Our Take
4.8
NerdWallet rating
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.
Grasshopper Innovator Business Checking Account
Checking
Member FDIC
Monthly fee
$0
APY
1.80% With $25,000 min. balance for APY
Bonus
$300 Requirements to qualify
Learn more
at Grasshopper Bank, Member FDIC
Pros & Cons
Pros
- Unlimited 1% cash back on qualified debit card purchases.
- Earn up to 1.80% 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.
How does Grasshopper Bank compare?
Bluevine Business Checking Deposits are FDIC Insured | Basic Business Checking Member FDIC | |
|---|---|---|
at Grasshopper Bank | at Bluevine | at Axos Bank® |
Monthly fee $0 | Monthly fee $0 | Monthly fee $0 |
APY 1.80% With $25,000 min. balance for APY | APY 1.50% With $0 min. balance for APY | APY N/A |
Bonus $300 Requirements to qualify | Bonus $300 Requirements to qualify | Bonus $400 Requirements to qualify |
Full Review
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 for construction, acquisitions and debt consolidation, among other financing needs.
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 $25,000 and on balances greater than $250,000. Earn 1.80% 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 that adds extra value.
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 — which includes free, unlimited cash deposits through the Allpoint and MoneyPass networks plus unlimited refunds on ATM fees.
» MORE: Best banks for startups
Grasshopper business checking at a glance
Monthly fee | $0. |
Minimum opening deposit | $100. |
APY | 1.00% or 1.80% . |
Transactions | Unlimited. |
Bonus | $300. |
How to open a Grasshopper Innovator Business Checking Account
You can open a
Grasshopper Innovator 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, but Grasshopper account holders can earn 1% back on qualifying debit card purchases (online and signature-based ones), with no cap on how much they can earn. Want maximum cash back? Combine forces with a cash-back business credit card to earn rewards on all of your business spending.
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
1.80%
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 $25,000 and on balances greater than $250,000. Earn 1.80% 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.🤓 Nerdy Tip
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 business savings accounts, which earn up to 4.01% APY.No fees and free wires: Most online business checking accounts have relatively few fees — that’s part of their appeal. Grasshopper is no different in this regard; customers don't pay for ACH transfers, incoming wires, overdrafts or ATM usage (third-party fees may apply, though).
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.
Learn more
at Grasshopper Bank, Member FDIC
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American Express® Business Checking
NerdWallet Rating
5.0
Bonus Amount
30,000 points
Requirements to qualify
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