Lowell’s Washington Savings Bank has introduced a new business rewards checking account that pays an interest rate of 3.01 percent annual percentage yield (APY) on balances up to $10,000 and ATM fee refunds up to $25 per month.

The interest is granted when certain monthly activity qualifications are met, such as ACH activity, e-statements and debit card usage. Even if the activity requirements are not met, the account is still free and earns a small interest rate, according to a statement.

"Before July 2011, banking regulations didn’t allow interest on business checking accounts," said Sean Lydon, vice president of Washington Savings Bank. "Now that it is allowed, we wanted to live up to our slogan, ‘We Give You More.’ To small businesses, every cent counts and this product can deliver significant savings."

In addition to the business rewards checking account, the bank also introduced another interest business checking account that earns money market rates.

"Businesses were stuck for the longest time," said Jim Hogan, CEO of Washington Savings Bank. "To take advantage of higher balances, only confusing cash analysis accounts were available. Now earnings and fees will be more transparent to the customer."