicing features and a free, basic banking platform. 

Open a business bank account for your startup today with Mercury

Frequently Asked Questions

Is Mercury bank worth it?

Mercury is a great business banking option with no monthly fees and no minimum balance requirements. Best suited to startups, Mercury offers access to funding options, startup-centric features, and rewards for idle cash as well as spending. 

Is Mercury good for freelancers?

Mercury can be used by any US-based business with an Employer Identification Number (EIN). Therefore, freelancers may be better suited to a platform like Novo because it offers extensive invoicing features and no charge to receive wire transfers. 

Is Novo a legit company?

Yes, Novo is a legitimate company that offers business banking services like checking accounts and business debit cards. 

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