Grasshopper Bank Business Checking Review 2022
Tricia has nearly two decades of experience in commercial and federal government lending. Her expertise is highlighted throughout small business loan content on Fit Small Business.
This article is part of a larger series on Business Banking.
For businesses that want an online fee-free, interest-earning business checking account, Grasshopper Bank is highly recommended. It comes with a free Visa debit card offering 1% cash back for online and in-store signature-based purchases, and it supports unlimited transactions and free payment transfers through automated clearing house (ACH) and incoming wires.
Grasshopper Bank doesn’t accept cash deposits and has no brick-and-mortar branches, but you can make quick check deposits through its mobile app. At present, the bank limits itself to business checking products, lending, and fintech solutions. If those services fit your needs, then consider opening a business checking account with Grasshopper Bank.
Grasshopper
What We Like
- No monthly fee
- Up to 1% annual percentage yield (APY)
- 1% cashback on debit card
- Hassle-free online account opening
What's Missing
- Lacks physical locations
- Cash deposits not accepted
- No savings and investment products
Features
- Free Visa debit card with cash back rewards
- 24/7 online and mobile banking
- Send customized digital invoices
- Integrates with Autobooks, QuickBooks, and your preferred accounting software
- Unlimited and instant check deposits via its mobile app
- Unlimited free ACH and incoming wire transfers
How Grasshopper Bank Stacks Up With Its Competitors
APY | Cash Deposit Fee | ATM Fee | Minimum Opening Deposit | |
|---|---|---|---|---|
 Innovator Business Checking | 0.50% APY Up to $10,000; 1% APY $10,000+ | None; does not accept cash deposits | Fee-free withdrawals at 37,000 MoneyPass and 8,500+ SUM ATMs | None |
 Business Checking | 1.01% | Fee-free via MoneyPass and Allpoint networks | Unlimited domestic ATM fee reimbursements | $100 |
 Business Checking | 1.5% | $4.95/transaction via Green Dot retail locations | Free at MoneyPass locations; $2.50 for non-network | None |
*Bluevine is a business fintech platform backed by Federal Deposit Insurance Corp. (FDIC)-insured Coastal Community Bank.
When Grasshopper Bank Is a Good Fit
- Businesses that make online and in-store purchases via debit card regularly: Its Visa debit card and 1% cash back for debit purchases are why this bank is among our lists of the best banks for startups and leading small business checking accounts.
- Startups that want more savings on their checking accounts: Apart from its cash back offerings, Grasshopper Bank is ideal for startups because it requires no monthly fees, no opening deposit, and no minimum balance.
- E-commerce businesses whose needs are fulfilled by an online-only bank: Grasshopper Bank allows its customers to deposit checks instantly and create personalized digital invoices through its mobile app.
- Businesses doing frequent ATM withdrawals: Grasshopper allows fee-free withdrawals at 37,000 MoneyPass and 8,500-plus SUM ATMs
When Grasshopper Bank Is Not a Good Fit
- Businesses that need cash deposits: Grasshopper Bank is a digital-only bank and doesn’t have a facility that accepts cash deposits. Chase Bank and Bank of America are great alternatives as both have many brick-and-mortar branches and ATMs around the country that can accept cash deposits.
- Businesses that want to grow their funds through business savings and business investment products: Grasshopper Bank currently limits its offers to lending products. Axos Bank and U.S. Bank are better options for fund growth since they promote business savings, business certificates of deposits (CDs), and business money market accounts.
- Business owners looking to earn a higher APY: If your account balance reaches over $10,000, Grasshopper Bank gives out a 1% APY. However, Bluevine offers a higher interest rate at 1.5% APY, provided certain conditions are met.
Grasshopper Innovator Bank Business Checking Overview
Innovator Business Checking | |
|---|---|
Required Opening Deposit | None |
Required Balance Minimum | None |
Monthly Fee | None |
Transaction Limit Before Fees | None |
ACH Fees | None |
Wire Transfer Fees | Free incoming wire fees |
ATM Fees | Fee-free withdrawals at 37,000 MoneyPass and 8,500+ SUM ATMs |
Cash Deposit | None; unlimited check deposits through the app for free |
APY | 0.5% APY (balances up to $10,000) 1% APY (for balances over $10,000) |
Open an Account |
Innovator Business Checking | |
|---|---|
Debit Card | Free Visa debit card |
Software Integrations | QuickBooks, Autobooks, and any preferred accounting software |
Customer Service | Contact: (888) 895 9685 for customer support, Email: support@grasshopper.bank, Click: LiveChat for Client Services |
Other Products Available | Lending products (SBA loans), API Banking |
Open an Account |
Grasshopper Bank Innovator Business Checking Requirements
Visit Grasshopper Bank to open a business checking account. You’ll need to provide your personal information, such as name, email address, mobile number, and address. For legal entities, an employer identification number (EIN) and business address are required.
Find more information on how to open a business checking account from our guide to opening a business bank account. A downloadable checklist is provided to help you.
Grasshopper Bank Innovator Business Checking Features
Grasshopper Bank’s Business Checking account offers interest, a visa debit card with rewards, and access to digital tools and Small Business Administration (SBA) loans.
Interest-bearing Account
For a balance of more than $10,000 in your checking account, you can earn 1% APY. If you have less than $10,000, you earn 0.5% APY. You also save more as Grasshopper Bank has no monthly fees and no required minimum opening deposit.
Visa Debit Card With Rewards
A free Visa debit card is provided with your Grasshopper Bank Business Checking account. It’s convenient, secure, and also entitles you to a 1% cashback on your online and in-store signature-based purchases.
Online and 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 wires are available. Download the banking app via the App Store and Google Play.
Digital Tools Access
You can pay bills seamlessly using ACH and send personalized invoices for faster payment collection. Grasshopper Bank lets you use Autobooks, QuickBooks, or any preferred accounting software to automate your bookkeeping. It also allows you to set user permissions, ensuring more secure transactions. In addition, the bank has business online banking guides to help you manage your transactions.
SBA Loans
Grasshopper Bank provides SBA loans to small businesses and startups with competitive terms and lower down payments. A variety of financing options are available for acquisitions and expansions, real estate and construction, partner buyout, succession planning, and debt refinancing. Access to banking specialists is open to business owners.
Other Banking Products
Grasshopper Bank offers the following solutions for startups and commercial businesses:
- Lending: Flexible funding for venture capital and private equity. Grasshopper has General Partner Term Loans, Commercial Real Estate Lending, and Yacht Lending solutions.
- Fintech: Grasshopper Bank delivers [application programming interface] API Banking in partnership with Treasury Prime.
Grasshopper Bank Innovator Business Checking Pros & Cons
| PROS | CONS |
|---|---|
| No monthly maintenance fees, minimum balance requirement, and initial deposit requirement | No physical branches |
| 1% APY for balances over $10,000 | No account opening bonus |
| Fee-free withdrawals at 37,000 MoneyPass and 8,500+ SUM ATMs | Does not accept cash deposits |
Grasshopper Bank’s business checking is a great banking product that doesn’t require monthly fees, initial deposits, or minimum account balance. If your balances reach more than $10,000, you earn 1% APY. You can also benefit from fee-free withdrawals at MoneyPass and SUM ATMs. Note that Grasshopper Bank is a digital-only bank and can’t accept cash deposits. No account bonus is given when you open an Innovator Business Checking account.
Alternatives To Grasshopper Bank Innovator Business Checking
Grasshopper has an excellent business checking account but for businesses that need to deposit cash, a bank with physical locations is required. If earning a higher interest rate and maximizing your business funds are your main objectives, there are other banks you can check out.
Here are three alternative options to consider:
- Chase: Best for businesses that need to deposit cash regularly and would be better served by a bank that has physical locations. Chase also offers no fees for cash deposits of up to $5,000 every month.
- Bluevine: Best for business owners aiming to earn higher interest for their business checking accounts. Bluevine offers 1.5% APY, provided conditions are met.
- Axos: Best for startups that want to take advantage of investment and savings products to grow their business funds.
Bottom Line
Grasshopper Bank Innovator Business Checking is optimal for small businesses and startups wanting the conveniences a digital bank offers and fee-free interest-bearing accounts. You can benefit from unlimited transfers and cash back rewards from its free debit card. If your business isn’t reliant on transacting with traditional bank branches and depositing cash, Grasshopper is suitable. As your business grows and you need more funding, you can take advantage of the SBA loans it offers.
