LiaFi Addresses Gap Between Business Transaction and Savings Accounts

Small businesses have long faced a product gap in business banking: business accounts offer operational flexibility but minimal yields, while savings accounts provide better returns but are not set up for what businesses need for daily operations.

LiaFi now fills that gap.

The Fintech platform delivers interest-earning capabilities typically associated with savings accounts, 2.50% Annual Percentage Yield (APY), without hidden minimums or qualifiers. This is in comparison to the 0.07% APY average for business transaction accounts. This allows businesses to stay with their current business checking account provider and maintains the operational accessibility businesses require for payroll, inventory purchases, and unexpected expenses. Through its partnership with Magnolia Bank, LiaFi serves businesses that need funds available for operations but refuse to sacrifice earnings on idle balances.

The Gap

Traditional business banking products operate at opposite ends of the accessibility spectrum.

Business checking accounts provide immediate access to funds, with unlimited transactions, bill pay integration, and seamless payroll processing. But according to FDIC data from September 2025¹, these accounts earn an average of just 0.07% APY — essentially zero return on operating cash.

Business savings accounts offer better yields; however, they often come with transaction limitations, transfer delays, and operational friction that makes them impractical for businesses managing regular payment cycles.

"There's no middle ground in traditional banking products," says Bruce Hrovat, founder and CEO of LiaFi and a 30-year banking operations veteran. "Businesses either optimize for access or optimize for yield. The current banking environment forces them to choose."

This gap affects businesses across every sector. Many companies need cash available for unexpected equipment repairs. Professional services firms must maintain funds for bi-weekly payroll. Retail businesses require liquidity for inventory replenishment when suppliers offer volume discounts.

Each maintains substantial operating buffers, cash that isn't actively deployed but must remain accessible when operational needs arise. Under traditional banking structures, that buffer cash often sits idle in business checking accounts earning near-zero returns. Idle surplus should be earning value until needed.

Accessibility Meets Yield Optimization

LiaFi's platform bridges the gap by delivering yields on idle cash without sacrificing checking-level accessibility. Businesses continue using their primary accounts for all operational transactions. That operational infrastructure remains completely unchanged.

But the portion of cash representing the business's operational buffer funds held for upcoming payroll cycles, anticipated inventory purchases, or unexpected expenses can be allocated to the LiaFi Business Account, where deposits are FDIC insured through Magnolia Bank, Member FDIC. The platform lets businesses keep cash ready while it works in the background.

"We designed the platform specifically for idle operational cash, not investment capital," Hrovat explains. "These are funds businesses need available, just not necessarily in the next 24 hours."

Filling the Market Gap

When Regulation Q was repealed in 2011, eliminating the prohibition on interest-bearing business deposit accounts, the expectation was that market competition would drive banks to offer business checking solutions bridging the transaction-savings gap.

Fourteen years later, that gap remains. Traditional transaction accounts still average 0.07% APY. Traditional savings accounts offer marginally better yields but retain accessibility restrictions that limit their utility for operational cash management.

By delivering meaningful yields with no minimum balance, no tiered thresholds, and no early withdrawal fees, LiaFi provides the middle-ground product the market has lacked: operational cash can finally earn returns without sacrificing availability for payroll, inventory, and unexpected expenses.

Business owners no longer need to choose between access and earnings. LiaFi has now filled that gap.

*LiaFi is not a bank. Banking services provided by Magnolia Bank, Member FDIC.

**Annual Percentage Yield. Current rate as of today. This is a variable rate account and the rate may change after the account is opened. Rates are subject to change at any time.

¹ National Rates and Rate Caps: https://www.fdic.gov/national-rates-and-rate-caps