Grasshopper Business Checking review

Our verdict

Our verdict

Grasshopper offers a high-yield business checking account called Innovator Business Checking. The account earns up to 2.25% APY, depending on your balance. An even sweeter perk is the unlimited 1% cashback rewards on online and in-store signature-based purchases. The account features digital invoices, automated bookkeeping, cash flow management tools and accounting software integration. You can also enjoy unlimited transactions, virtual debit cards, no monthly maintenance fees, no overdraft fees and no minimum balance requirements. However, like other online accounts, Grasshopper doesn't accept cash deposits, making it a better option for businesses that don't deal in cash, and you'll need $100 to open the account.

Best for: Online businesses that want to earn interest and cashback rewards.

Pros

• Up to 2.25% APY
• Unlimited 1% cashback rewards
• Unlimited free ACH and incoming wire transfers
• No monthly maintenance fees

Cons

• $100 opening deposit
• No cash deposits

4.6

★★★★★

Finder rating

Go to site on Grasshopper's secure site

APY

Up to 2.25%

Fee

$0 per month

Minimum deposit to open

$100

Who is Grasshopper best for?

Grasshopper‘s business checking account features unlimited free ACH and incoming wire transfers, making it a solid choice for online businesses that move money around frequently. You won’t be charged for any monthly maintenance fees, overdrafts or ACH transfers.

It’s also best for businesses looking for an account that earns rewards, as you’ll earn up to 2.25% APY and unlimited 1% cash back when you maintain a balance of at least $10,000 a month.

Businesses looking for an account with bookkeeping features can also benefit from this account due to the digital invoices, automated bookkeeping and cash flow management tools. It also integrates with Quickbooks, Plaid and other accounting software.

But since Grasshopper doesn’t have a way to accept cash deposits currently, the Innovator Business Checking account is a better fit for online-based businesses.

What we like about Grasshopper

Grasshopper is a member of the FDIC, so accounts are insured up to $250,000. The checking account has few fees, and two of the best points are the unlimited cashback rewards and high APY.

Unlimited cashback rewards

Grasshopper offers unlimited 1% cash back on online and signature-based purchases. To qualify for the rewards program, you must maintain an average monthly balance of $10,000 or more, and the account must be active and in good standing.

Cashback rewards are most often found with credit cards, and checking accounts that offer rewards often cap the amount you earn in cash back per year or per month. Grasshopper stands out as there’s no cap on how much you can earn.

Compared to other business rewards checking accounts, like Oxygen, it earns less in cash back. But it makes up for it by offering a higher interest rate.

High APY

Earn 2.25% APY on balances of $25,000 to $250,000. The APY drops to 1.51% APY on balances under $25,000 and greater than $250,000.

Even though you’ll earn less with the 1.51% APY, it’s still a solid deal, because no matter your balance, you’re still earning something.

But you might not want to keep a balance close to or beyond the $250,000 as you’re only FDIC insured up to that amount.

Expertise and loan assistance

As a new business owner, Grasshopper offers startup support to help you scale your businesses. There’s a feature called “Office Hours” just for startups, which offers business owners industry expertise — however, there isn’t much information on the site on how this works.

Grasshopper is also an SBA Preferred Lender, offering SBA 7(a) and SBA 504 loans, with the SBA 7(a) loan being the most popular SBA loan type.

Where Grasshopper falls short

While Grasshopper is often called a “free” checking account — due to the lack of monthly fees — it requires an opening deposit of at least $100. If you’re looking for a business account with no opening deposit, there are plenty of other free business checking accounts without one.

Grasshopper also doesn’t have its own ATM network. While you won’t get charged for using a MoneyPass ATM, a fee may be applied by the owner of the ATM. There are also no ATM reimbursements.

Grasshopper‘s fees and access

Type of fee	Fee details
Monthly service	$0
Opening deposit	$100
ATMs	Domestic: Varies by ATM International: Varies by ATM
Debit card fees	Free withdrawals at 37,000+ MoneyPass and 8,500+ SUM ATMs Foreign transactions: Varies by ATM Card replacement: First one is free, then $5 after that
Overdraft or nonsufficient funds	$0
Wire transfers	Incoming Domestic: $0 International: $5 Outgoing Domestic: $10 online, or $25 International: $25
Other fees	ACH transfer: $0 Returned ACH transfer: $0 Returned check: $0 Stop payment: $0 Expedited debit card: $35 Foreign item collection: $30 Inactive account: $5 per month after 1 year with no transactions

Compare Grasshopper to other business checking accounts

Narrow down top business checking accounts by fees, opening deposits and interest. Select Compare on up to four accounts to see them side by side.

Customer experience

Launched in 2019, the Grasshopper Bank is pretty new to the scene — especially compared to big banks like Wells Fargo and Chase. Grasshopper doesn’t have a Better Business Bureau profile to date and has very few reviews on Trustpilot, garnering a so-so 3-star rating.

Negative reviews commonly complain their accounts were closed without notification, and for many, seemingly no reason soon after the account was set up. And like many other online banks, most reviews complain of poor communication or struggles to contact a customer representative.

Positive reviews are just as common, though. Many are pleased with the user-friendly platform, unlimited wire transfers, simple signup process and help with applying for business loans.