Allica Bank pays £100m in interest to business account customers

Allica Bank has paid more than £100 million in savings interest to its business current account customers since launching its Business Rewards Account in 2023, highlighting the potential returns available to SMEs holding surplus cash.

The challenger bank, which focuses on established UK businesses, said more than half of the interest had been paid during 2026 alone, reflecting the continued growth of its business banking proposition.

The milestone comes as new research from Allica reveals a significant gap between the interest rates offered by major high-street banks and alternative business banking providers.

According to Allica’s analysis of six major banking providers, the average instant-access savings rate available on a £75,000 business deposit was just 0.80% AER.

By comparison, Allica’s Business Rewards Account currently offers a standard Savings Pot rate of 2.83% AER, with eligible customers able to access additional interest boosts taking the maximum advertised rate to 4.08% AER, subject to conditions and time limits.

The Savings Pots allow businesses to earn interest on surplus cash while retaining instant access to funds, helping companies manage reserves for tax payments, investment, acquisitions and other operational requirements.

The £100m milestone is in addition to £79.3m in interest paid to established businesses through Allica’s conventional savings accounts.

Allica said the number of businesses using its Business Rewards Account increased by 133% during 2025, reaching more than 14,000 customers just two years after its launch.

The account is designed for established businesses employing between five and 250 people, offering savings interest alongside cashback on card payments, accounting software integrations, expense management tools and relationship management support.

The bank has previously highlighted the wider issue of low returns on business deposits. Research published by Allica in 2024 estimated that UK SMEs were missing out on £9bn annually in potential savings interest, with substantial cash balances held in accounts paying little or no interest.

Richard Davies, CEO of Allica Bank, said: “Established businesses have been getting a poor deal on their cash from the big banks for too long.

“These are businesses working hard to grow, create jobs and support their local economies. They shouldn’t have to settle for their hard-earned money doing so little for them.

“Paying our customers more than £100 million in interest from their Savings Pots shows what’s possible when you build a bank specifically to support established businesses.”

Davies added that the bank’s continued customer growth demonstrated increasing demand for alternatives to traditional business banking arrangements.

“And with more businesses choosing Allica, it’s clear there’s an appetite for a different kind of business banking. We’re showing that businesses don’t have to accept the way things have always been done.”

The figures underline the importance of cash management for SMEs, particularly as businesses seek to maximise returns on working capital and maintain access to funds amid ongoing economic uncertainty.