With a high APY, cash back, built-in cash flow, invoicing, and no monthly fees, Grasshopper Bank has an enticing package for small business owners.
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Expert Contributor
Last updated onUpdated
REVIEWED BY
Expert Contributor
| Total Rating |
4.3 |
|---|---|
| Fees & Rates4.5 | |
| Services5.0 | |
| Rewards3.8 | |
| Features4.0 | |
| Eligibility Requirements4.2 | |
| Application Process4.7 | |
| Sales & Advertising Transparency3.2 | |
| Customer Service4.6 | |
| User Reviews3.1 | |
Monthly Fee Range
$0/monthAPY Range
1.00% - 3.10%Account Types Offered
Checking accounts, savings accountsTable of Contents
Grasshopper is an online bank with competitive checking rewards and an almost unrivaled number of lending options. Grasshopper Bank finances term loans, lines of credit, commercial real estate loans, SBA loans — and if you don’t believe us yet, Grasshopper even offers yacht loans.
If you want to have your checking account, savings account, and lending accounts with the same banking institution, Grasshopper Bank is worth looking into.
Grasshopper Bank is one of the few banks to offer both APY and cashback on its checking account, earning it a top spot on our list of best business checking bank accounts. Add in no monthly fees, and it’s easy to see why Grasshopper is a solid small-business banking option.
However, Grasshopper doesn’t accept cash deposits, so businesses that need this feature may want to look elsewhere.
| Services5.0 |
|---|
| Banking Services 5.0 |
| Online Portal & Mobile App 5.0 |
Grasshopper Bank offers a solid rewards checking account and numerous lending services.
Here’s what Grasshopper Bank does offer:
| Rewards3.8 |
|---|
| Quality & Value Of Earned Rewards 3.8 |
Grasshopper is among the few checking accounts with both APY and cash back. Grasshopper offers 1.00% - 1.35% APY — which is highly competitive for an online business checking account — and 1% cash back on qualifying purchases.
Here is the potential APY earning breakdown for the Grasshopper Innovator Business Checking Account:
Clients who have an Innovator Business Savings Account are eligible for an Innovator Money Market Savings Account. An Innovator MMA Savings Account can earn you 1.55% - 3.10% APY.
| Fees & Rates4.5 |
|---|
| Pricing 5.0 |
| Transaction Fees 3.8 |
| Transparency 5.0 |
Grasshopper Bank gets high points for having no monthly fees and few additional fees. The company is also very forthcoming with its fee schedule and transaction limit information.
You will find a large number of miscellaneous fees. While these miscellaneous fees exceed other online bank options, they are truly miscellaneous (like replacing a debit card, expediting a new debit card, etc.), and you likely won’t see these fees often.
| Grasshopper Bank Extra Costs | Price |
|---|---|
| Deposit Item Reversal Fee | $10 |
| Debit Card Replacement | $0 for first replacement (then $5/each additional replacement) |
| Express Mail Fee | $25 |
| Foreign Item Collection Fee | $30 |
| Inactive Account Fee | $5 (applies after 1 year of inactivity) |
| Monthly Fee Range | $0/month |
| Monthly Checking Fee | $0/month |
| Monthly Savings Fee | N/A |
| ATM Fee | $0 |
| Overdraft Fee | $0 |
| ACH Fee | $0 |
| Incoming Domestic Wire Transfer Fee | $0 |
| Outgoing Domestic Wire Transfer Fee | $10 |
| Incoming International Wire Transfer Fee | $5 |
| Outgoing International Wire Transfer Fee | $25 |
| Wire Transfer Fee Start Point | $0 |
| Wire Transfer Fee Range | $0 - $25 |
| Cash Deposit Fee | N/A |
| Foreign Transaction Fee | 0% |
| Excessive Transactions Fee | N/A |
| Stop Payment Fee | $0 |
Grasshopper Bank partners with MoneyPass and SUM ATMs. Enjoy fee-free withdrawals at 37,000+ MoneyPass and 8,500+ SUM ATMs nationwide. While Grasshopper doesn’t charge any ATM fees, you may encounter third-party out-of-network ATM fees.
| Eligibility Requirements4.2 |
|---|
| Eligibility Qualifications 5.0 |
| Eligibility Availability 4.5 |
| Eligibility Transparency 3.0 |
Grasshopper Bank’s eligibility requirements are relatively easy for businesses to meet, though there is a list of high-risk industries that Grasshopper doesn’t work with.
To open an Innovator Business Checking Account with Grasshopper, you’ll need to meet these requirements:
Grasshopper does not support businesses in U.S. territories. These high-risk industries also aren’t eligible for a Grasshopper checking account:
Eligibility requirements for Grasshopper’s lending solutions vary by loan type.
| Features4.0 |
|---|
| Transaction Types Supported 4.0 |
| Transaction Limits 4.0 |
| Standard Banking Features 4.0 |
| Finance Management Features 3.5 |
| Extras 5.0 |
Grasshopper Bank offers competitive checking account features and several built-in tools like invoicing to make managing your business’s finances easier. However, there are no cash deposits or expense tracking.
Here’s a full breakdown of what you can expect from a Grasshopper Bank checking account.
Grasshopper Bank offers APY and cash-back earning potential with the Innovator Business Checking and Innovator Savings accounts.
| Transaction Type | Transaction Limit |
|---|---|
| ACH | $10,000/day |
| ATM Withdrawal | Not disclosed |
| Domestic Incoming Wire Transfer | Unlimited |
| Domestic Outgoing Wire Transfer | Unlimited |
| International Incoming Wire Transfer | Unlimited |
| International Outgoing Wire Transfer | Unlimited |
| Cash Deposit | Not available |
Compared to most online banks, Grasshopper Bank has relatively high transaction limits, which is good for larger businesses. However, there is a limit of up to $3,000 in daily debit spending.
There are also multiple stipulations for mobile check deposits:
You can request limit increases from Grasshopper.
Grasshopper generally processes transactions on the same day if those transactions are submitted within a certain time frame. However, the only guarantee Grasshopper Bank makes is that processing can take up to 3 days.
| Transaction Type | Processing Time Deadline |
|---|---|
| ACH Transfers | 4:30 PM ET |
| Mobile Deposit | 4:00 PM ET |
| Incoming Domestic Wire Transfers | 3:00 PM ET |
| Outgoing Domestic Wire Transfers | 4:30 PM ET |
If you are processing a wire transfer of over $10 million, the transaction will undergo a special process and may take longer.
| Application Process4.7 |
|---|
| Ease & Transparency Of Application 4.0 |
| Application Timeline 5.0 |
| Opening Deposit Requirements 5.0 |
Grasshopper is fairly transparent about its application process and tries to make opening an account easy for business owners. When opening a Grasshopper bank account, you can choose between “Business Banking” or “Startup Banking.” Each type of account gives you access to different features fit for your specific business size.
To open your account, you’ll need a long list of personal and business documentation. These requirements — in addition to some difficulties in finding details about the application process on the Grasshopper website — slightly lowered our score in this category.
Once you have set up your account, you can use virtual debit cards or expedite your physical debit card since they generally take up to 14 days to arrive.
| Sales & Advertising Transparency3.2 |
|---|
| Sales Practices 3.0 |
| Web Presence 4.1 |
Grasshopper is fairly transparent about its fees, application process, and eligibility requirements, but there are several negative customer reviews regarding the company’s sales process.
In addition, there’s hardly any information on Grasshopper’s security information, which is a big issue for a bank. This, paired with a weak social media presence, was factored into our rating.
| Customer Service4.6 |
|---|
| Personal Support 3.8 |
| Self-Service 5.0 |
Grasshopper offers several ways to get in touch, as well as self-service options such as an extensive FAQ section on its website with valuable banking information.
| Grasshopper Bank Customer Service | Availability |
|---|---|
| Phone Support | |
| Email Support | |
| Support Tickets | |
| Live Chat | |
| Dedicated Support Representative | |
| Knowledge Base or Help Center | |
| Videos & Tutorials | |
| Company Blog | |
| Social Media |
According to customer reviews, the customer service at Grasshopper is a mixed bag. Many customers report great experiences, but there are enough complaints about unanswered support tickets and emails that we had to note this in our review.
| User Reviews3.1 |
|---|
| User Feedback 3.0 |
| Review Site Aggregate 3.2 |
Grasshopper receives a 3.2/5 third-party review site aggregate score. Grasshopper Bank also gets an A+ on BBB and is not BBB accredited. Taking this and user feedback into consideration led to our rating of 3.1/5.
While there are many positive reviews about Grasshopper Bank, there are a small number of reviews for Grasshopper Bank compared to other online business banks.
Grasshopper Bank is the only company I’ve seen in a long time that doesn’t have a designated security section on its website for the curious and concerned. However, Grasshopper Bank is FDIC-insured and offers two-factor authentication, fraud monitoring, and bank-level encryption.
They also offer digital card controls from your phone, so you can lock a card on the go.
Grasshopper Bank’s biggest competitor is LendingClub, one of the only other online business checking accounts to offer both APY and cashback with its checking accounts. Both offer multiple loan options, though Grasshopper has more lending types available.
LendingClub’s APY is lower than Grasshopper’s, but the company is more established and has stronger security measures (or at least more transparent ones).
From a perks and features perspective, Grasshopper seems worth it. With APY, cashback, built-in cash flow, invoicing, and no monthly fees, Grasshopper Bank has an enticing package for small business owners. Add potential for lending to the mix, and Grasshopper Bank could be a good choice.
However, despite Grasshopper Bank’s positive customer reviews, there are enough negative ones to give pause.
This doesn’t mean that the pros couldn’t outweigh the cons for your business. The high checking APY is almost unmatched, and the large transaction limits set Grasshopper apart from some of the competition.
If Grasshopper Bank seems like a good fit for your business, carefully read all terms before getting started. You can also check out the top online business bank accounts to find a Grasshopper Bank alternative.
The Merchant Maverick Seal of Approval 🏆
|
Grasshopper Bank
|
|---|
After hours of in-depth research and evaluation, we can confidently recommend this brand to our readers. Get started today and see Grasshopper Bank for yourself.
The Merchant Maverick Seal of Approval 🏆
|
Grasshopper Bank
|
|---|
After hours of in-depth research and evaluation, we can confidently recommend this brand to our readers. Get started today and see Grasshopper Bank for yourself.
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Merchant Maverick’s ratings are editorial in nature, and are not aggregated from user reviews. Each staff reviewer at Merchant Maverick is a subject matter expert with experience researching, testing, and evaluating small business software and services. The rating of this company or service is based on the author’s expert opinion and analysis of the product, and assessed and seconded by another subject matter expert on staff before publication. Merchant Maverick’s ratings are not influenced by affiliate partnerships.
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Our team of experts spends hours on every review so that we can find the best companies to recommend to our readers. Grasshopper Bank made the cut.
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