Grasshopper Bank is highly recommended for businesses that want an online, fee-free, interest-earning business checking account. It lets you earn up to 2.25% annual percentage yield (APY) uncapped on balances ranging from $25,000 to $250,000.
It comes with a free Visa debit card and offers unlimited 1% cash back for qualified purchases if you meet the $10,000 monthly average balance. It supports unlimited transactions and free payment transfers through automated clearing house (ACH) and incoming domestic wires. On top of that, you get free payment and invoicing software, Autobooks, to manage your cash flow better.
Pros:
- No monthly fee
- Earn up to 2.25% annual percentage yield (APY)
- Unlimited 1% cash back on qualified debit card purchases
Cons:
- No physical locations
- Cash deposits not accepted
- $100 minimum opening deposit
Features
- Free Visa debit card with cash back rewards
- 24/7 online and mobile banking
- Unlimited free ACH and incoming domestic wire transfers
- Physical and virtual debit cards
- Integrates with QuickBooks and your preferred accounting software
- Autobooks software for digital invoicing and online payments
- Accelerator checking and savings account with 4.0% APY
- $125 million FDIC insurance for Accelerator Checking
- Commercial real estate (CRE) and Small Business Administration (SBA) loans
How Grasshopper Bank Stacks Up With Its Competitors
APY | Cash Deposit Fee | ATM Fee | FDIC Insurance | |
|---|---|---|---|---|
 Innovator Business Checking | Tiered; up to 2.25% | None; does not accept cash deposits | Up to $250,000 | |
 Business Checking | N/A | None; does not accept cash deposits | Up to $3 million
Mercury is a fintech company, not an FDIC-insured bank. Deposits in checking and savings accounts are held by our banking services partners, Choice Financial Group and Evolve Bank & Trust ®; Members FDIC. Deposit insurance covers the failure of an insured bank. Certain conditions must be satisfied for pass-through insurance to apply.
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Visit Mercury
Mercury is a fintech platform backed and FDIC-insured by a supporting bank partnership with Evolve Bank & Trust and Choice Financial Group.
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 Standard Checking | 1.5% on qualifying balances up to $250,000 | $4.95 (Green Dot) or $1 plus 0.5% of deposit (Allpoint+ ATM) | Up to $3 million | |
Visit Bluevine
Bluevine is a fintech platform backed and FDIC-insured by a supporting bank partnership with Coastal Community Bank.
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When Grasshopper Bank Is a Good Fit
- You use your debit card for online and in-store purchases regularly: Using Grasshopper Bank’s Visa debit card earns you unlimited 1% cash back on qualified purchases if you meet the $10,000 average monthly balance.
- You’re a startup seeking more savings: Grasshopper Bank is one of our leading banks for startups since the bank’s Innovator Business Checking account earns an uncapped interest of up to 2.25%. Further, you can earn up to 4.0% APY when you open an Accelerator Checking and Savings account and maintain a balance greater than $50,000.
- You want to maximize an integrated free payment and invoicing software: Grasshopper is on our list of the best online business banks since it provides Autobooks for free, allowing customers to create professional invoices quickly and accept payments by credit card, debit card, and ACH transfer. It’s also why this bank is included in our roundups of the top small business checking accounts and leading banks for self-employed professionals.
- You want more protection for large business deposits: Grasshopper Bank lets you access an FDIC insurance coverage of $125 million when you open an Accelerator Checking account.
- Your business uses QuickBooks accounting software: Grasshopper Bank is one of our top-recommended bank accounts that integrate with QuickBooks since it has integrated free payment software.
When To Consider Grasshopper Bank Alternatives
- Your business is cash-reliant: As a digital-only bank, Grasshopper Bank cannot accept cash deposits. We recommend Chase for its nationwide brick-and-mortar branches and ATMs that accept cash deposits. Read our review of Chase business checking to learn which account matches your financial needs.
- You’re looking to open certificate of deposit (CD) accounts: Although Grasshopper offers a savings account, it does not provide CDs. Check out our Live Oak business savings review for more information on high-yield CD accounts.
- You’re a freelancer, solopreneur, or small business owner seeking tax assistance tools and reserve accounts: Grasshopper doesn’t offer tax preparation tools and subaccounts, whereas Lili offers a Tax Optimizer feature to set aside tax income automatically. It also provides reserve accounts where you can segregate your business funds. Our review of Lili business checking can help you decide if it fits the bill, and you can read our Grasshopper vs Lili business checking comparison to see how the two stack up against each other.
For additional options, you can check out our list of the best small business checking accounts.
Grasshopper Innovator Bank Business Checking Overview
Grasshopper Bank Innovator Business Checking Requirements
You must visit Grasshopper Bank’s website to open a business checking account. You need to be 18 or older and a US citizen or permanent US resident with a verifiable address in one of the 50 states or Washington, D.C.
Businesses in the following industries aren’t allowed to open an account:
- Adult entertainment
- Gambling
- Illegal substances
- Virtual currency
- Weapons and firearms
Legal entities are required to provide the following company information:
- Type of legal entity
- Legal name of entity
- Employer identification number (EIN)/tax ID number (TIN)
- State of registration
- Month/year business was established
- Company description, phone number, and address
Individuals who have 25% or more ownership (directly or indirectly) of the business must provide beneficial owner information.
Part of the Grasshopper Bank business checking requirements is that applicants/owners/authorized signers/control person must provide the following personal information:
- Legal name
- Job title
- Percentage of ownership
- Physical and email address
- Phone number
- Date of birth
- Social Security number/TIN
See our article on how to open a business bank account for guidance. A downloadable checklist of documents typically required upon account opening is provided to help you.
Grasshopper Bank Innovator Business Checking Features
Interest-bearing Account
Balances from $25,000 to $250,000 earn 2.25% APY with no cap on earnings. You also save more, as Grasshopper Bank’s Innovator Business Checking has no monthly, ACH, or incoming domestic wire fees.
Interest earnings are tiered as listed below:
- Up to $24,999.99: 1.51% APY
- $25,000 to $250,000: 2.25% APY
- Above $250,000: 1.51% APY
Physical and Virtual Debit Card
Grasshopper Bank’s Innovator Business Checking account provides a free Visa debit card. It takes around 14 days for the card to be delivered to your mailing address, but you can create and instantly issue virtual debit cards for contactless payments or online purchases while waiting for your physical card.
Team members can be issued virtual cards to control spending by setting limits and managing categories and merchants.
Unlimited 1% Cash Back Reward
You can participate in the cash back program if you maintain an average balance of $10,000 or more per month in your Innovator Business Checking account. All qualified online and in-store signature-based purchases entitle you to unlimited 1% cash back.
Corporate Cards
Grasshopper partners with Ramp, a leading financial services company, to provide small and medium-sized businesses with a corporate card based on referral. Venture capital and private equity management companies can contact their Relationship Manager if they’re interested in applying for a Ramp card. Learn more about Ramp’s features and pricing from our Ramp review.
Online & Mobile Banking
Grasshopper Bank lets customers apply for an online account in five minutes. You can also make instant check deposits through its mobile app. Unlimited transfers through free ACH and incoming domestic wires are available. You can visit the bank’s website to view online banking guides to help you manage your transactions, from ACH payment and bill pay to external transfers and loan payments.
The Grasshopper Bank mobile app has excellent ratings. On the App Store[1], it shows a 4.3 rating from around 90 reviews, while on Google Play[2], it has 4 stars from nearly 50 reviews.
Reviewers praised the app for its ease of use in account monitoring and performing wire transfers. However, some complained that mobile deposits take a week to be available, whereas in other banks, it takes only two to three days.
Digital Tools Access
You can pay bills seamlessly using ACH and send personalized invoices for faster payment collection. Also, Grasshopper Bank offers Autobooks, integrated as a free payment and invoicing software with your business checking account. It also lets you use QuickBooks or any preferred accounting software to automate your bookkeeping.
What’s more, Grasshopper Bank allows you to set user permissions, ensuring more secure transactions. It also partners with Plaid to provide customers with convenient and secure access to modern payment apps, such as Venmo.
Startup Banking Services
Grasshopper Bank is a great partner to startups, providing exclusive access to a selected community of investors from the bank’s network. This network can help startups gain fundraising support.
The bank also offers Accelerator Checking, a digital account that has access to FDIC insurance coverage of up to $125 million. The other features of this account include:
- Free physical and virtual debit cards with unlimited 1% cash back
- Free bill pay, domestic ACH, and wire transfers if the balance is $25,000 or greater
- APY earnings of up to 4.0% for balances above $50,000 when paired with an Accelerator Savings account
- No monthly fees and minimum balance requirements
Customer Service
Clients can contact Grasshopper’s client services team by calling (888) 895-9685, emailing www.support@grasshopper.bank, texting (646) 760-6048, or clicking customer service chat on the bank’s website. Customer support is available from Mondays to Fridays, 9 a.m. to 11 p.m. ET.
Other Grasshopper Bank Business Products
Grasshopper offers solutions for small and midsized businesses (SMBs), startups, and commercial businesses.
Grasshopper Bank is an SBA Preferred Lender providing SBA loans, specifically SBA 7(a) and SBA 504 loans, to small businesses and startups, with competitive terms and low down payments. Various financing options are available for acquisitions and expansions, real estate and construction, partner buyouts, succession planning, and debt refinancing. Access to banking specialists is open to business owners.
Learn more about SBA loans and their types, rates, and requirements.
Venture capital and private equity firms can access flexible funding through Grasshopper’s general partner term loans, working capital lines of credit, and CRE lending. Grasshopper also offers yacht loans ranging from $1 million to $10 million and up to 20-year terms with competitive fixed and adjustable rates.
Grasshopper delivers API Banking in partnership with Treasury Prime. Startup software-as-a-service (SaaS) providers, business-to-business (B2B) marketplaces, and manufacturers can send and receive payments safely and manage their finances from their current platforms.
Grasshopper provides remote deposit capture, positive pay (ACH and check), and foreign wire transfers to streamline business operations.
Grasshopper Bank Business Checking User Reviews
On Trustpilot, the bank has a 3.5 rating from more than 70 reviews. Users who left a positive Grasshopper Bank business checking review said that the bank provides cash back rewards and a great interest rate. They also mentioned that account creation was simple, easy, and fast and that the bank has no service charges and a helpful customer support team.
However, some reviewers complained about the lack of notice and explanation for account closures, including the freezing of funds. A few reported experiencing locked accounts due to suspicious activity.
Frequently Asked Questions (FAQs)
Yes, Grasshopper business checking is legitimate, and the online bank’s deposits are FDIC-insured up to $250,000 per depositor.
The required opening deposit for a Grasshopper Innovator Business Checking account is at least $100.
Yes, Grasshopper offers an Accelerator Savings account but does not have money market accounts and CDs.
The Grasshopper Innovator Business Checking account offers tiered interest, where balances from $25,000 to $250,000 earn 2.25% APY, and balances up to $24,999.99 and above $250,000 earn 1.51% APY.
No, Grasshopper Bank does not offer checks. However, you can order them from Harland Clarke, Deluxe, or other third-party vendors.
Bottom Line
Grasshopper Bank Innovator Business Checking is optimal for small businesses wanting a fee-free account with uncapped interest. You can benefit from unlimited transfers, cash back rewards, and Autobooks, a free payment and invoicing software.
However, if your startup business funds are greater than $250,000, we recommend opening an Accelerator Checking account to access more FDIC protection and bundling it with an Accelerator Savings account to maximize an APY of up to 4.0%.
