Karat Financial is launching a creator-focused business banking product. Powered by digital bank Grasshopper, Karat’s banking product is a natural extension of its credit card offering with Visa. To date, Karat has extended $1.5 billion in credit, with the average credit limit per creator at $25,000. But creators needed more financial services beyond the Karat Visa. For business banking, Karat offers two tiers — one is a free, FDIC-insured business checking account with automated tax planning (most creators are independent contractors, so they have to prepare more intentionally for their tax payments than if they had a more traditional full-time job). The premium offering costs $20 per month or requires a $35,000 minimum balance, but provides 2% to 3% APY on checking accounts, free wires, and enhanced customer support, with AI bookkeeping coming soon. “We know creators actually keep a lot of money in their checking account because the industry is so unstable, so we pay meaningful APY on checking, which most banks actually don’t do,” Co-CEO Eric Wei said. In the future, Karat hopes to continue this trajectory of offering more and more business services for creators that traditional institutions are reluctant to provide. A possible avenue could be offering various types of insurance to creators, including healthcare for their companies.