Grasshopper Bank Review: Free Business Checking With Cash-Back Rewards
Grasshopper offers cash back on spending and a solid APY, but customers can't deposit cash.
Overview
The bottom line:
Grasshopper Bank’s free business checking account offers unlimited 1% cash back on qualified debit card purchases, a rare feature among checking accounts. It's a great choice for small businesses focused on fast growth.
Bank account details
Monthly fee
$0
APY
1.55%
Earn 1.00% APY on balances up to $24,999 and on balances greater than $250,000. Earn 1.55% APY on balances of $25,000 to $250,000.
With $25,000 min. balance for APY
Bonus
N/A
Pros & Cons
Pros
Unlimited 1% cash back on qualified debit card purchases.
Earn up to 1.55% APY.
No monthly fees, transaction fees or overdraft charges.
Free, built-in bookkeeping and invoicing software.
Free incoming domestic wires; low fees on other wire transfers.
Cons
Can’t deposit cash.
$100 minimum opening deposit.
No weekend support.
Bank account comparison
Compare to other bank accounts
4.8
NerdWallet rating
at Grasshopper Bank, Member FDIC
5.0
NerdWallet rating
4.7
NerdWallet rating
Monthly fee
$0
Monthly fee
$0
Monthly fee
$0
APY
1.55%
With $25,000 min. balance for APY APY
1.30%
With $0 min. balance for APY APY
N/A
Need more options? Check our picks for best business bank accounts of 2025
Grasshopper Bank is an FDIC-insured digital bank that launched in 2019 and caters to small businesses, startups and venture capital and private equity firms. Grasshopper offer a free high-yield business checking account, as well as SBA loans (the bank is an SBA preferred lender) and business loans
Grasshopper’s free online business checking account has no overdraft fees, transaction limits or minimum balance requirements (beyond the initial deposit). Account holders get a strong APY, too: Earn 1.00% APY on balances up to $24,999 and on balances greater than $250,000. Earn 1.55% APY on balances of $25,000 to $250,000.
Beyond that, Grasshopper customers earn 1% cash back on qualifying debit card purchases — a rare feature among business checking accounts
Additional perks include Autobooks, an accounting and bookkeeping service that is built into Grasshopper’s online banking platform and free for all account holders. Startup founders can also get help raising capital and navigating growth stages. Grasshopper’s experts will help with accelerator applications and pitch presentations.
Have questions or need help with your account or application? You can reach customer service via phone, live chat, email or text message from 9 a.m. to 11 p.m. EST, Monday through Friday.
Grasshopper business checking is best for:
- Startups that want help navigating investor meetings and raising capital.
- Businesses that can benefit from built-in bookkeeping and invoicing tools.
- Small businesses that handle a large volume of incoming wire transfers (these are free with Grasshopper).
- E-commerce businesses and other companies that don't deal with cash.
Grasshopper currently doesn't allow cash deposits. If your business uses a lot of cash, consider Axos Basic Business Checking
» MORE: Best banks for startups
Grasshopper business checking at a glance
| Monthly fee | $0. |
| Minimum opening deposit | $100. |
| APY | 1.00% or 1.55%. |
| Transactions | Unlimited. |
| Bonus | N/A |
How to open a Grasshopper Business Checking Account
You can open a Grasshopper Business Checking Account online in just a few minutes. You’ll need to link an existing bank account to fund your new account. The minimum opening deposit is $100. After that, there's no minimum balance requirement.
What you need to open an account
- Personal information: Name, phone number, date of birth and Social Security number.
- Business details: Name, industry, physical address, phone number and website.
- When and where your business was established, including the state where it's registered.
Note: You also need to provide personal information for any owners with a 25% or greater ownership stake in the business.
Where Grasshopper business checking stands out
Unlimited 1% cash back: Cash-back rewards are typically reserved for business credit cards cash-back business credit card
Tailored support for startups: Fast-growing startups can tap Grasshopper experts for help with everything from navigating investor opportunities to perfecting their pitch deck or applying to coveted accelerator programs. Grasshopper's “office hours” for startup founders is added value you won’t find at many other banks.
High-yield business checking: Grasshopper accountholders can earn up to 1.55% APY, depending on your balance, making it one of the best high-yield business checking accounts on the market.
Grasshopper's APY structure is more complicated than similar accounts: Earn 1.00% APY on balances up to $24,999 and on balances greater than $250,000. Earn 1.55% APY on balances of $25,000 to $250,000. But Grasshopper doesn't cap your ability to earn interest, while competitors like Bluevine Business Checking and American Express® Business Checking* don't earn interest on balances above $250,000 and $500,000, respectively.
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If you want to earn even more interest and don't need access to features like checks or a debit card, consider our picks for best Nerdy Tip
No fees and free wires: Most online business checking accounts
Where Grasshopper business checking falls short
You can’t deposit cash: Not every business deals in cash, but those that do won’t find their needs met with Grasshopper. The digital-only bank doesn't support cash deposits at this time. Several other online banks do have this functionality, though, allowing customers to deposit currency via Green Dot (for a fee) or directly through an ATM.
Businesses that deal with cash on the regular should look for an account that offers easy cash deposits, with no caps or fees, such as Axos Basic Business Checking or the nbkc Business Account
No weekend customer support: Grasshopper gets a lot right on the customer service front. It offers extended hours (9 a.m. to 11 p.m. EST) and four ways to get support (phone, chat, email and text). Unfortunately, that service is available only Monday through Friday. Even brick-and-mortar banks typically offer some form of support on the weekends.
Want a free online business checking account with around-the-clock support? Consider American Express® Business Checking, which offers 24/7 live customer service (and earns 1.30% APY on balances up to $500,000).
*Accounts offered by American Express National Bank. Member FDIC.