Business Banking Accounts Could Be Yielding 4%

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For many UK businesses, the era of ultra-low interest rates left a lasting blind spot: the assumption that cash held in business bank accounts simply cannot earn meaningful returns.

Today, that assumption is costing firms real money.

Your business savings could be yielding closer to 4%.

That simple statement surprises most finance directors and business owners we speak to.

Of course, the account you settle on is dependent on your needs, but it does serve to signal that many business owners are unaware of the opportunity cost associated with keeping money in their legacy bank accounts on lower interest yielders.

👉  Book your free SME treasury consultation

The gap between what large banks pay on deposits and what specialist providers can offer has quietly widened into a meaningful source of lost income.

Years of near-zero interest rates conditioned SMEs to ignore the "interest received" line in their accounts.

It hardly seemed worth checking. But the landscape has changed, and a growing number of firms are waking up to the fact that their cash could, and should, be working harder.

In my 15 years across financial services, from SME banking and payments to FX and treasury, I have seen this pattern repeatedly.

Banks move quickly to pass on higher rates to borrowers, but they move slowly when it comes to sharing improved yields with depositors. For SMEs, this means substantial value is often left on the table.

Consider this: in a previous role, we held more than £500m of client funds at any one time.

Banks were initially reluctant to pay anything meaningful on those balances, but by lobbying hard and introducing competitive pressure across multiple banking partners, we were able to turn that dormant cash into a £20m annual profit centre.

SMEs operate on smaller volumes, of course, but the principle is exactly the same. Many businesses still see 1–1.5% as a 'good' return on surplus cash.

In today’s market, that is a signal that your treasury setup may simply be under-optimised.

At Stable, we offer businesses an 'MOT' for your cash balance.

A simple review often uncovers immediate, low-effort steps to materially improve yield, without compromising liquidity or day-to-day operations.

Even with expectations of a downward trajectory in Bank of England rates in 2026, sentiment can shift quickly, and there remain compelling tools to secure or enhance yields moving forward.

Over the coming weeks, we will be sharing a series of articles on best practices for SME treasury management. But the fastest way to understand your potential uplift is a direct review.

We offer a free consultation to help you quantify how much more your cash could be earning and what practical steps can be taken right away.

👉  Book your free SME treasury consultation

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