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If you’re a small business owner seeking a reliable checking account for your finances, Grasshopper Bank offers a business checking account designed just for that. They provide various perks and services tailored for small businesses. Below, you’ll find details on the benefits of Grasshopper Bank accounts and their services to help you choose a business bank account that suits your needs.
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Overview of Grasshopper Bank
Grasshopper Bank operates solely online, catering to small businesses, startups, and other enterprises. They provide services such as checking accounts and lending options.
Grasshopper Bank is FDIC-insured and protects deposits up to $250,000 per depositor, per account type. They also offer enhanced FDIC insurance up to $125 million through an insured cash sweep account that distributes your money across multiple banks.
While Grasshopper Bank doesn’t have 24/7 customer support, their phone service is available Monday to Friday from 9 a.m. to 9 p.m. ET. Weekend phone support isn’t provided.
Grasshopper Business Bank Pros & Cons
Pros
- No monthly fees
- Unlimited transactions
- Large ATM network
- Interest-earning checking account
- Visa debit card with cash-back rewards
- Interest compounds daily
- FDIC-insured
Cons
- $100 minimum opening deposit required
- No overdraft protection offered
- Entirely online banking experience
- Doesn’t reimburse out-of-network ATM fees
- Cash-back debit card features may be challenging to qualify for
Features
- Free Visa debit card with cash-back rewards
- 24/7 online and mobile banking
- Unlimited free ACH and incoming domestic wire transfers
- Offers both physical and virtual debit cards
- Integrates with QuickBooks and other accounting software
- Autobooks software for digital invoicing and online payments
- Accelerator checking and savings account with 3.3% APY
- $125 million FDIC insurance coverage for Accelerator Checking
- Offers Commercial Real Estate (CRE) and Small Business Administration (SBA) loans
Grasshopper Business Checking Is Best For:
- Startups seeking assistance with investor meetings and capital raising
- Businesses looking for integrated bookkeeping and invoicing tools
- Small businesses processing a high volume of incoming wire transfers (which are free with Grasshopper)
- E-commerce businesses and other companies that don’t handle cash transactions
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Types of Grasshopper Accounts & Services Offered
Grasshopper Bank’s business checking accounts vary based on your small business’s size and type. The Grasshopper Innovator Business Checking Account is available to any U.S. citizen or permanent resident, excluding certain industries like firearm sales or gambling.
This account can be bundled with an Innovator Money Market Account, offering up to 3.3% APY (annual percentage yield).
For startups with Seed to Series A funding, Grasshopper provides the Accelerator Business Checking Account, similar to the Innovator account, but with added benefits such as a higher interest rate on the linked money market account and unlimited wire transfers if specific conditions are met.
Larger businesses can opt for the Forward Checking Account, which, while lacking the perks of the other accounts, includes advanced treasury management, analysis billing, and MX business financial management.
Key Grasshopper Innovator Business Account Features & Benefits
Competitive Grasshopper Bank Interest Rates
The Grasshopper Innovator Business Checking Account offers an attractive APY ranging from 1.00% to 2.00%. It’s rare for checking accounts to offer interest, making this a strong option. Considering the national average interest rate for checking accounts is just 0.08%, this account’s APY is significantly above average. However, there are other high-yield checking accounts with even higher rates.
No Grasshopper Checking Monthly Maintenance Fees
Grasshopper’s Innovator Business Checking Account has no monthly service fees, appealing to those who prefer to avoid paying to keep an account open. While a minimum opening deposit of $100 is required, there are no penalties if your balance drops below this amount. For a completely fee-free checking account, you should look elsewhere.
Interest-Bearing Account
- Balances from $25,000 to $250,000 earn an impressive 2.00% APY with no cap on earnings. Grasshopper Bank’s Innovator Business Checking has no monthly, ACH, or incoming domestic wire fees.
Interest earnings are tiered as follows:
- Up to $24,999.99: 1.00% APY
- $25,000 to $250,000: 2.00% APY
- Above $250,000: 1.00% APY
Physical & Virtual Debit Card
Grasshopper Bank’s Innovator Business Checking account includes a free Visa debit card. Although delivery takes about 14 days, you can create and instantly issue virtual debit cards for online purchases and contactless payments in the meantime.
Team members can also receive virtual cards, allowing you to control spending by setting limits and managing categories and merchants.
Unlimited 1% Cash Back Reward
With an average balance of $10,000 or more per month in your Innovator Business Checking account, you can join the cash-back program. Eligible online and in-store signature-based purchases earn you unlimited 1% cash back.
Corporate Cards
Grasshopper partners with Ramp, a leading financial services company, to offer small and medium-sized businesses corporate cards through referrals. Venture capital and private equity management companies can contact their Relationship Manager to apply for a Ramp card.
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Grasshopper Bank Customer Service
You can contact Grasshopper’s client services team via phone at (888) 895-9685, email at www.support@grasshopper.bank, text at (646) 760-6048, or through customer service chat on their website. Support is available Monday through Friday, from 9 a.m. to 11 p.m. ET.
Is Grasshopper Bank Trustworthy?
When evaluating banks and credit unions, we provide their Better Business Bureau (BBB) scores to show how they address customer concerns.
Grasshopper Bank holds a B- rating from the BBB, primarily due to its lack of response to two customer complaints. Despite this, the bank hasn’t been part of any recent controversies.
How to Open a Grasshopper Business Checking Account
You can open a Grasshopper Business Checking Account online in just a few minutes. Simply link an existing bank account to fund your new account. While the minimum opening deposit is $100, there’s no minimum balance requirement afterward.
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
- Please specify when and where your business was established, including the registration state
- Kindly provide personal information for owners holding a 25% or greater ownership stake in the business
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Grasshopper Bank Business Checking User Reviews
On Trustpilot, Grasshopper Bank boasts a 3.5 rating from over 70 reviews. Positive feedback highlights the bank’s cash-back rewards, excellent interest rates, straightforward account creation process, absence of service charges, and responsive customer support team.
Grasshopper Bank Alternatives – Grasshopper Bank Review
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Bluevine was designed to cater to small businesses that often feel underserved by traditional banks. Bluevine currently offers a single banking solution: a business checking account that combines the features of checking and savings accounts.
When you sign up, there are no monthly fees or minimum balance requirements, even from the start. You can perform unlimited incoming and outgoing transactions without any additional charges. Bluevine’s business checking account also functions as a high-yield savings account, allowing you to earn interest on your balance. Read the full Bluevine review.
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Lili Bank, a digital banking and accounting service, provides FDIC-insured accounts through Choice Financial Group. Lili’s all-in-one account enables businesses to manage payments, send and receive invoices, streamline accounting, and automate tax preparation.
Lili’s account features no hidden fees, overdraft fees, or minimum deposit or balance requirements. Domestic wire transfers are free and unlimited. Lili offers a savings account with a competitive interest rate of 4.15% APY, higher than Grasshopper’s 1.00-2.24% APY.
Lili also includes smart bookkeeping features, such as instant transaction categorization and automated reports. Lili automates tax savings throughout the year and generates expense reports and pre-filled tax forms for tax preparation.
Its invoicing software allows users to create and send customizable invoices, accept payments instantly, track payments, and send reminders.
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Novo is an online-only banking platform ideal for businesses seeking affordable business checking accounts. Novo’s business checking account has no monthly fees or minimum opening deposit requirements and allows unlimited free transactions.
It also offers up to $7 in monthly ATM fee refunds, built-in budgeting tools, and instant access to Stripe payouts.
Novo provides valuable features like reserve accounts, invoicing tools, and business discounts at no extra cost. The platform mainly benefits businesses using Stripe for payment processing, as the Novo Boost feature offers faster access to Stripe payouts.
Grasshopper Bank Review – FAQs
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Bottom Line – Grasshopper Bank Review
Grasshopper Bank Innovator Business Checking is ideal for small businesses seeking a fee-free account with uncapped interest. Enjoy unlimited transfers, cash-back rewards, Autobooks, and free payment and invoicing software.
For startup businesses with funds exceeding $250,000, consider opening an Accelerator Checking account for enhanced FDIC protection. Pair it with an Accelerator Savings account to maximize your APY up to 3.3%.
