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UK high street bank offers customers leading 4.01% rate for deposits
Lloyds is offering business customers a 4.01% fixed interest rate on surplus cash in a new 13-month deposit, replacing its previous 2.75% rate. The bank says the six-week offer gives businesses a leading return and certainty over what their reserves will earn.
The account is available to new and existing business customers until 17 December 2026, through a relationship manager, the Lloyds app or online banking. Deposits mature on 13 January 2028. The offer follows the Bank of England raising its Bank Rate from 3.75% to 4%; Governor Andrew Bailey said further increases were possible if the Middle East conflict continued to fuel inflation.
In short
- Lloyds offers businesses a fixed 4.01% rate for 13 months.
- Applications are open until 17 December 2026.
- The offer follows a Bank Rate rise to 4%.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
A fixed 4.01% return gives businesses a predictable income on cash they do not need immediately, helping them plan and protect reserves from uncertainty about future rates. The offer may also strengthen competition among banks for business deposits and reward customers who can commit funds for 13 months.
The case against
Locking money away for 13 months can limit a business’s access to cash if its costs or opportunities change, and inflation could erode the real value of the return. The rate is also tied to a short promotional window and a changing interest-rate environment, so businesses may want to compare other accounts and consider whether flexibility is more valuable than certainty.