Relay vs Novo: Which Business Banking Platform Fits Your Business

Relay vs Novo: Which Business Banking Platform Fits Your Business

If you're comparing Novo and Relay, you've already filtered past the "which business bank has no monthly fee" search. Both platforms offer $0/month standard plans, both connect to QuickBooks and Xero, and both are built for small business owners who want mobile-first banking without the friction of a traditional bank branch.

The comparison narrows to account architecture. Novo's Reserves give you sub-balances inside one checking account, which is useful for budgeting visibility, but every dollar shares a single routing number. Relay gives you up to 20 separate checking accounts, each with its own routing number, meaning your accounting software, your payment platforms, and your invoice routing can each point to a distinct account.

Whether that structural difference matters depends on how you run your money.

Who should choose Relay vs Novo?

Choose Relay if you:

• Need three or more named accounts (eg. when running Profit First, envelope budgeting, AP/AR routing)

• Work with a bookkeeper or accountant who needs per-account ledger visibility

• Want to route specific payment types to specific accounts (sales tax, project escrow, owner draws)

• Are growing past basic checking; approval workflows, sub-accounts, multi-user access

• Accept cash deposits

• Run a business at $100K–$5M revenue

Choose Novo if you:

• Are a true solo operator with a single income stream and no plan to grow

• Don't need to split income across distinct accounts

• Want the simplest possible mobile-first setup

• Prefer integrations with Stripe, Wise, and Shopify

• Don't need accountant-grade ledger separation

A note on freelancers specifically: if you're a 1099 contractor or freelancer with multiple clients, irregular income, and a need to set aside taxes and operating expenses cleanly, Relay is the better fit—not Novo. Novo's Reserves model works for one income stream, and one or two budgeting buckets. The freelancer reality (income from multiple sources, quarterly tax estimates, expense categorization for Schedule C, retirement contribution planning) maps to a multi-account architecture that Novo's single-checking-with-reserves design doesn't deliver.

Novo's strengths are real: no monthly maintenance fees, standard ACH (no per-transaction fee), easy mobile experience, and connections with accounting software. Where the fit breaks down is when your business outgrows a single checking account.

How do Relay and Novo compare at a glance?

^†FDIC insurance available up to $3M for funds deposited via Thread Bank; Member FDIC. Pass-through insurance coverage is subject to conditions*.

What's the architectural difference between Relay's sub-accounts and Novo's Reserves?

Novo's "Reserves" feature is the platform's headline differentiator—but it's worth understanding what Reserves actually are.

Novo Reserves are sub-balances inside one checking account. They share one routing and account number with the main checking balance. To ACH systems, customers, and accounting software, they're invisible—Novo presents one account with internal divisions.

Relay's multiple checking accounts are real separate accounts. Each has its own routing and account number. Each appears as a distinct ledger line in QuickBooks Online and Xero bank feeds. Each can receive payments directly without routing through a primary account first.

For some businesses this distinction doesn't matter—if you have three simple budgeting buckets (Operating, Tax, Profit), Novo's model works fine. For others—Profit First practitioners, businesses routing customer payments to specific accounts, accountant-managed businesses—the structural difference is the whole point.

When does Novo's model work well?

If your banking needs look like this, Novo's model is a clean fit:

• One main checking for receivables and bill pay

• 2–4 internal budgeting buckets (Tax, Profit, Operating Expenses)

• No need to route payments to specific buckets

• No accountant doing per-account ledger work

• You're a solo operator at under ~$250K revenue

• Comfortable with mobile-first banking and email support

This is meaningful coverage—Novo has built a clean product for true solo operators. The headline isn't fake, it's just describing a different product than "20 accounts" suggests.

When does Relay's architecture outperform Novo's Reserves?

Three patterns where Novo's reserves model breaks down:

1. Profit First. The methodology requires visibly separate accounts for the psychological discipline to work. Novo's sub-balances don't deliver that separation; the money is in one pool, allocated by app rules. Relay is the official banking platform of the 500+ Profit First Professionals network—the architectural fit is the reason.

2. Payment routing. If you want vendors to pay invoices into a specific account (tax holding, project escrow, owner draws), Novo can't do it—every payment lands in the main checking balance. Relay's distinct account numbers per sub-account let you route inbound payments to the right destination from the start.

3. Growth headroom. When a Novo customer outgrows the single-account model—typically when adding employees, scaling past $250K revenue, or adopting Profit First—they hit a structural wall. Relay's 20-account ceiling on the $0/month Starter plan means there's no upgrade or platform switch required as the business grows.

What about Brex (since it sometimes comes up in this comparison)?

If you ended up on this page after also reading Brex comparisons, worth knowing: Brex was acquired by Capital One for $5.15B in April 2026 (closed April 7). Brex's qualifying criteria already excluded most traditional small businesses (one of: equity investment, $1M+ revenue, 50+ employees, $500K+ cash, or tech-startup referral). For small businesses comparing fintech options, Brex isn't on the shortlist anymore.

The bottom line

For solo freelancers with simple budgeting needs, Novo's reserves model works. The single-account-with-internal-buckets approach is intentionally simpler, and for businesses that genuinely need that instead of multi-account architecture—Novo is the better fit. The mobile-first experience and standard ACH (no per-transaction fee) are real strengths.

For owners running Profit First, working with accountants, routing payments to specific accounts, or planning to grow past solo, Relay's architecture handles workflows Novo's reserves model can't. When you open an account, the $0/month Starter plan supports 20 separate checking accounts; no paid-tier upgrade is required as the business grows.

Frequently asked questions

Is Relay actually better than Novo for Profit First?

Yes. For Profit First specifically—where the psychological separation of funds is part of the method—the account structure matters. Relay's accounts are real accounts, each with its own routing number. Novo's Reserves are sub-balances within a single account. Relay is also the official banking platform of the Profit First Professionals network.

Can Novo support multiple business accounts?

Novo's Reserves give you budgeting visibility within one checking account. If you need accounts that customers, vendors, or accounting software see as distinct, Novo's Reserves aren't the right tool.

Which is better for a freelancer or solo contractor?

Probably Novo, unless you're running Profit First, working with an accountant on per-account ledgers, or planning to grow past solo. For a true solo with one or two budgeting buckets, Novo's simpler model is the right answer.

Can I switch from Novo to Relay later?

Yes. Open a Relay account, set up your sub-account structure, gradually migrate vendor ACH authorizations, and close the Novo account once everything has moved. Plan for 2–4 weeks of overlap.