Mercury vs Novo: Which Free Business Bank Wins?
Mercury and Novo are both free, modern business banks — but they serve different types of businesses. Here's a detailed, honest comparison of fees, APY, features, FDIC coverage, and which one is actually better for your business.
Updated May 2026
| Feature | Mercury | Novo | Holdings |
|---|---|---|---|
| Monthly Fee | $0 | $0 | $0 |
| APY (Checking) | 1.50% | 0.00% | 1.75% |
| FDIC Coverage | Up to $5M | $250K | Up to $3M |
| Built-in Accounting | ❌ | ❌ | ✅ AI Bookkeeping |
| App Integrations | API + Zapier | Stripe, Shopify, QBO, Slack | Growing |
| Virtual Cards | ✅ | ✅ | ✅ |
| Invoicing | ❌ | Via integrations | Coming soon |
| Best For | Funded startups | Integration-heavy small biz | All-in-one banking + accounting |
The Bottom Line
Choose Mercury if you've raised capital and need high FDIC coverage, a polished banking dashboard, and API access. Mercury is built for tech startups and it excels at that.
Choose Novo if you run a small business that relies heavily on apps like Stripe, Shopify, or QuickBooks and want them connected to your bank. Novo's integration ecosystem is its strongest differentiator. Just know you'll earn 0% interest.
Consider Holdings if you want higher APY than Mercury (1.75%), better FDIC than Novo ($3M vs $250K), and built-in AI accounting that eliminates the need for QuickBooks entirely — all for $0/month.