Grasshopper Bank Business Checking Review 2023
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.
Grasshopper Bank is highly recommended for businesses wanting an online, fee-free, interest-earning business checking account. It lets you earn a 1.5% annual percentage yield (APY) uncapped on all balances with no minimum requirement. It comes with a free Visa debit card, offering 1% cash back for online and in-store signature-based purchases. It also 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.
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 financial technology (fintech) solutions. If those services fit your needs, then consider opening a business checking account with Grasshopper Bank.
What We Like
- No monthly fee
- 1.51% annual percentage yield (APY)
- 1% cashback on debit card
- Hassle-free online account opening
Drawbacks
- Lacks physical locations
- Cash deposits not accepted
- $100 minimum opening deposit
- No savings and investment products
Features
- Free Visa debit card with cash back rewards
- 24/7 online and mobile banking
- Integrates with, QuickBooks and your preferred accounting software
- Autobooks software purchased by Grasshopper for all small business banking customers for digital invoicing and online payments
- Unlimited and instant check deposits via its mobile app
- Unlimited free ACH and incoming domestic wire transfers
How Grasshopper Bank Stacks Up With Its Competitors
APY | Cash Deposit Fee | ATM Fee | Minimum Opening Deposit | |
|---|---|---|---|---|
 Innovator Business Checking | 1.51% | None; does not accept cash deposits | Fee-free withdrawals at 45,000 MoneyPass and SUM network ATMs | $100 |
 Business Checking | 1.01% | Fee-free via MoneyPass and Allpoint networks | Unlimited domestic ATM fee reimbursements | $100 |
 Business Checking | 2.0% | $4.95 per transaction via Green Dot retail locations | Free at MoneyPass locations; $2.50 for nonnetwork | 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 with regular online and in-store purchases via debit card: Using its Visa debit card earns you unlimited 1% cash back on qualified purchases.
- Startups that want more savings on their checking accounts: Apart from its cash back offerings, it’s ideal for startups because it requires no monthly fees, no minimum balance, and provides 1.51% APY uncapped on all balances.
- Ecommerce 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 online and mobile app.
- Small businesses that want to maximize an integrated free payment and invoicing software: Grasshopper Bank is on our list of 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 lists of the best banks for startups and leading small business checking accounts.
- Businesses seeking a variety of financing options: Grasshopper Bank offers SBA loans, commercial real estate lending, venture capital, and private equity lending. For former Brex customers searching for financing solutions and digital integrations, Grasshopper Bank is included in our best Brex cash management account alternatives.
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.
Grasshopper Innovator Bank Business Checking Overview
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 Innovator Business Checking account offers interest, a visa debit card with rewards, and access to digital tools and SBA loans.
Interest-Bearing Account
You’ll earn 1.51% APY on all balances with no minimum and no cap on your earnings. You also save more as Grasshopper Bank’s Innovator Business Checking has no monthly fees.
Visa Debit Card With Rewards
A free Visa debit card is provided with your Grasshopper Bank Business Checking account. You can also create and issue virtual debit cards for contactless payments or online purchases. It’s convenient, secure, and entitles you to a 1% cashback on your online and in-store signature-based purchases.
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.
There are no reviews for the Grasshopper Bank app on the App Store and few reviews on the Play Store (5 out of 5). Positive feedback centered on its simple interface and ease of use. Currently, there are no negative reviews.
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.
Free Autobooks
Grasshopper Bank provides Autobooks for free, integrated as a free payment and invoicing software with your business checking account. Small businesses can take advantage of financial tools to get paid quickly and issue professional invoices to their customers.
SBA Loans
Grasshopper Bank is an SBA Preferred Lender providing SBA loans, specifically SBA 7(a) Loans and SBA 504 Loans to small businesses and startups with competitive terms and low down payments. A variety of 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.
Startup Banking Services
Grasshopper Bank is a great partner to startups as it provides growth-stage lending solutions and strategic support by helping them navigate multiple fundraising and qualifying investors. The bank also assists with accelerator applications, pitch practice, and deck reviews.
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, Fund Capital Call Lines of Credit, Management Company Working Capital Lines of Credit, 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 and minimum balance requirement | No physical branches |
| 1.51% APY for all balances | No account opening bonus |
| Fee-free withdrawals at 45,000 MoneyPass and SUM network ATMs | Doesn’t accept cash deposits |
Grasshopper Bank’s Innovator Business Checking is a great banking product that doesn’t require monthly fees or a minimum account balance. You can earn 1.51% APY on all account balances and also benefit from fee-free withdrawals at MoneyPass and SUM network 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.
Grasshopper Bank User Reviews
| PROS | CONS |
|---|---|
| Quick and easy account opening application process | Account was locked and flagged by the Risk team, no explanation was given by the bank when contacted |
| Ability to create virtual debit cards | Account closure despite submitting all required documents |
Grasshopper Bank has a 2 out of 5 rating on DepositAccounts under Lending Tree. A user rated it positively for its fast account opening and virtual debit card feature. However, another user complained that the bank locked an account flagged as risky and remains uncommunicative with the reason. Another negative review was due to account closure despite the complete submission of document requirements.
Grasshopper Bank reviews are few given that it’s relatively new.
Alternatives to Grasshopper Bank Innovator Business Checking
If depositing cash, 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 is best for businesses needing to deposit cash regularly. It offers no fees for cash deposits of up to $5,000 every month.
- Bluevine is best for business owners aiming to earn higher interest for their business checking accounts. It offers 2.0% APY, provided conditions are met.
- Axos is best for startups that want to take advantage of investment and savings products to grow their business funds.
To learn how Grasshopper Bank’s Innovator Business Checking account stacks up against another popular provider, read our Grasshopper vs Lili Business Checking comparison.
Bottom Line
Grasshopper Bank Innovator Business Checking is optimal for small businesses and startups that want 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.
