Relay vs Novo

Relay and Novo both start at zero a month, but they spend that free entry differently. Relay hands a business twenty separate checking accounts and unlimited users, then raises the savings rate and cash back as you move up its paid tiers. Novo keeps one checking account with no monthly fee, adds invoicing and up to twenty Reserves inside it, and savings interest is absent from what we read. Neither vendor states a country of establishment, and both rely on a partner bank for the actual accounts.

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Both are reviewed in full in our business bank accounts ranking: Relay and Novo.

1. 01

   Twenty accounts against twenty buckets

   Relay's Starter plan includes 20 checking accounts, and Scale raises that to 50, so each purpose can have its own account number. Novo gives you a single checking account and lets you carve it into up to 20 Reserves, which the pack describes as buckets for things like taxes or payroll. Buckets are tidy for budgeting, but they are not separate accounts. If you need to keep client money apart at the account level, Relay is the closer fit.

   Edge: Relay

2. 02

   Where idle cash earns interest

   Relay publishes a savings rate on each plan: 1.19% APY on Starter, 1.87% on Grow and 3.21% on Scale. The better rates therefore sit behind the monthly fee, which is worth knowing before you count on them. Novo's business checking page is silent on savings interest, so there is no rate to set beside Relay's. For a business that keeps a cushion of spare cash, Relay at least gives you a number to calculate with.

   Edge: Relay

3. 03

   What the entry plan costs in a month

   Novo states no monthly fees, no minimums and no transaction limits on its business checking page, and the pitch is that this is the whole account. Relay's Starter is also $0 a month, but its upper tiers are Grow at $30 a month after a 14-day trial, and Scale at $120 a month, shown at a limited-time $90. Relay lets you start free and pay later. Novo asks for no step up, which makes its bill the easier one to predict.

   Edge: Novo

4. 04

   Cash back, and the $5,000 condition

   Relay pays 1% cash back on Starter, 1.25% on Grow and 1.5% on Scale, and every plan allows up to 50 credit and debit cards. Novo's credit card, issued by Continental Bank, pays 2% with a checking balance of $5,000 or more and 1% under that. Novo's top rate is higher, but it comes with the balance requirement. Relay's rate rises with the fee you pay. Which one wins depends on your balance and your monthly card spend, so the result is a tie.

   Depends on the buyer

5. 05

   The bank behind the app

   Relay says it is a financial technology company and not an FDIC-insured bank, with banking services provided by Thread Bank, Member FDIC. Novo Platform Inc. says the same about itself, with services provided by Middlesex Federal Savings, F.A., Member FDIC, and deposits insured up to $250,000. Neither vendor names a country of establishment. Both are fintech front ends, so the partner bank matters more than the app when you check cover and statement access.

   Depends on the buyer

6. 06

   Invoicing, integrations and who answers

   Novo builds invoicing with tracking and reminders into the account, lists more than 40 native integrations including Stripe, Square, QuickBooks, Shopify and Xero, and reimburses ATM fees up to $7 a month. It also offers free standard ACH and free incoming wires. Relay links to QuickBooks and Xero on Starter and describes its customer service as available by email, which will not suit anyone expecting a phone line. For billing customers directly, Novo does more.

   Edge: Novo

Does Relay charge per person on the account?

No, the pricing page lists unlimited users on every plan, Starter included. The fee depends on the tier you pick, not on headcount. Starter is $0 a month, Grow is $30 and Scale is $120, shown at a limited-time $90.

Can Novo pay interest on money left in the account?

Savings interest is not mentioned on Novo's business checking page, so we cannot say it does.

Novo's cash back on its credit card is tied to a checking balance of $5,000 or more, which is a different thing from interest. If interest on idle cash matters, Relay publishes savings rates by plan.

Are Relay and Novo banks in their own right?

No, both describe themselves as financial technology companies, not banks. Relay uses Thread Bank, Member FDIC, and Novo uses Middlesex Federal Savings, F.A., Member FDIC. Novo states deposits are insured up to $250,000, while Relay says the cover rests on funds held with Thread Bank.

• Relay pricing page: tier fees, 20 or 50 checking accounts, savings APY and cash back per tier, unlimited users.
• Relay about page: Thread Bank as the banking partner, email customer service, QuickBooks and Xero links.
• Novo business checking page: no monthly fees or minimums, Reserves buckets, 40+ integrations, invoicing, ATM reimbursement.
• Novo pricing page: Middlesex Federal Savings as partner bank, $250,000 deposit cover, free ACH, card cash back tiers.