Grasshopper Bank Review: Free Business Bank With 1.51% APY

Last Updated on November 19, 2022 by Harrison Brown
9.2/10 (Expert Score)
Product is rated as #2 in category Business Banking
9.2Expert Score
Top-notch bank for small business owners

Grasshopper Bank is an excellent option if you want a bank that caters specifically to small businesses. It offers free business banking, which is perfect for entrepreneurs who are just starting. With notable features like a high-interest checking account, cashback debit card, and unlimited free transfers, Grasshopper Bank makes it easy to manage your business finances. However, one downside is that it does not have any physical locations, so you'll have to do all your banking online or through the mobile app. Finally, if you are a business that relies heavily on cash, specifically cash deposits, this bank probably is not for you.

Features
9.7
Fees
9.4
Support
8.4
Positive
  • High APY Savings Account
  • Cashback Debit Card:
  • No Monthly Fees
Negatives
  • No 24/7 Support
  • No Cash Deposits
  • Online Only

Overview

Monthly fee:$0/mo
Minimum Opening Deposit:$100
APY:1.51%
Transactions:Unlimited
ATMs:45,000+

Who Is It For?

  • Entrepreneurs, freelancers, and small business owners who need a low-cost banking solution
  • Online-only businesses that don't deal with cash payments or deposits

What Is It?

What Is Grasshopper Bank?

Grasshopper Bank is a financial institution that provides digital banking solutions to small businesses and entrepreneurs. It offers a variety of features that are perfect for entrepreneurs and early-stage businesses, such as a high-interest checking account, cashback debit card, and unlimited free transfers.

The bank was founded in 2019 and now holds approximately $300 million in assets. It is FDIC insured and offers its services exclusively online or through its mobile app.

The bank does offer other services for sectors like venture capital, fintech, and startups that need features like API capabilities, but we are only going to talk about its small business bank account in this review.

Pros & Cons

Pros & Cons Of Grasshopper Bank

Positive
  • High APY Savings Account: Earn 1.51% APY on your Grasshopper Bank savings account balance.
  • Cashback Debit Card: Earn unlimited 1% cashback on all debit card purchases.
  • No Monthly Fees: No monthly or overdraft fees are associated with your Grasshopper Bank account.
  • Unlimited Transactions: You can make an unlimited number of transactions with your Grasshopper Bank account without incurring any fees.
Negatives
  • No 24/7 Support: The bank's customer service is only available during business hours on weekdays.
  • Online Only: Grasshopper Bank has no physical locations, so you'll have to do all of your banking online or through the mobile app.
  • No Cash Deposits: You cannot make cash deposits into your Grasshopper Bank account, so it's best for online-only small businesses.

Features

Top Grasshopper Bank Features

Fee-Free Business Bank Account

You can open a Grasshopper business bank account with no monthly fees, minimum balance requirements, and overdraft fees. This digital checking account also provides unlimited fee-free transactions, so you can make as many deposits and withdrawals as you need without incurring any fees.

Grasshopper Checking Account
Grasshopper Checking Account

Cashback Debit Card

Grasshopper Bank's cashback debit card offers unlimited 1% cashback on all purchases, so you can earn rewards just by using your card for everyday expenses. There are no limits on how much cashback you can make, and the cashback rewards will be automatically deposited into your account each month.

Virtual Debit Cards

Grasshopper Bank offers virtual debit cards that can be used for online purchases or to make payments to vendors. These cards are free to create, and there are no monthly fees. You can also set spending limits and expiration dates on your virtual cards to help control your finances.

45,000+ Free ATMs

Grasshopper Bank has partnered with over 45,000 ATMs worldwide, so you can withdraw cash for free at any of these locations. You can use out-of-network ATMs, but you can be charged a fee when withdrawing.

Flexible Financing Solutions

Grasshopper Bank offers a variety of small business financing options to help you grow your business. You can apply for lines of credit, term loans, and merchant cash advances. The bank also offers SBA-backed loans, which can be used for various purposes, such as expanding your business, buying new equipment, or refinancing debt.

Dedicated Support

Grasshopper Bank has a dedicated support team available to answer your questions during business hours on weekdays. You can contact the support team by phone, email, or live chat. They provide a unique, tailored approach based on the wants and needs of your business.

Automated Bookkeeping

Grasshopper Bank offers automated bookkeeping so you can track your expenses and income without having to do it manually. The bank will categorize your transactions and provide you with monthly statements so you can see where your money is going and help you optimize your cash flow.

Grasshopper Automated Bookkeeping
Automated Bookkeeping

Mobile Check Deposit

You can deposit checks into your Grasshopper Bank account using the mobile app. Just take a picture of the check, and it will be deposited into your account within 1-2 business days.

Digital Invoices

Grasshopper Bank allows you to create and send digital invoices so you can get paid faster. You can also set up recurring payments, so you don't have to worry about manually sending invoices each month.

Seamless Bill Pay

Grasshopper Bank makes it easy to pay your bills online. You can set up one-time or recurring payments, and the bank will automatically deduct the funds from your account. You can also view your payment history and track your spending to see where your money is going.

Fees

Grasshopper Bank Fees

Monthly Fee:$0.00/mo
Overdraft Fees:No
ACH Transfer:$0.00
Returned Check:$0.00
In-Network ATM Withdraw:$0.00
Debit Card Replacement:First Free, then $5/card
Foreign Transaction Fees:No
Wire In (Domestic):$0.00
Wire Out (Domestic):$10.00
Wire In (International):$5.00
Wire Out (International):$25.00


Security

Grasshopper Bank Security

One of the biggest concerns for any business owner is the safety of their finances. Grasshopper Bank takes numerous measures to ensure that your funds are safe at all times. The bank employs state-of-the-art security features, which help to keep your data and money safe.

Grasshopper Bank is also FDIC insured, meaning that your money is protected up to $250,000 per account. So, if anything should happen to the bank, you will be compensated for your losses.

Contact

How To Contact Grasshopper Bank

Grasshopper Bank's hours are Monday – Friday: 9 am – 11 pm (ET), and it is closed on Saturday and Sunday.

Phone

+1 (888) 895-9685

Email

support@grasshopper.bank

Chat

Access Grasshopper's live chat on it's website.

Compare

How Does Grasshopper Bank Compare?

Pros
Cons
Relay Bank Logo
Relay Bank
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Pros
No monthly fees
No account minimums
Major accounting& payroll integrations
Cons
No lending features
No Cash deposits
No physical locations
Nearside Bank Logo
Nearside Bank
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Pros
No monthly fees
Unlimited 2.2% cash back debit card
Discounts on services like Google Ads, Quickbooks, & more
Cons
No 24/7 live support
Checking account does not earn interest
No physical locations
NorthOne Logo
NorthOne Bank
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Pros
Unlimited fee-free transactions
Major accounting & payroll integrations
24/7 live chat and email
Cons
$10/month fee
Cannot send/receive international wires
No physical locations

Bottom Line

Is Grasshopper Bank For You?

Grasshopper Bank is an excellent option for small businesses looking for a bank that provides services to entrepreneurs and small business owners. It offers a variety of features, such as a high-interest digital checking account, cashback debit card, free incoming wires, and unlimited free transfers. The bank also employs state-of-the-art security measures to keep your data and money safe and secure. Grasshopper Bank is FDIC insured, so you can be assured that your funds are protected up to $250,000 per account.

However, if you are a medium-sized or larger company, consider a different bank that can offer you more robust services. Additionally, if you require 24/7 customer support or need to make cash deposits into your account, there are better banks than Grasshopper Bank for your business.

FAQ

Grasshopper Bank FAQ

Is Grasshopper a real bank?

Yes, Grasshopper is a real digital bank specializing in providing banking services to small businesses. The bank is an FDIC member, meaning your deposits are protected up to $250,000.

How big is Grasshopper bank?

Grasshopper Bank has approximately $300 million in assets as of late 2022.

Where is Grasshopper bank have its headquarters?

Grasshopper Bank is headquartered in New York, NY.

Grasshopper Bank Review: Free Business Bank With 1.51% APY
Grasshopper Bank Review: Free Business Bank With 1.51% APY
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