Small business owners across the United Kingdom might be missing out on significant financial gains by leaving surplus cash dormant in their bank accounts. A new business current account, offering up to 4.08% AER interest and up to 1.5% cashback on eligible transactions, could potentially generate thousands of pounds in additional income for enterprises in 2026.
Maximising Business Cash with Competitive Returns
For many sole traders and small to medium-sized enterprises (SMEs), managing cash flow involves rigorous efforts in chasing payments, handling suppliers, and meeting tax obligations. However, a critical aspect often overlooked is the performance of the business bank account itself. Frequently, balances remain static, earning minimal returns, which in today's economic environment can result in substantial lost opportunities over time.
The Allica Bank Business Rewards Account is designed specifically for established UK businesses, aiming to address this issue by combining competitive interest rates on spare funds with cashback rewards on everyday expenditures. This approach allows working capital to become more productive without requiring funds to be locked away or exposing businesses to investment risks.
Significant Earnings from Larger Balances
Businesses maintaining substantial balances could see remarkable benefits. For instance, a company holding approximately £250,000 in its account might earn close to £10,000 over twelve months through a combination of interest and cashback. This potential income is achieved while retaining instant access to funds, ensuring liquidity for operational needs such as VAT payments, payroll, or supplier costs.
The core feature of the account is an instant access Savings Pot, which pays up to 4.08% AER. Importantly, this offers no fixed terms or notice periods, allowing money to remain readily available while accruing interest. Practical examples illustrate the impact: £200,000 at 4.08% AER could yield around £7,660 in interest annually, with higher balances approaching the £10,000 mark. Even smaller balances can experience a meaningful improvement compared to many traditional business current accounts.
Cashback on Routine Business Expenses
In addition to interest earnings, the account provides up to 1.5% cashback on card spend, credited monthly for eligible transactions. This benefit applies to common business expenditures such as materials, fuel, stock, travel, and subscriptions. Unlike many business debit cards that offer little or no cashback, this feature ensures that routine payments can contribute to a return, further enhancing the account's value.
Digital Convenience and Personalised Support
Beyond financial rewards, the Business Rewards Account integrates digital tools with human assistance to streamline banking operations. Customers receive a dedicated relationship manager alongside app-based banking and a clear online dashboard. The account seamlessly connects with popular accounting software like Xero, Sage, and QuickBooks, reducing manual administrative tasks and improving real-time cash flow visibility.
Additional functionalities include the ability to issue employee cards with customised spending limits, segregate funds into different pots for specific purposes such as payroll or expenses, and manage permissions securely. Account opening typically completes within two weeks, and switching via the Current Account Switch Service is designed to be straightforward, offering a practical solution for business owners prioritising efficiency.
For sole traders and small business owners who view themselves as individuals first and enterprises second, this account presents a refreshingly user-friendly approach. If current business cash is underperforming, it may be worthwhile to evaluate whether it could be optimised for better returns in 2026.
Note: Interest rates are variable and accurate as of 24 February 2026. Cashback is variable and based on card spend, with exclusions applicable. Eligibility criteria and terms and conditions apply for the Business Rewards Account.
