Grasshopper Bank vs. Novo: Business Checking Compared

SwitchWize may be compensated if you open an account through links on this page. That does not change how we research or write. The Novo comparison here is based on Novo's published pages, and Grasshopper figures come from Grasshopper's own live pages as checked on October 8, 2026. Neither company reviewed this article.

Quick answer

If you hold a larger operating balance and want checking interest and a debit card that can pay cash back, Grasshopper's published terms are built for that, though the cash back needs a $10,000 average monthly balance. If you want a simple account with no minimums, no monthly fees, and no transaction limits listed, Novo's published page describes exactly that, though it does not list a checking interest rate. For the Grasshopper bank vs Novo decision, the question is mostly whether interest on idle cash matters to your business.

Side-by-side facts

Source note: Grasshopper figures are per Grasshopper's own live pages, checked October 8, 2026, with the dates Grasshopper itself puts on its rates. Novo figures are per Novo's published business checking page as checked in September 2026. Terms change, so confirm everything on each company's site before applying.

How Grasshopper's interest actually works

Grasshopper's headline "up to 1.35% APY" is a tiered figure. Per its startup banking page, accurate as of 11/03/2025, checking pays 1.00% APY on balances from $0.01 to $24,999.99, 1.35% from $25,000 to $250,000, and 1.00% above that. Grasshopper notes that rates may change after the account is opened and fees may reduce earnings, so these figures may have changed. The 1.35% applies only to the middle band.

Novo's page, by contrast, makes no checking interest claim. We are not filling that gap with a yield from another product, because none is disclosed for the checking account.

Cash back has conditions

Grasshopper's startup banking page lists 1.00% cash back on qualified purchases (signature-based debit card purchases). It applies only if you maintain an average balance of $10,000 or more within the calendar month, the account is open, active and in good standing, and there were no NSF items in the preceding twelve months. Cash equivalents and returned purchases are excluded. If your balance sits below $10,000, plan on no cash back.

Everyday banking features

Grasshopper's partner materials describe a fuller feature list, including ACH and wire handling, ATM network access, remote check deposit, bill pay, a QuickBooks integration, and user permissions. Those details are not on the public startup banking page we checked on October 8, 2026, so treat them as partner-material claims and confirm with the bank before relying on any of them.

For Novo, our verified sources cover the fee and minimum terms and the partner bank, not the full feature set. If you depend on a specific integration, card, or invoicing tool, check Novo's current page rather than relying on a summary here.

Who should pick Novo instead

• You want a plain account with no minimum listed and no interest to track. Novo's published page lists no monthly fees, minimums, or transaction limits, and a $100 opening deposit is one less thing to think about.
• You are not likely to hold enough cash for interest or cash back to matter. On a few thousand dollars, the interest difference is small either way, and Grasshopper's cash back needs a $10,000 average balance.
• You do not need a term loan or SBA lending from the same bank. Grasshopper's lending tie-in is a real feature, but only if you would use it.
• You are not a US-based business with US owners or ITIN holders. Grasshopper's partner materials limit eligibility to those, so check each company's own rules if that excludes you.

Who fits Grasshopper

• You hold a meaningful operating balance and want checking interest, especially in the $25,000 to $250,000 band, at whatever rate Grasshopper currently pays.
• You regularly keep $10,000 or more on average and spend on a debit card, which is when the 1.00% cash back condition is met.
• You may want a term loan or an SBA 7(a) loan later and prefer one relationship. Grasshopper's SBA page lists preapprovals starting at $150,000. See our Grasshopper SBA loans review.
• You want to bank directly with a bank rather than through a partner-bank arrangement.

For other head-to-head views, see our Grasshopper vs. Found and Grasshopper vs. Relay comparisons, or the wider small business banking guide.

This is educational information, not personalized financial advice. Rates, fees, and eligibility change without notice. Confirm current terms directly with Grasshopper and Novo before opening an account.