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Karat Banking is built for small and growing businesses. With Karat Banking, you receive a U.S. based business checking account, an optional Automated Tax Planning (ATP) account, ACH transfers and wire payments, a Karat Business Banking Visa® Card, and FDIC insurance through our partner banks.

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Checking accounts

Your checking account is your primary operating account. Deposits are received here, payments are sent from here, and Banking Cards spend directly from this balance. You can create up to five checking accounts to organize funds by purpose, such as operations, marketing, or payroll. Each account has its own account and routing numbers, and Banking Cards can be linked to any of them. See Managing multiple checking accounts for details. Your Karat Business Banking Visa® Card can be used anywhere Visa is accepted worldwide.

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Automated Tax Planning (ATP)

You can enable a separate Automated Tax Planning (ATP) account to automatically set aside funds for taxes throughout the year. This helps you separate operating funds from tax savings and manage cash flow more intentionally. You may choose to route up to 50% of eligible income-based deposits, such as client payments or platform payouts, into your ATP account. Funds are allocated from deposits made to your checking accounts. If you have multiple checking accounts, you can choose which ones contribute to ATP. Transfers back to checking can be made at any time. While funds remain in ATP, they earn a higher APY.

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FDIC insurance

Karat Banking accounts are provided by Grasshopper Bank, N.A. or First Internet Bank of Indiana, Members FDIC. Eligible deposits have access to multi-million-dollar insurance coverage through our partner network. Deposit placement through ICS is subject to the terms, conditions, and disclosures in the applicable agreements. Although deposits are placed in increments that do not exceed the FDIC standard maximum deposit insurance amount (“SMDIA”) at any one destination bank, a depositor’s balances at the institution that places deposits may exceed the SMDIA (e.g., before settlement for deposits or after settlement for withdrawals) or be uninsured (if the placing institution is not an insured bank). The depositor must make any necessary arrangements to protect such balances consistent with applicable law and must determine whether placement through ICS satisfies any restrictions on its deposits. A list identifying IntraFi network banks appears at intrafi.com/network-banks. The depositor may exclude banks from eligibility to receive its funds. IntraFi and ICS are registered service marks, and IntraFi Cash Service is a service mark of IntraFi Network LLC. Karat is a fintech company, not an FDIC-insured bank. Banking and Card services provided by Grasshopper Bank, N.A., First Internet Bank of Indiana, and Cross River Bank, Members FDIC.