Why a new generation of banks is rewarding customers for using their accounts (aff)

Most people expect their bank account to quietly sit in the background processing payments, handling direct debits and doing little else. But a growing number of customers are starting to question whether their bank should be doing more.

With interest rates rising and customers keeping larger cash balances than ever, the way an account handles savings, spending rewards and day-to-day support can make a surprising difference to our financial health.

That’s one of the reasons a new generation of banks has been gaining attention in recent years – offering accounts designed not just to store money, but to help customers make more of it.

These challenger banks have been nipping away at the heels of traditional high-street banks, and they're definitely worth paying attention to.

One example is Allica Bank, a relatively new UK bank founded in 2019 that has quickly become one of the fastest-growing financial companies in the country.

It was named the UK’s fastest-growing private company in the Sunday Times 100 in 2024 and has also been recognised as one of the fastest-growing fintech firms in Deloitte’s UK Technology Fast 50.

It bank focuses on established companies and entrepreneurs who often feel underserved by traditional banking services.

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That’s where its current account comes in, it's designed to combine everyday banking with features that actively reward customers for using it.

One of the biggest attractions is its built-in Instant Access Savings Pot, which can pay up to 4.08% AER on funds held alongside the account.

The rate is structured with bonuses for active use – including a 0.5% monthly boost when customers make at least 15 transfers in a month, and an additional temporary boost for businesses that switch accounts using the Current Account Switch Service.

For customers holding significant balances, the difference between low and competitive interest rates can be substantial. For example, £200,000 earning 4.08% would generate £7,660 in interest over a year – a level of return that many traditional accounts simply don’t offer.

The account also rewards spending. Customers can earn up to 1.5% cashback on card spend, which is credited directly each month rather than delivered through points or vouchers.

Beyond the financial perks, the account also aims to address one of the biggest frustrations business owners often report with major banks – lack of personal service.

Each customer receives a dedicated relationship manager, giving them a direct contact who understands their business and can help with banking questions, funding options or financial planning.

At the same time, the account still offers the digital convenience modern businesses expect.

It integrates directly with accounting software such as Xero, Sage and QuickBooks, helping automate tasks like reconciliation and transaction tracking while reducing manual admin.

Businesses can also issue cards to staff with spending limits, separate funds into different accounts for payroll or expenses, and add cards to Apple Pay or Google Pay for easy payments on the go.

Opening an account is designed to be straightforward too, with a digital application process and approvals typically completed within two weeks.

While Allica offers a full range of financial services – including lending, commercial mortgages and asset finance – the Business Rewards Account acts as the foundation, giving companies a central place to manage cash flow, earn interest and handle everyday payments.

To find out more, or to sign up, click here.