Lili Offers 4% APY on Large Business Savings Accounts
Businesses with high cash reserves may now earn higher yields through new tiered savings accounts.
Updated on Oct. 15, 2026 in Saving
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Lili has implemented a tiered interest rate structure for its business savings accounts, providing up to 4.00% APY on certain balances as of January 13, 2026. This platform enables small businesses to earn interest on operating reserves while maintaining FDIC insurance coverage.
Why it matters
Business owners often face low returns on liquid cash, but this tiering allows companies holding substantial reserves for inventory or payroll to capture higher yields. This structure helps offset the historically low interest rates typically offered by traditional banking institutions.
Lili accounts offer 4.00% APY on balances between $500,000 and $1 million, compared to typical traditional bank rates of 0.01% to 0.50%. Balances up to $500,000 earn 2.25% APY, while funds exceeding $1 million earn no interest.
The players
Lili
A financial platform providing banking services and savings tools to over 200,000 US businesses.
The details
Businesses access these yields by creating a sub-account through their primary banking dashboard. To ensure security, deposits are distributed across a network of sweep program banks, extending FDIC insurance coverage up to a limit of $3 million. This model is designed to support companies that maintain high levels of cash on hand for essential capital projects.
Timeline
January 13, 2026: The current interest rate tiers became effective.
October 15, 2026: The details of these interest rates were finalized for publication.
Money Landscape
This development marks a departure from standard single-bank accounts by utilizing a sweep network to maintain FDIC deposit insurance limit protection across multiple partner banks. It contrasts with the historical 0.01% to 0.50% range commonly found in traditional business savings vehicles.
Business owners with large operating reserves should verify their current savings yields against these tiers to determine if a move is warranted. Consult a financial professional to evaluate how moving cash into a sweep program affects your company's liquidity and short-term capital needs.
The takeaway
Maintaining large cash reserves in a low-interest account can result in lost potential growth for your business. Review your business banking statement to confirm your current interest rate and discuss with a financial professional whether your cash reserves are positioned to capture current market yields.
Further reading
For more information on maximizing interest on liquid business cash, visit the Saving section.
Source note: This article includes information reported by The Manila times.
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