Companies wanting an online business bank account with one of the highest interest yields on the market should consider Grasshopper. A Federal Deposit Insurance Corp. (FDIC)-insured online-only bank, Grasshopper was founded in 2016 and opened in 2019. It supports small businesses, startups, and the investors supporting those businesses. Grasshopper headquarters is located in New York City. It has two primary checking products offering solid interest yields, which puts it on par with competitor Bluevine and ahead of many other fintechs and online banks.
All rates and fees are current as of July 17, 2024, and are subject to change.
Grasshopper
| Checking accounts: | Starting at $0 per month |
| Money Market Savings accounts: | Open with as little as $100 |
Pros
- Solid interest yield on checking accounts
- High-yield savings available for high balances
- As an online bank backed by FDIC, there are no worries about money being sent to backer banks
Cons
- No branch locations
- No cash deposits accepted
- Savings accounts don’t earn interest until balance thresholds are met
Since Grasshopper’s checking accounts offer solid interest yields, the bank could be a good choice for businesses wanting to earn passive income from checking balances. In addition, Grasshopper offers two high-yield savings accounts for companies with higher balances to earn even better returns. The bank does not have physical locations, so it could be ideal for any business not needing in-person banking.Finally, since Grasshopper is an FDIC-insured online bank, you don’t need to worry about any potential issues at a backer bank. In light of the recent data branch at Evolve Bank & Trust, which is used as a backing bank for many fintechs, this is an additional perk of banking with Grasshopper.
Grasshopper is online only, so if you prefer in-person banking for your business, consider a brick-and-mortar bank instead. Also, Grasshopper isn’t ideal for companies that handle cash regularly as it does not accept cash deposits.Finally, you will need at least $25,000 in the Innovator Money Market Savings and $50,000 in the Accelerator Money Market Savings to earn interest. However, it should be noted that since both corresponding checking products earn a solid interest yield, this isn’t as big of a drawback as it would be otherwise.
Grasshopper rates and products
Grasshopper offers two business checking accounts, both of which are free checking accounts. The bank also provides two corresponding business money market savings accounts. It does not offer any business certificates of deposit.
| Grasshopper product | Annual Percentage Yield (APY) |
|---|---|
| Checking accounts | Up to 2.25% APY |
| Money Market Savings accounts | Up to 4.00% APY |
| Checking accounts | |
|---|---|
| Annual Percentage Yield (APY) | Up to 2.25% APY |
| Money Market Savings accounts | |
| Annual Percentage Yield (APY) | Up to 4.00% APY |
Checking accounts
When choosing a free business checking account, you get two options with Grasshopper. The bank’s Innovator and Accelerator Business Checking Accounts have tiered interest earnings. The difference between the two is that Accelerator is only open to venture-backed startups with seed to Series A funding.
Grasshopper provides a free copy of Autobooks for each checking customer. Some software functionality may incur a fee, so check with Grasshopper before signing up for details.
Regarding interest earnings, you will earn 1.51% APY on balances less than $25,000 and greater than $250,000. For balances between $25,000 and $250,000, you will earn 2.25% APY. In addition, the bank’s rewards debit card gives you 1% cash back on qualified purchases. You can also issue virtual debit cards instantly.
Grasshopper Innovator Business Checking Account
Grasshopper’s entry-level account has no monthly fee. It also offers free online and mobile banking, automated clearing house (ACH) service, Bill Pay, and incoming domestic wires. The account requires a $100 minimum opening deposit.
Grasshopper Innovator Business Checking account features
| Account opening bonus | None |
| Minimum opening deposit | $100 |
| Monthly fees | None |
| Top APY | 2.25% (for balances between $25,000–250,000) |
Grasshopper Accelerator Business Checking Account
The only difference between this account and the Innovator account is that you must be a venture-backed startup with seed to Series A funding. Otherwise, all rates and fees are the same.
Grasshopper Accelerator Business Checking account features
| Minimum opening deposit | $100 |
| Monthly fees | None |
| Top APY | 2.25% |
Money Market Savings accounts
For businesses looking for a high-yield savings account, Grasshopper offers two great options. Grasshopper considers both money market accounts (MMAs). Each account requires $100 to open, but both require a minimum balance to earn interest. This isn’t a big deal since Grasshopper’s checking options both have a solid interest yield.
Both of these accounts are free, and the fees charged by Grasshopper are the same as the checking accounts listed above. For more general information about how savings and MMA accounts work, check out our guides to high-yield savings accounts and MMAs.
Grasshopper Innovator Money Market Savings Account
This account earns 3.75% APY but requires a minimum balance of $25,000 to earn interest.
Grasshopper Innovator Money Market savings account features
| Minimum opening deposit | $100 |
| Monthly fees | None |
| Top APY | 3.75% APY on balances of $25,000 or greater |
Grasshopper Accelerator Money Market Savings Account
Grasshopper’s Accelerator MMA Savings earns 4.00% APY, but you must have a balance of $50,000 or greater to earn interest.
Grasshopper Accelerator Money Market savings account features
| Minimum opening deposit | $100 |
| Monthly fees | None |
| Top APY | 4.00% APY on balances of $50,000 or greater |
Grasshopper savings rates compared to current top rates*
While Grasshopper is a great option, some institutions offer higher interest rates. Compare the rates above to this list of competitors:
Other services Grasshopper offers
While not a full-service bank, Grasshopper does offer additional business products and services, including:
- Small Business Administration (SBA) loans: Grasshopper offers SBA 7(a) and 504 loans for business acquisition and expansion, real estate construction, partner buyout, succession planning, and debt refinancing.
- Venture Capital/Private Equity (VPCE): You can access flexible lending solutions, secure operating accounts, a treasury management platform, a dedicated relationship manager, and portfolio support with Grasshopper. This includes the bank’s VCPE forward checking product, which allows you access to enhanced FDIC insurance up to $125 million.
- Sponsor Financing: Access a digital platform and a team of experts specializing in the lower middle market to help your business grow through term loans, lines of credit, delayed draw term loans, fund capital call lines, and more.
- Commercial Real Estate (CRE) loans: Grasshopper provides loans starting at $1 million, including liquidity lines of credit. The bank specializes in multifamily, medical office, warehouse and industrial, commercial flex space, and retail.
- Embedded finance: Use Grasshopper’s platform to help grow your business with banking as a service (BaaS), corporate API banking, and payment facilitation.
Online banking
Grasshopper provides digital banking services to its business customers, including online banking and bill pay. Online and mobile banking service is free with all accounts. As with most online banking platforms, you can check balances and transactions through online banking.
However, Grasshopper exceeds the basic functionality of most online banking. In addition, you can issue virtual debit cards, set up team-based card management and spend controls, access expense management, and collect receipts. You can also send digital invoices, automate bookkeeping, manage cash flow, and establish security measures.
Bill pay can be done via check or ACH from any device. You can also deposit checks through the mobile app. While Zelle is not available, you can use Plaid to set up secure transfers between bank accounts.
The Grasshopper platform and customer support
Grasshopper can be accessed via desktop and online mobile applications. The Grasshopper app is well-rated in the Apple App Store and the Google Play Store. Named the Grasshopper Bank Business App, it has a rating of 4.4 stars out of 5 on the Apple App Store out of 177 ratings and 4.2 stars out of 5 on the Google Play Store out of around 80 reviews.
You can call Grasshopper toll-free Monday through Friday from 9 a.m. to 9 p.m. Eastern time or email Grasshopper at support@grasshopper.bank.
Is Grasshopper secure?
Grasshopper uses various security measures to keep your information safe. These include multifactor authentication (MFA) and mobile biometric authentication, 24/7 fraud and transaction monitoring, and dual controls and permissions. It also uses bank-level security and encryption to keep data safe.
In addition to being FDIC-insured, Grasshopper uses a sweep network to help extend your FDIC insurance by spreading your funds to other FDIC-insured banks.
Grasshopper user reviews
Online reviews of Grasshopper are mixed, although they are very limited. It has a rating of 1 star out of 5 on Deposit Accounts based on around 10 reviews, while on Trustpilot, it has a review of 3.8 stars out of 5 based on about 130 reviews.
Positive reviews raved about the bank’s customer service in terms of the quality and speed of assistance. Most negative reviews were left by businesses that were rejected for accounts or had accounts closed.
Compare Grasshopper alternatives
 Grasshopper |  Nav |  Mercury |
|---|---|---|
| Top savings APY | Top savings APY | Top savings APY |
| 4.00% | N/A | 0.00% |
| Top checking APY | Top checking APY | Top checking APY |
| 2.25% | 0.00% | 0.00% |
| Top CD APY | Top CD APY | Top CD APY |
| N/A | N/A | N/A |
| Other services | Other services | Other services |
| SBA loans Venture Capital/Private Equity Sponsor financing CRE loans Embedded finance | Nav Prime Card Nav Credit Health Loan and credit card marketplace Business service marketplace | Personal banking Credit card Venture debt |
| Learn more | Learn more | Learn more |
| Compare more business checking accounts | Read our review of Nav | Read our review of Mercury |
Is Grasshopper right for you?
Grasshopper is an excellent online bank for businesses looking to earn interest yield on both checking and savings accounts. It might not have all the full-service banking products and services that a traditional brick-and-mortar bank has. Still, in most cases, it offers a much higher interest yield on its deposit accounts than conventional banks. Grasshopper offers outstanding deposit accounts and a wide range of lending products and business services. This is one of the most outstanding business banking providers on the market regarding APYs on its offerings.
Frequently asked questions
Is Grasshopper a real bank?
Grasshopper is a real bank backed by the FDIC. Unlike other online-only banks that use backer banks, Grasshopper is FDIC-insured, making it an excellent option for businesses looking for an online checking account.
Where is Grasshopper Bank headquarters?
Grasshopper Bank is headquartered in New York City. The bank’s address is 261 Fifth Avenue, Suite 610, New York, NY 10016.
Is Grasshopper Bank secure?
Grasshopper Bank is as secure as any traditional bank. It uses many security measures, including multi-factor and mobile biometric authentication, to keep your account safe. It is also FDIC-insured, meaning your accounts are insured to at least $250,000.
