> [llms.txt](https://getlemma.com/llms.txt)

# What APY should your practice expect in 2026?

The Federal Reserve implemented two rate cuts in late 2025, positioning the Fed Funds rate near 3.75% as of early 2026, with Treasury yields hovering around 4%. Most medical practices should expect their banks to reflect these rates — but many don't.

## The 2026 baseline

Expected APY ranges by account type:

| Account Type                                 | Expected APY |
| -------------------------------------------- | ------------ |
| Checking at generalist big bank              | 0.01–0.05%   |
| Healthcare-native business operating account | 1.5–2%       |
| High-yield business savings                  | 3–4%         |
| T-bills (4-week)                             | 4.0–4.4%     |
| Brokered CDs (3–12 month)                    | 4.2–4.8%     |
| IntraFi Cash Service (sweep with yield)      | 1.75–3.5%    |

These ranges shift with Fed decisions, though relative gaps between account types remain consistent. A few fintech banks advertise a single flat rate well above this table, the kind of pitch weighed directly in [our comparison of Bluevine's yield-first pitch against Lemma](/provider-guides/bluevine-vs-lemma-medical-practices).

## What you should be earning

A typical five-location practice holding $2M in pooled cash should anticipate $70K–$90K in annual yield — representing a 3.5–4.5% blended return. Practices earning under $20K on the same balance likely bank with a generalist institution, representing substantial lost opportunity.

## Why the gap is widening

Generalist banks raise deposit rates slowly. They benefit when the Fed raises rates while continuing to pay you the same 0.05%. They cut rates fast when the Fed cuts.

Healthcare-native and challenger banks distribute more rate benefits to customers. Without the expense burden of branch networks and ATM infrastructure, they operate differently. The spread between optimal and average yields widened during 2024–2025, with differences of 200–400 basis points now typical.

## How to benchmark your bank

Follow this evaluation process:

1. Extract 12 months of interest income from bank statements
2. Divide by your average daily balance
3. Compare against the Fed Funds Effective Rate for that period

If your effective yield trails the Fed Funds rate by over 200 basis points, reconsider your banking relationship. A gap exceeding 300 basis points suggests switching makes financial sense.

## What to do about it

Recommended steps in sequence:

1. Request your current bank's 2026 operating account APY in writing
2. Obtain quotes from [healthcare-focused banks offering multi-entity support](/mso-banking)
3. Implement [a bucketed cash strategy](/provider-guides/optimize-yield-1m-practice-operating-cash) dividing funds between operating, reserve, and strategic purposes

Lemma's operating account delivers up to 1.75% APY without minimum balances, plus [FDIC coverage via an IntraFi sweep](/provider-guides/what-is-sweep-network-banking-deposits).

## What drives bank pricing in 2026

Three factors influence APY this year:

- **Fed trajectory:** Rate reductions compress yields broadly; rate stability preserves them
- **Deposit competition:** Challenger banks aggressively compete on pricing; traditional banks remain passive
- **Loan demand:** Banks offer higher deposit rates when loan demand is strong; current demand remains moderate

If the Fed cuts an additional 50 basis points, expect operating account yields to approach 1.25–1.5%, with Treasury instruments following suit.

## A note on promotional rates

Banks advertise 5–6% APY rates with conditions worth examining:

- Most cap deposits at $25K or $250K
- Several require 90-day intro periods
- Rates typically reset to 0.5% afterward
- Few scale appropriately for multi-entity practice balances exceeding $1M

For larger practices, these promotions function primarily as marketing, not viable strategy.

The 2026 banking landscape presents unusual opportunities, with substantial gaps between what banks should pay and what they do pay. Medical practices should calculate their current yield, obtain competitive quotes, and reassess their banking arrangements accordingly.

## Your bank doesn't know healthcare. Lemma does.

Lemma is business banking for healthcare practices, MSOs, DSOs, and multi-entity groups: free ACH, up to 1.75% APY, $10M FDIC protection, entity management, cash sweeps, and an AI-powered lockbox that digitizes checks and EOBs on arrival.

Free for a single entity, $50/month per entity for groups. Open in 5 minutes. It's the last bank switch you'll make.

[Sign up](https://app.getlemma.com/sign-up)
[Book a demo](https://calendly.com/d/ct72-djp-r7w)
[Pricing](https://getlemma.com/pricing)