Founded in 2014 with the mission to transform banking for the digital age, Starling Bank has quickly emerged as a leading neobank in the UK. With a focus on providing a seamless banking experience, Starling leverages technology to empower its customers in managing their finances more effectively.
Starling Bank offers a variety of financial products designed for both personal and business customers. Its core offering includes current accounts that come with no monthly fees, real-time transaction notifications, and advanced budgeting tools. The user-friendly mobile app enhances the banking experience by providing features such as instant card freezing and detailed spending insights, allowing users to take control of their financial well-being.
Moreover, one of the standout features of Starling is its savings options. The bank provides interest-earning savings accounts and goal-based savings pots, helping customers save for specific objectives while earning competitive interest rates. Additionally, Starling’s flexible overdraft and personal loan offerings cater to various financial needs, ensuring that customers have access to credit when necessary.
In this review, we will dive deeper into the key features and benefits of Starling Bank.
Overview
Starling Bank is a UK-based digital bank that has rapidly gained popularity since its founding in 2014 by Anne Boden. The bank aims to revolutionize the banking experience by leveraging technology to create a customer-centric platform that simplifies financial management for its users. With a strong emphasis on innovation, Starling Bank offers a range of services primarily through its user-friendly mobile banking app.
Despite its strengths, Starling Bank is currently available only in the United Kingdom, limiting its accessibility to a global audience. Additionally, while it offers competitive rates and innovative features, traditional banking services like physical branches are not available.
In addition to its core banking services,one of the standout features of Starling Bank is its current accounts, available for both personal and business use. These accounts come with no monthly fees and provide customers with real-time notifications about transactions, spending insights, and the ability to freeze or unfreeze their cards instantly. This level of control enhances user experience and allows customers to manage their finances more effectively.
Moreover, Starling offers flexible overdraft options and personal loans, catering to the varying needs of its customers. The bank also includes features designed to help users save, such as interest-earning savings accounts and goal-based savings pots. These tools encourage better saving habits and provide customers with the means to achieve their financial goals.
Additionally, Starling Bank also distinguishes itself with its Marketplace, which allows users to access a range of third-party financial products and services directly through the app. This feature includes options for insurance, loans, and investment opportunities, making it easier for customers to find solutions that suit their individual needs.
Pros and Cons
Pros
- No monthly fee
- No minimum monthly deposit
- Joint accounts, overdrafts and personal loans available
- 3.25% AER on balances up to £5,000
- Fee free spending abroad
Cons
- No cashback available
- Interest of 15% to 35% EAR (variable) on arranged overdrafts
- Cash deposits can only be made at branches of the Post Office
Account Types
With Starling Bank, you have four options for current accounts:
- Personal account – free of charge
- Joint account – free of charge
- Kids account – free of charge
- Business account – free of charge (2 options available)
Even though its only for UK residents, you can choose your account to be in GBP, EUR or USD (extra cost will apply)!
Personal Accounts
The Personal account plan (free of charge) comes with:
- No monthly fees
- No minimum deposit
- 3.25% AER (3.19% Gross) variable interest on balances up to £5,000
- Deposit cheques availability
- Up to six withdrawals per day (with a daily limit of £300)
- Deposit £1,000 each year for free (with a 0.7% fee thereafter)
- No overseas fees
- Connected cards and additional accounts availability
- 15.00% for arranged Overdraft
- Saving pots, overdraft and personal loans are available
-
Spending Insights and analytics
-
Your money is protected by the FSCS up to £85k
Joint Accounts
It goes without saying that a joint account is for people who know each other pretty well, such as couples. You’ll both have full access to the account and everything that’s in it. And also both will be accountable for any of its debts too, and will share a credit history.
In addition, you can pay your shared bills together, both will get full visibility over any expenses, you can also track your shared spending habits and also send you both instant notifications when you receive money, or either of you spend.
Moreover, to open a joint account, you’ll both need a personal account first!
Kids Accounts (Starling Kite)
The Starling Kite was created to help kids manage their pocket money and turn spending into skills, with a free debit card and app for 6 – 15 year olds
It’s like a child bank account, but built seamlessly into your account for better visibility and control. Once it’s set up, you can transfer money into their Kite Space in seconds and help them learn money skills for life.
Kids get their own version of the app, where they can track their spending, start budgeting, and save for goals. You’ll also be able to keep an eye on things from your own app, and set limits if you want to.
Business Accounts
The Business account plan comes with two different options:
-
Sole trader account – to be eligible for this account, the business owner must be the only owner in respect to the business.
- Business account – to be eligible for this account, your company must be a Limited Companies, Limited Liability Partnerships or a Community Interest Companies (CIC).
In order to open an business account, eligibility will apply! First, you’ll need to check if you’re eligible for our business current account or sole trader account.
The only difference between both plans is the cash amount limits you are able to deposit. While the business current account can cash deposit a limit of £5,000/day and £100,000/calendar year, the sole trader account can only cash deposit a limit of £5,000/day and £20,000/calendar year.
The Business account plans (free of charge) comes with:
- No monthly fees
- No minimum deposit
- Paid features also available in the plan
-
Fee for sending money outside the UK (no fees for receiving)
- Deposit cash at the Post Office for a 0.7% fee (£3 minimum fee), and cheques digitally in-app, for free
- No fee for cash withdrawals inside and outside the UK
- No fee for card payments
- No savings product for business customers
- Integration with accounting tools
In order to get a Euro business account you will have to pay £2/month and for a US dollar business account you will have to pay £5/month.
How to open an account
In order to use Starling, you will need to download the app and credit your account to start using the platform.
Moreover, you will also be asked to provide the following:
- Be over the age of 18 and be a legal resident of United Kingdom
- A valid mobile phone number, email address and personal information (current address, date of birth, full name, and citizenship)
- Document for identity verification
- Selfie for account security
Also, you may be asked a few questions about yourself and the purpose of your account. Keep in mind that eligibility may apply!
The Starling Bank Card
No matter which account you choose, your Starling Bank card will be a debit Mastercard, which you can use to make purchases around the world wherever Mastercard is accepted.
Likewise, you can spend in multiple currencies and get automatic money conversion at near the real exchange rate. Making international purchasing faster and easier.
You can have more than and you can also associate your virtual card with your Apple Pay wallet or Google Pay wallet.
Fees
Starling Bank has become increasingly popular due to doesn’t charge exchange markups. So you get what your money is worth, without conversion fees (using only the real exchange rate, provided by Mastercard).
In addition, the only fees that will apply are for making cash deposits at the Post Office for a 0.7% fee (£3 minimum fee) and if you pretend to get an account in euros or us dollars or get extra paid features.
Safety Measures
Starling is fully authorised and regulated as a bank by the Financial Conduct Authority (FCA).
Customers have full protection for cash held with Starling (for example, in their current account and in savings) up to a total of £85,000 per person under the Financial Service Compensation Scheme (FSCS). This protection is provided in the event Starling Bank goes bust.
In fact, Starling Bank policies are designed to ensure the protection of personal information. In order to ensure your card’s security, Starling offers several protective measures:
- Biometric authentication
- Spending limits to avoid unexpected expenses
- The ability to create a one-time-use online card for safe online shopping
- The option to freeze the card instantly
As a result of the fast evolution of new scams, Starling is continually developing new solutions to combat the latest fraud and scam technologies.
Supported Countries
Starling Bank only serves customers within the United Kingdom, offering its innovative financial products to residents across the country. This localized approach ensures that anyone residing in the UK can easily access Starling’s diverse range of banking solutions designed to align with ethical and sustainable principles.
This availability means that if you reside in United Kingdom, you can easily open an account and access Starling Bank wide array of financial services.
Costumer Service
If you’re an existing customer, the fastest way to contact Starling Bank is via their app. Log into your app, tap the menu icon in the top right corner, tap ‘Help’ and then ‘Talk to Starling’. You’ll then have these options:
- Chat with us – to start a live chat session
- If it’s not urgent, you can send a message – type and send your query and the team will respond as soon as possible
- You can also get in touch with customer service team by calling the phone line available in their website
Bottom line
Starling Bank has established itself as a leading player in the digital banking sector, offering a comprehensive range of services that cater to both personal and business banking needs.
One of the significant advantages of Starling Bank is its fee structure. The bank eliminates many of the common fees associated with traditional banking, such as monthly account maintenance fees and charges for international transactions. This makes it an appealing option for those who travel frequently or need to send money abroad. Additionally, the lack of hidden fees and transparent terms and conditions reflect the bank’s commitment to customer satisfaction.
On the flip side, a notable limitation of Starling Bank is that its services are currently only available to residents of the UK. This geographical restriction means that international users or those planning to move outside the UK will not be able to benefit from its offerings. This could be a considerable drawback for potential customers who are looking for a banking solution that supports their global lifestyle.
In summary, Starling Bank excels in providing a modern, efficient, and cost-effective banking solution. Its focus on innovation, customer service, and transparent operations positions it as a strong alternative to traditional banking. Whether you’re looking to streamline your personal finances or manage your business accounts more effectively, Starling Bank offers a compelling package that is well worth considering for those residing in the UK.
