Grasshopper Bank has become one of the most talked-about digital banks for startups and small businesses. With up to 3.00% APY, unlimited 1% cash back, and no fees, it’s positioning itself as a serious alternative to traditional banks like Chase. But is it the right fit for your business? Grasshopper Bank Review: Pros, Cons,
Digital banking solutions that actually work can be difficult to find for business owners. That’s why Grasshopper Bank is an option worth considering for business owners.
Grasshopper Bank offers a free digital checking account, flexible financing solutions, and an application programming interface (API) available for your own fintech brand. Grasshopper Bank Review: Pros, Cons,
Let’s take a closer look at Grasshopper Bank so you can decide if it is the right option for your banking needs.
What Is Grasshopper Bank?
Grasshopper Bank was founded in 2019. The digital bank serves small businesses, startups, and investors.
As of 2025, the bank currently holds approximately $1.33 billion in assets. With a focus on the innovation economy, Grasshopper Bank offers forward-thinking options for small businesses looking to manage their funds efficiently. Grasshopper Bank Review: Pros, Cons,
Additionally, the bank offers API solutions to fintechs. But we will focus on the digital banking and lending solutions in this review.
What Does It Offer?
Grasshopper Bank has simplified the way small businesses can digitally manage their banking needs. From a frictionless way to apply for a checking account (according to their website you can apply in as little as five minutes!) to free ACH and incoming wire transfers, here’s a closer look at what Grasshopper has to offer.
Digital Checking Account For Business
Grasshopper Bank’s digital checking account for businesses is built to make managing your business’ finances easier. The Innovator Business Checking account has no monthly service fees, and you’ll have the ability to make unlimited free ACH transfers and accept income wires for free. Grasshopper Bank Review: Pros, Cons,
Additionally, you’ll find plentiful rewards for using this account. First, you’ll earn up to 1.35% APY on your balance.
They offer the following rate tiers:
- $0.01 – $24,999.99: 1.00% APY
- $25,000 – $250,000: 1.35% APY
- $250,000 or greater: 1.00% APY
You’ll also earn unlimited 1% cash back when using your free VISA debit card on online and signature-based purchases.
Innovator Money Market Account
If you have funds you want to keep in savings, you can add on the Innovator MMA Savings and earn 3.00% APY on balances of $25,000 or more; otherwise, it earns 1.55% APY. Rates as of January 5, 2026. Grasshopper Bank Review: Pros, Cons,
Marketplace
To help you run your business more efficiently, Grasshopper has a marketplace of special offers from companies that provide services for small businesses.
For example, right now, you can get a free monthly subscription to the accounting software Autobooks. You can also get 25% off a subscription to Slack.
Built-in Digital Tools To Manage Money 24/7
Grasshopper Bank’s digital checking account allows you to send digital invoices, automate bookkeeping, manage cash flow, and even pay bills seamlessly via cheque or ACH.
As a business owner, you will appreciate the opportunity to manage your business’ cash flow directly from a streamlined app.
Flexible Funding Solutions
As a small business or a startup, you have unique funding needs. Grasshopper will work with you to identify the appropriate lending solutions for your small business needs. Grasshopper Bank Review: Pros, Cons,
One option is access to Small Business Administration loans. You can use these funds for acquisitions, expansions, real estate, construction, partner buyouts, succession planning, and debt refinancing.
Other funding opportunities made available through Grasshopper Bank include:
- General Partner loans
- Fund Capital Call lines of credit
- Management Company working capital lines of credit and end-of-life facility
Strategic And Unique Support
Every business has specific needs. If you are pushing to get your startup off the ground, the strategic support offered by Grasshopper Bank provides the extra touches to enhance your banking experience and your business. Grasshopper Bank Review: Pros, Cons,
As a startup, you’ll have access to dedicated support staff who can help you navigate the fundraising challenges. Depending on your needs, you can practise pitches, ask for help determining sales targets, and access deck reviews.
Regular office hours hosted by industry experts can help you take your business to the next level.
Are There Any Fees?
The digital checking account for businesses offered through Grasshopper doesn’t come with any monthly fees. You also won’t be charged any fees by Grasshopper for using the accompanying debit card. However, you may encounter third-party ATM fees if you withdraw cash from an out-of-network ATM. Grasshopper Bank Review: Pros, Cons,
The digital checking account doesn’t have incoming wire fees or outgoing ACH. Plus, no overdraft fees looming over your account.
How Does Grasshopper Bank Compare To Chase And Others?
Grasshopper Bank isn’t the only business checking account out there. Chase is the flagship brick-and-mortar checking account, while Axos offers compelling digital banking products.
If you are looking for an option that allows for easy cash deposits, then Grasshopper Bank likely isn’t the right fit.
A traditional brick-and-mortar bank will likely be more up your alley if you want to deposit cash regularly. Chase Business Complete Banking is a good option if you want access to a more traditional branch experience. Grasshopper Bank Review: Pros, Cons,
If you like the digital banking atmosphere but aren’t sold on Grasshopper, then consider AXOS Basic Business Checking. It offers a free digital bank account for businesses. But you’ll miss out on any APY opportunities. Grasshopper Bank Review: Pros, Cons,
How Do I Open An Account?
Decided that you want to work with Grasshopper Bank? Here’s what you’ll need to get started.
First, gather your personal information. This includes:
- Your name
- Contact details (i.e., email address, mobile number, address)
- Legal entity documents such as EIN and business address
Is It Safe And Secure?
When you store your funds in Grasshopper’s digital checking account, you’ll find peace of mind through enhanced FDIC insurance that protects your funds up to $125 million. Grasshopper Bank Review: Pros, Cons,
Grasshopper Bank also requires two-factor authentication. And offers fraud monitoring, bank-level encryption and security.
Contact
Grasshopper is headquartered at 261 5th Ave, Suite 610 New York, NY 10016. If you need to get in contact, you can email [email protected]. Or you can call 888-895-9685. You can also visit their contact page at Grasshopper.bank/contact.
Other ways to reach out include Twitter @grasshopperbank and LinkedIn @grasshopper-bank.
Customer Service
Grasshopper recently revamped its customer service department, claiming that 85% of calls now receive an answer within 30 seconds.
They’ve earned a 3.9 out of 5 on Trustpilot with over 340 reviews. Positive reviews state that the customer service is helpful and friendly and that it’s easy to set up and use their account. On the other hand, some reviewers stated a lack of notification and clarification regarding account closures, including fund freezes. Grasshopper Bank Review: Pros, Cons,
Is It Worth It?
Grasshopper Bank is offering a free digital business checking account. And it’s one of the best options out there right now. Without a monthly fee, small business owners and side hustlers can get excited about a banking experience that won’t be a drain on their finances. Grasshopper Bank Review: Pros, Cons,
With unlimited free transactions and the ability to earn cash back on your spending, that’s a bank account worth considering for any business. Plus, up to 1.35% APY on your checking balance is the icing on the cake.
With just a five-minute application process, you can set up a worthwhile checking account for your business. And then get back to work! Grasshopper Bank Review: Pros, Cons,
If you don’t think that Grasshopper Bank is the right fit, explore our other business checking account favourites.
Common Questions
Is Grasshopper Bank FDIC insured?
Yes, Grasshopper Bank is FDIC insured. You can reference certificate 59113.
Can I deposit cash into Grasshopper Bank?
No, you cannot deposit cash into Grasshopper Bank.
Is Grasshopper a real bank or a FinTech?
Grasshopper is a real chartered bank, not a neobank.
Does Grasshopper Bank integrate with QuickBooks?
Yes, you can directly connect Grasshopper Bank to Quickbooks. Grasshopper Bank Review: Pros, Cons,
