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 1.00% 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.
Grasshopper Bank is an online-only bank and doesn’t accept cash deposits, but you can make quick check deposits through its mobile app. Currently, the bank limits itself to business checking accounts, lending products, and financial technology (fintech) solutions.
How Grasshopper Bank Stacks Up With Its Competitors
Cash Deposit Fee
Minimum Opening Deposit
Innovator Business Checking
Tiered; up to 2.25%
None; does not accept cash deposits
Fee-free withdrawals at 45,000 MoneyPass and SUM network ATMs
N/A; does not accept cash deposits
None at Allpoint ATMs
2.0% on qualifying balances up to $250,000
$4.95 per transaction via Green Dot retail locations
None at MoneyPass locations; $2.50 for non-network
*Providers are fintech platforms backed by and Federal Deposit Insurance Corp. (FDIC)-insured through a supporting bank partnership (the partnerships are Choice Financial Group and Evolve Bank & Trust for Mercury and Coastal Community Bank for Bluevine).
To learn how Grasshopper Bank’s Innovator Business Checking account stacks up against another popular provider, read our Grasshopper vs Lili Business Checking comparison.
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 1.00% cash back on qualified purchases if you meet the $10,000 average monthly balance.
- 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 and minimum balance and provides tiered interest rates of 1.51% or 2.25%.
- Ecommerce businesses whose needs are fulfilled by an online-only bank: Grasshopper doesn’t accept cash deposits, so it’s suitable for ecommerce businesses that don’t handle physical cash. While making a cash deposit is currently unavailable, the 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 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 leading banks for startups and top small business checking accounts.
- Businesses seeking various financing options: Grasshopper offers Small Business Administration (SBA) loans, commercial real estate (CRE) lending, term loans, and lines of credit for venture capital and private equity firms. For former Brex customers searching for financing solutions and digital integrations, Grasshopper Bank is part of our best Brex cash management account alternatives.
When Grasshopper Bank Is Not a Good Fit
- Businesses that need to deposit cash: Grasshopper is a digital-only bank with no facility that accepts cash deposits. Chase Bank is an excellent alternative, with many brick-and-mortar branches and ATMs nationwide that can accept cash deposits. Check out our Chase Business Checking review to learn which account matches your financial needs.
- Businesses that want to grow their funds by placing them in other business products: Grasshopper offers only lending products. First Internet Bank is a better option for fund growth since it has business savings, money market accounts, and business certificates of deposit (CDs). Our review of First Internet Bank Business Checking provides detailed product information.
- Businesses looking for ATM fee savings: While it’s free to transact in MoneyPass and SUM ATMs, you can save more with Novo since it reimburses all your ATM fees when you use out-of-network ATMs. Read our Novo Business Checking review to discover how it can benefit your business.
- Freelancers, solopreneurs, and small business owners seeking tax assistance tools and reserve accounts: Grasshopper doesn’t offer tax preparation tools and subaccounts while 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.
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 United States 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
- 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 and 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.
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 is provided to help you.
Grasshopper Bank Innovator Business Checking Features
Grasshopper Bank’s Innovator Business Checking account offers tiered interest, a Visa debit card with rewards and access to digital tools and free Autobooks.
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 and ACH and incoming domestic wire fees.
Interest earnings are tiered as listed below:
- $0.01 to $24,999.99: 1.51% APY
- $25,000 to $250,000: 2.25% APY
- $250,000.01 or greater: 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.
Unlimited 1.00% 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 1.00% cash back.
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 app has good reviews on the App Store1 (4.2 out of 5) and Google Play2 (3.9 out of 5). The positive feedback centered on its simple interface, ease of use, and reliability. However, one user gave a low rating for experiencing glitches, while another stated that their debit card was still unavailable after three months of being an account holder.
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 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.
Clients can contact Grasshopper’s client services team by calling (888) 895-9685, emailing email@example.com, 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 (SMBs), startup, 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 safely send and receive payments and manage their finances from their current platforms.
Grasshopper provides business owners with remote deposit capture, positive pay, and wholesale and retail lock services to streamline business operations.
Grasshopper Bank Business Checking User Reviews
The bank has a 2.9 out of 5 rating on Trustpilot3. Several users who left a Grasshopper Bank business checking review stated that setting up an account was quick and easy after sending specific verification documents.
They also praised the easy-to-use online platform, including its unlimited online wires and smooth fund transfers. Further, the bank was rated positively for providing an outstanding customer service experience. However, some clients gave low ratings because of five-day holds on deposited checks, while others complained about the lack of explanation for their closed accounts.
Grasshopper Bank Innovator Business Checking is optimal for small businesses and startups wanting a fee-free account providing uncapped interest. You can benefit from unlimited transfers, cash back rewards, and Autobooks, a free payment and invoicing software.
If your business isn’t reliant on depositing cash in person, Grasshopper is suitable. As your business grows and you need more funding, you can take advantage of the SBA loans it offers, while venture capital and private equity firms can apply for term loans, lines of credit, and commercial real estate loans.