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Earn 1.51% APY and 1% cash back with the Grasshopper Business Checking account. Plus, no monthly fee and unlimited transactions.
In 2019, Grasshopper (grasshopper.bank), a fully digital bank backed by the FDIC, opened for business. The bank works with small businesses, new businesses, and firms that invest in venture capital and private equity.
The free business checking account from Grasshopper has no overdraft fees, no limits on transactions, and no minimum balance requirements (beyond the initial deposit). All balances in an account earn 1.51% APY, and there is no minimum balance or maximum balance that qualifies.
Customers of Grasshopper get 1% cash back on purchases made with their debit cards that meet certain criteria. This is a rare feature among business checking accounts.
Autobooks is a free accounting and bookkeeping service that is built into Grasshopper’s online banking platform. All account holders can use this service. Founders of new businesses can also get help raising money and moving through the growth stages.
The experts at Grasshopper will help with applications to accelerators and pitch presentations.
Have questions about your account or app or need help? Monday through Friday, 9 a.m. to 11 p.m. EST, you can contact customer service by phone, live chat, email, or text message.
|Minimum opening deposit||$100.|
Grasshopper Business Checking Pros & Cons
- Unlimited 1% cash back on qualified debit card purchases.
- Earn 1.51% APY.
- No monthly fees or overdraft charges.
- Free, built-in bookkeeping software.
- You can’t deposit cash.
- $100 minimum opening deposit.
What Makes The Grasshopper Business Checking Worth Consideration?
- Cash-back rewards are usually only available on business credit cards, but Grasshopper account holders can earn 1% cash back on qualifying debit card purchases (both online and with a signature), with no limit on how much they can earn.
- Experts at Grasshopper can help fast-growing startups with everything from finding investors to making their pitch decks better or applying to coveted accelerator programs.
- In October 2022, Grasshopper changed its APY so that all balances earned 1.51% APY. This makes it one of the best high-yield business checking accounts on the market.
- One of the best things about online business checking accounts is that they have few fees. Grasshopper is the same way; customers don’t have to pay for ACH transfers, incoming wires, overdrafts, or using ATMs (third-party fees may apply, though). But Grasshopper has extras like cash back and a competitive annual percentage yield (APY), which is rare even among free business checking accounts.
Who Is The Grasshopper Business Checking Best For?
- Startups that want help getting money from investors and meeting with them.
- Businesses that can use built-in tools for bookkeeping and billing.
- Businesses that don’t deal with cash, like e-commerce businesses and other businesses.
- Small businesses that get a lot of wire transfers should have a bank account (these are free with Grasshopper).
Here Are Some Negatives With The Grasshopper Business Checking Account
- Not all businesses deal in cash, but those that do won’t be able to use Grasshopper to meet their needs. The bank that only works online doesn’t accept cash deposits right now.
- Grasshopper does a lot of things right when it comes to customer service. It’s open from 9 a.m. to 11 p.m. EST and gives you four ways to get help (phone, chat, email and text). This service is only available Monday through Friday, which is too bad. Even banks with physical locations offer some kind of help on the weekends.
Here’s How To Open An Account
In just a few minutes, you can open a Grasshopper Business Checking Account online. To fund your new account, you’ll need to link it to a bank account you already have. The first deposit is at least $100. After that, there is no longer a minimum balance.
You’ll need to provide the following to open an account:
- Name, phone number, date of birth, and Social Security number are examples of personal information.
- Information about the business, like its name, type, physical address, phone number, and website.
- When and where your business started, as well as what state it is registered in.
Note: You also need to give personal information for any business owners who own 25% or more of the company.
Read more: Novo Online Business Promotions
Grasshopper Bank’s free business checking account lets you get 1% cash back on all debit card purchases that meet certain criteria. Add to that a high APY and the fact that there are no monthly fees, and what more could you want?
It would be nice to have cash deposits and customer service on the weekends.