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Grasshopper Bank, launched in 2019, is an FDIC-insured digital bank that caters to small businesses, startups, venture capital, and private equity firms. It offers a high-yield business checking account with no fees, transaction limits, or overdraft charges. Grasshopper also provides SBA loans and other business loans for construction, acquisitions, and debt consolidation. One standout feature is the 1% cash back on qualifying debit card purchases, a rarity in business checking accounts. Grasshopper is particularly beneficial for startups and small businesses looking for a free, online-only checking solution with integrated bookkeeping tools like Autobooks and expert support for navigating growth and investor relations.

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Written by:Casey Newton

Top Benefits

  • Monthly Fees: $0
  • Overdraft Fees: None
  • Wire Transfer Fees: Free for incoming and outgoing transfers
  • ATM Fees: No fees for ATM usage (third-party fees may apply)

Accounts Payable Automation

Grasshopper’s Autobooks feature offers built-in accounting and bookkeeping tools, free for all account holders. This service allows businesses to handle invoicing, track payments, and manage their finances directly from the Grasshopper banking platform, simplifying cash management and accounts payable tasks.

Vendor Payments

Grasshopper allows free and unlimited wire transfers, a significant advantage for businesses handling large volumes of transactions. ACH transfers are also free, and vendors can be paid efficiently with no extra charges. However, businesses dealing heavily with cash transactions may need to explore other options, as Grasshopper doesn’t support cash deposits.

Transactions

Grasshopper’s business checking account offers unlimited transactions without fees or limits. You also earn a high APY based on your balance.

Additionally, account holders can earn cash back on qualifying online and signature-based debit card purchases, with no cap on rewards.

Safety and Security

Grasshopper’s business checking accounts are FDIC-insured up to $250,000. Additionally, the bank offers advanced security measures to ensure the safety of its customers' funds. The digital-first nature of the bank provides a streamlined, secure online banking experience.

Mobile App

Grasshopper’s mobile app allows users to:

  • View account balances and transaction history
  • Send payments via ACH or wire transfer
  • Deposit checks
  • Access bookkeeping tools like Autobooks

The app provides a seamless, user-friendly experience for managing your business finances on the go.

Who Should Use This Business Checking?

Grasshopper is best suited for:

  • Startups looking for expert help with investor relations, pitch decks, and growth strategies.
  • Businesses with high transaction volumes, particularly those that require free wire transfers.
  • E-commerce businesses and companies not dealing in cash, as Grasshopper currently does not support cash deposits.
  • Small businesses needing integrated bookkeeping tools and high-yield savings on their checking balances.

How to Open an Account

You can open a Grasshopper Business Checking account online in just a few minutes. 
The minimum opening deposit is $100. 
To open an account, you will need:

  • Personal details: Name, phone number, date of birth, Social Security number
  • Business details: Business name, industry, address, phone number, and website
  • Information for any owners with a 25% or greater ownership stake in the business

Once your account is funded, there is no minimum balance requirement.
 

Conclusion

Grasshopper Bank’s business checking account stands out for its fee-free structure, high APY, and unique cash-back rewards on debit card purchases. It’s an excellent option for startups and small businesses that don’t deal with cash but need a robust online checking account with bookkeeping integration and free wire transfers. However, if your business relies on cash transactions or requires weekend customer support, you may need to explore alternatives like Axos or American Express Business Checking.