Takeaways
- Grasshopper Bank offers digital-first business checking and savings products.
- Grasshopper's business checking requires a minimum opening deposit of $100.
- There are no monthly service charges or overdraft fees on approved accounts
- Grasshopper Bank supports online deposits, funds transfers, and is FDIC-insured.
- Grasshopper Bank serves startups and small businesses with critical checking and savings accounts.
Overall Checking Account Review
Best For: Small businesses, startups, and early-stage companies
What we liked: We love the digital-first approach that Grasshopper Bank has adopted for its suite of small business banking products. The Innovator Business Checking Account offers a generous APY of up to 1.8% with no minimum balance requirement or monthly fees and has a low minimum opening balance requirement of only $100. The setup only takes a few business days, and your account seamlessly integrates with small business accounting solutions.
On Grasshopper’s Website
Innovator Business Checking
Smart Money Rating: 4.9/5
Best For: Small Businesses and Startups
Minimum Opening Deposit: $100
APY: 1.00% – 1.80% (Terms Apply)
Grasshopper Bank, a pioneer in the digital-only banking landscape, offers a convenient and secure banking experience. With no physical branches, all banking services are delivered through an intuitive online platform and mobile app. This modern approach particularly appeals to the rising generation of entrepreneurs and business owners, as it aligns with their digital-first mindset.[1]
Grasshopper Bank offers business checking accounts tailored for business owners who want cutting-edge security and technology. Grasshopper sets itself apart in the banking and fintech industry with no monthly fees, interest-bearing balances, and cash back on debit purchases.
What Is Grasshopper Bank?
Founded in 2019, Grasshopper Bank is an FDIC-insured, fully digital bank headquartered in New York. The institution was established to serve small businesses, startups, and venture-backed firms' unique needs by offering a banking experience free of the friction associated with legacy institutions.
As a digital bank, Grasshopper does not maintain physical branches. Instead, it delivers all banking services through an intuitive online platform and mobile app. The bank's product suite includes business checking accounts, startup-focused banking services, and integration tools designed to simplify financial management. It does offer debit cards but does not offer credit cards but focuses on optimizing the checking experience.
At a Glance: Grasshopper Business Checking
Here is a snapshot of the checking account's features:
- No monthly maintenance fees
- No minimum balance requirement
- 1.00% cash back on qualified debit card purchases
- 1.80% APY on balances above $25,000
- Unlimited ACH transfers and incoming wires
- Free mobile check deposit and bill pay
- FDIC insured up to $125M (terms apply)
- Accounting integrations with popular software like QuickBooks, Autobooks, and Plaid
>> Are your deposits insured? Read more about How the FDIC Works
APY Based on Checking Deposits
Here is a snapshot of the tiered APYs based on the funds in your Grasshopper Innovation Business Checking Account:
| APY | Account Deposits |
|---|---|
| 1.00% | $0.01—$24,999.99 |
| 1.80% | $25,000-$250,000.00 |
| 1.00% | $250,000.01 and more |
Source: Grasshopper Bank Website
What we suggest: Move funds to the Innovator Money Market Savings Account once your funds exceed $25,000 to take advantage of the 3.55%.[3]
How to Open a Grasshopper Checking Account
Opening a business checking account with Grasshopper is entirely digital and typically takes 10 to 15 minutes. The process includes:
1. Completing an online application with basic business and personal details.
2. Fund minimum opening deposit with $100, there are no minimum account balances after your account is active.
3. Start banking and using the free, high-yielding business checking account. With your account, you can accept deposits, wires, and checks.
No credit check is required, but applicants must be U.S.-based business owners with a valid tax ID. If you are not the business's sole owner, additional information may be needed about control persons, such as their personal and financial details and ownership percentages.
Where Grasshopper Bank Shines
Grasshopper Bank's business checking account offers several competitive advantages:
- Low Minimum Opening Deposit – Getting your business off the ground can be challenging. Grasshopper only requires a low minimum balance of $100 to get your checking account set up and active.
- Unlimited Cash Back Rewards – Earning 1.00% cash back on eligible debit card purchases is a rare benefit for business checking accounts. This feature allows business owners to recoup a small percentage of everyday operational spending.
- Generous APY on Deposits – Grasshopper pays up to 1.80% APY on qualified balances exceeding $25,000.[2] This allows businesses to generate returns on cash flow without needing a separate savings account.
- No Fees – There are no monthly service charges, overdraft fees, or minimum balance requirements once your account is open.
- Streamlined Accounting Integrations – Seamless connections to QuickBooks, Autobooks, and Plaid enable users to sync transactions and simplify bookkeeping.
- Mobile Banking Experience – As a fully digital bank, Grasshopper delivers a modern and responsive digital platform with mobile check deposit, bill pay, and real-time transaction tracking and budgeting tools to manage your cash flow.
Where Grasshopper Bank Can Improve
While Grasshopper Bank is well-suited for many small business owners, it may not be the right fit for every business model:
- No Support for Cash Deposits - Grasshopper does not support cash deposits, limiting its utility for businesses with regular cash-based transactions such as retail or hospitality.
- Not Available to All Business Types - At this time, Grasshopper does not offer banking products for those in virtual currency, adult entertainment, gambling, illegal substances, or weapons and firearms industries.
- Limited Customer Support Availability - Customer service is only available from 9 am to 9 pm ET, Monday through Friday. There are no business hours on weekends. Businesses that operate during evenings or weekends may find this restrictive.
Smart Summary
Grasshopper Bank offers a well-designed, free business checking account with perks that are uncommon in traditional business banking, like cash back rewards debit cards and above average interest-earning accounts. It is best suited for businesses that can operate primarily digitally and do not rely on cash deposits. While the lack of in-person support may be a drawback for some, this account's combination of fintech and generous rewards makes it a top pick for entrepreneurs seeking a streamlined and cost-effective banking solution.
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(1) Civic Science. Online-Only Banks are Gaining Ground with Gen Z. Last Accessed May 19, 2025.
(2) Grasshopper Bank. Small Business Checking. Last Accessed May 19, 2025.
(3) Grasshopper Bank. Innovator Savings. Last Accessed May 19, 2025.
