Grasshopper Bank Review

Pros

• No monthly fees
• High APY
• Built-in cashflow & expense tracking features

Cons

• No cash deposits or checks

What Is Grasshopper Bank?

Grasshopper is an online bank with competitive checking rewards and an almost unrivaled number of lending options. Grasshopper Bank finances term loans, lines of credit, commercial real estate loans, SBA loans — and if you don’t believe us yet, Grasshopper even offers yacht loans.

If you want to have your checking account, savings account, and lending accounts with the same banking institution, Grasshopper Bank is worth looking into.

Grasshopper Bank is one of the few banks to offer both APY and cashback on its checking account, earning it a top spot on our list of best business checking bank accounts. Add in no monthly fees, and it’s easy to see why Grasshopper is a solid small-business banking option.

However, Grasshopper doesn’t accept cash deposits, so businesses that need this feature may want to look elsewhere.

Services Offered By Grasshopper Bank

Grasshopper Bank offers a solid rewards checking account and numerous lending services.

Here’s what Grasshopper Bank does offer:

• Checking
• Savings
• Term loans
• Lines of credit
• SBA 7(a) loans
• SBA 504 loans
• Commercial real estate loans
• End-of-life facility loans

Grasshopper Bank Rewards & Perks

Grasshopper is among the few checking accounts with both APY and cash back. Grasshopper offers up to 2.00% APY — which is highly competitive for an online business checking account — and 1% cash back on qualifying purchases.

Here is the potential APY earning breakdown for the Grasshopper Innovator Business Checking Account:

• 1.00% APY on balances under $25,000
• 2.00% APY on balances from $25,000 – $250,000
• 1.00% APY on balances over $250,000

Clients who have an Innovator Business Savings Account are eligible for an Innovator Money Market Savings Account. An Innovator MMA Savings Account can earn you up to 3.30% APY on balances of $25,000+.

Grasshopper Bank Fees

Grasshopper Bank gets high points for having no monthly fees and few additional fees, earning a 4.5/5 star rating for this section. The company is also very forthcoming with its fee schedule and transaction limit information.

You will find a large number of miscellaneous fees. While these miscellaneous fees exceed other online bank options, they are truly miscellaneous (like replacing a debit card, expediting a new debit card, etc.) and you likely won’t see these fees often.

Grasshopper Bank partners with MoneyPass and SUM ATMs. Enjoy fee-free withdrawals at 37,000+ MoneyPass and 8,500+ SUM ATMs nationwide. While Grasshopper doesn’t charge any ATM fees, you may encounter third-party out-of-network ATM fees.

Grasshopper Bank Eligibility Requirements

Grasshopper Bank’s eligibility requirements are relatively easy for businesses to meet, though there is a list of high-risk industries that Grasshopper doesn’t work with. Overall, Grasshopper Bank gets a 3.9/5 star rating in this section.

To open an Innovator Business Checking Account with Grasshopper, you’ll need to meet these requirements:

• 18+ years old
• U.S. citizens or U.S. residents with a U.S. address
• A small business owner in a supported industry

Grasshopper does not support businesses in U.S. territories. These high-risk industries also aren’t eligible for a Grasshopper checking account:

• Adult entertainment
• Gambling
• Illegal substances
• Virtual currency
• Weapons
• Firearms

Eligibility requirements for Grasshopper’s lending solutions vary by loan type.

Grasshopper Bank Features

Grasshopper Bank offers competitive checking account features and several built-in tools like invoicing to make managing your business’s finances easier. There are no cash deposits or expense tracking, earning a 3.7/5 star rating overall.

Here’s a full breakdown of what you can expect from a Grasshopper Bank checking account.

Innovator Business Checking Account

• Virtual & physical VISA debit cards
• Unlimited ACH
• Unlimited wire transfers
• Mobile deposits
• FDIC insurance up to $250k
• Mobile banking
• Invoicing
• Bill pay
• Cash flow management
• API banking

Grasshopper Bank offers APY and cash-back earning potential with the Innovator Business Checking and Innovator Savings accounts.

Transaction Limits

Compared to most online banks, Grasshopper Bank has relatively high transaction limits, which is good for larger businesses. However, there is a limit of up to $3,000 in daily debit spending.

There are also multiple stipulations for mobile check deposits:

• 25 mobile checks or $25,000/day, or
• 50 mobile checks or $100,000/month, and
• No more than $15,000 per check

You can request limit increases from Grasshopper.

Transaction Processing Times

Grasshopper generally processes transactions on the same day if those transactions are submitted within a certain time frame. However, the only guarantee Grasshopper Bank makes is that processing can take up to 3 days.

If you are processing a wire transfer of over $10 million, the transaction will undergo a special process and may take longer.

Grasshopper Bank Application Process

Grasshopper is fairly transparent about its application process and tries to make opening an account easy for business owners. When opening a Grasshopper bank account, you can choose between “Business Banking” or “Startup Banking.” Each type of account gives you access to different features fit for your specific business size.

To open your account, you’ll need a long list of personal and business documentation. These requirements — in addition to some difficulties in finding details about the application process on the Grasshopper website — lowered our score in this category to 4.7/5.

Once you have set up your account, you can use virtual debit cards or expedite your physical debit card since they generally take up to 14 days to arrive.

Grasshopper Bank Sales & Advertising Transparency

Grasshopper is fairly transparent about its fees, application process, and eligibility requirements, but there are several negative customer reviews regarding the company’s sales process. In addition, there’s hardly any information on Grasshopper’s security information, which is a big issue for a bank. This, paired with a weak social media presence, puts Grasshopper Bank at a 3.2/5 star rating for this section.

Grasshopper Bank Customer Service

Grasshopper offers several ways to get in touch, as well as self-service options such as an extensive FAQ section on its website with valuable banking information.

According to customer reviews, the customer service at Grasshopper is a mixed bag. Many customers report great experiences, but there are enough complaints about unanswered support tickets and emails that we had to note this in our review — and as part of our rating of 4.3/5 stars.

Grasshopper Bank Customer Reviews

Grasshopper receives a 3.2/5 third-party review site aggregate score. Grasshopper Bank also gets a B- on BBB and is not BBB accredited. Taking this and user feedback into consideration led to our rating of 3.1/5.

While there are many positive reviews about Grasshopper Bank,  there are a small number of reviews for Grasshopper Bank compared to other online business banks.

Negative Grasshopper Bank Reviews & Complaints

• Report of one account being closed with money left in the account
• Deposits taking 5+ days
• Unanswered support tickets
• A couple of reports about rejected account applications

Positive Grasshopper Bank Reviews

• Cashback & other banking perks
• Easy to apply
• Good mobile app
• Positive customer support experiences

Is Grasshopper Bank Safe?

Grasshopper Bank is the only company I’ve seen in a long time that doesn’t have a designated security section on its website for the curious and concerned. However, Grasshopper Bank is FDIC-insured and offers two-factor authentication, fraud monitoring, and bank-level encryption.

They also offer digital card controls from your phone — so, you can lock a card on the go.

How Does Grasshopper Bank Compare To Other Banking Options?

Grasshopper Bank’s biggest competitor is LendingClub, one of the only other online business checking accounts to offer both APY and cashback with its checking accounts. Both offer multiple loan options, though Grasshopper has more lending types available. LendingClub’s APY is lower than Grasshopper’s, but the company is more established and has stronger security measures (or at least more transparent ones).

The Bottom Line: Is Grasshopper Bank Worth It?

From a rewards-checking perks and features perspective, Grasshopper seems worth it. With APY, cashback, built-in cash flow, invoicing, and no monthly fees, Grasshopper Bank has an enticing package for small business owners. Add potential for lending to the mix, and Grasshopper Bank could be a good choice.

However, despite Grasshopper Bank’s positive customer reviews, there are enough negative ones to give pause.

This doesn’t mean that the pros couldn’t outweigh the cons for your business. The high checking APY is almost unmatched, and the large transaction limits set Grasshopper apart from some of the competition.

If Grasshopper Bank seems like a good fit for your business, carefully read all terms before getting started. You can also check out the top online business bank accounts to find a Grasshopper Bank alternative.

Business Banking Review Methodology

Merchant Maverick has been researching and reviewing business banking services since 2015. Our writers have tested over thirty different banking products, including checking accounts, savings accounts, employee spending cards, and more. In each review, we evaluate rates and fees, services, rewards, features, eligibility requirements, application process, sales and advertising transparency, customer service, and user reviews.

Read more about how we rate business banking products.

When comparing different banks and banking services, we consider many data points, including the ease and transparency of the account application process, account fees, sales ethics, minimum deposit requirements, and revenue, time in business, and credit score requirements. Our lists of the best banking services include only those we’ve deemed worthwhile from multiple vantage points, and often share qualities such as widespread accessibility across fifty states, valuable rewards, numerous transaction options, and competitive APY.

We spend an average of 10-15 hours researching and updating each one of our lists, making sure the banking services included meet our internal standards for quality and reputation.