{"id":103874,"date":"2025-02-11T14:00:00","date_gmt":"2025-02-11T14:00:00","guid":{"rendered":"https:\/\/en.econostrum.info\/uk\/?p=103874"},"modified":"2025-02-11T12:27:56","modified_gmt":"2025-02-11T12:27:56","slug":"starling-bank-ends-interest-payments","status":"publish","type":"post","link":"https:\/\/en.econostrum.info\/uk\/starling-bank-ends-interest-payments\/","title":{"rendered":"Starling Bank Ends Interest Payments on Current Accounts"},"content":{"rendered":"\n

Starling Bank has officially ended interest payments on its current accounts<\/strong>, affecting millions of customers. The digital bank previously offered a 3.25% interest rate<\/strong> on balances up to \u00a35,000 but has now withdrawn this feature. In response, the bank has introduced a new 4% easy-access savings account<\/strong>, though customers may find better interest rates elsewhere.<\/p>\n\n\n\n

What Has Changed for Starling Bank Customers?<\/h2>\n\n\n\n

Starting February 10, 2025<\/strong>, Starling Bank no longer provides interest payments on current account balances. The 3.25% rate<\/strong>, which allowed customers to earn up to \u00a3162.50 per year<\/strong> on a \u00a35,000 balance, has been discontinued. The bank had notified customers of the change in November 2024<\/strong>.<\/p>\n\n\n\n

Instead, Starling Bank<\/a> has launched a 4% easy-access savings account<\/strong>. This means a customer with \u00a35,000<\/strong> in the new savings account could earn \u00a3204 per year<\/strong> in interest. However, this rate is variable<\/strong> and subject to change.<\/p>\n\n\n\n

How Does This Compare to Other Savings Options?<\/h2>\n\n\n\n

While Starling Bank\u2019s new savings account offers a competitive rate, some alternatives provide higher returns. Trading 212<\/strong> offers a 5.03% rate<\/strong> on cash ISAs, while Coventry Building Society<\/strong> and Atom Bank<\/strong> both provide 4.85%<\/strong> on regular easy-access accounts. <\/p>\n\n\n\n

For those willing to commit to a fixed-term option, Principality Building Society<\/strong> offers an 8% fixed rate for six months<\/strong>, though it comes with a \u00a3200 monthly deposit limit<\/strong>.<\/p>\n\n\n\n

These figures indicate that Starling Bank customers may benefit from exploring other options<\/strong>, particularly if they seek fixed or long-term savings.<\/p>\n\n\n\n

Why Is Starling Bank Making This Change?<\/h2>\n\n\n\n

Starling Bank stated that it regularly reviews its products<\/strong> and has decided to phase out current account interest payments. The move coincides with the Bank of England\u2019s decision to lower its base rate<\/strong> from 4.75% to 4.5%<\/strong>, which influences savings returns across the financial sector.<\/p>\n\n\n\n

Despite the removal of interest payments, Starling Bank emphasises that customers still benefit from fee-free spending abroad<\/strong> and 24\/7 customer service<\/strong>.<\/p>\n\n\n\n

What Should Customers Do Next?<\/h2>\n\n\n\n

Financial experts suggest that savers should regularly review their accounts<\/strong> to ensure they are getting the best return. Laura Suter<\/a>, personal finance director at AJ Bell<\/strong>, warned that interest rates have declined over the past year<\/strong>, meaning some customers may be earning significantly less<\/strong> on their savings than before.<\/p>\n\n\n\n

Sarah Coles, head of personal finance at Hargreaves Lansdown<\/strong>, also noted that fixed-rate savings accounts may drop further<\/strong> if interest rate cuts continue. She advised savers to take advantage of competitive deals while they last<\/strong>.<\/p>\n\n\n\n

A Shift in the Savings Landscape<\/h2>\n\n\n\n

Starling Bank\u2019s decision reflects broader market trends<\/strong>, with interest rates fluctuating and competition growing among financial institutions. While its new 4% savings account<\/strong> may offer a viable alternative for some, customers looking for higher returns<\/strong> may need to consider other banks or investment options<\/strong>.<\/p>\n\n\n\n

For those affected, reviewing the latest savings rates<\/strong> and considering fixed-rate accounts or ISAs<\/strong> could be a smart move in an unpredictable financial environment, as reported by DevonLive<\/a><\/strong>.
<\/p>\n","protected":false},"excerpt":{"rendered":"

Starling Bank has made a significant change to its account offerings, impacting how customers earn interest on their balances. While the bank has withdrawn a key feature, it has also introduced a new savings option\u2014but is it the best choice?<\/p>\n","protected":false},"author":9,"featured_media":103889,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[44],"tags":[],"class_list":["post-103874","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33","no-featured-image-padding"],"_links":{"self":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts\/103874","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/comments?post=103874"}],"version-history":[{"count":2,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts\/103874\/revisions"}],"predecessor-version":[{"id":103924,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts\/103874\/revisions\/103924"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/media\/103889"}],"wp:attachment":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/media?parent=103874"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/categories?post=103874"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/tags?post=103874"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}