Starling Bank to Stop Paying Interest on Personal and Joint Accounts
Starting February 10th, 2023, Starling Bank will no longer offer interest on personal and joint bank accounts. This change affects approximately 3.6 million customers who currently hold £11 billion in deposits.
While Starling has consistently ranked among the top British banks, this decision eliminates the 3.25% AER (variable) interest previously offered on balances up to £5,000. This means customers will no longer earn interest on their everyday banking, potentially impacting their purchasing power due to inflation.
This account offers an interest rate of 4.00% AER on balances up to £1 million, with unlimited access to funds. This allows customers to continue using their Starling account for daily transactions while earning interest on their savings.
Customers can explore alternative options like ISAs, fixed-term accounts, or notice savings accounts. However, finding an easy-access savings account with an inflation-busting interest rate might be the simplest solution.
Ultimately, the decision of where to keep your money rests with you. Weigh your options carefully and choose the solution that best suits your financial needs. Remember, loyalty doesn't always pay, and moving your money can be beneficial.
6 Comments
ZmeeLove
I appreciate that Starling is making bold moves to adjust its account offerings – sometimes change is necessary in a shifting market.
Habibi
Moving money isn’t always a bad thing – with competitive alternatives available, we can optimize our interest earnings.
Mariposa
This change hurts loyal customers who look to their savings for a little extra security. It seems like a cash grab.
Muchacha
Starling used to be a champion for the customer. Now it feels like they're making decisions that benefit themselves, not us.
Africa
I can’t believe Starling Bank is scrapping interest on everyday accounts – another way for banks to squeeze customers in tough times.
Mariposa
Even though it's a change, it pushes us into the market to explore other products that might suit our financial planning better.