UK-based Starling Bank is one of a growing group of “challenger banks” looking to simplify how people manage their finances. Starling is a digital-only bank that offers a personal account (similar to a chequing account), joint account, business account and a prepaid card for kids.
In our Starling Bank review, we focus on the personal account. Customers who sign up for this account get a debit card and access to the Starling app, which helps users budget, save and understand where their money goes.
The Starling app focuses on the necessities, with a minimalist design that covers key information. Access different features by switching between tabs. These features include:
Other key features include:
In addition to the Starling mobile app, personal account customers can manage their accounts through online banking.
Starling is definitely one of the best UK challenger banks out there. The app is quite elegant and streamlined, and the lack of fees is great for travellers. Starling is a fully licensed bank in the UK, so customers’ money is as safe as it would be with a traditional bank.
That being said, Starling’s features are comparable to other digital spending apps like Revolut and Neo Financial. Revolut also isn’t available in Canada, but we’ve rounded up a list of alternative apps you should check out.
In an effort to become more sustainable, Starling announced in October 2020 that it would be planting a tree for every successful new personal or business customer referral.
This was followed by the introduction of the UK’s first recycled Mastercard debit card in March 2021. Made from 75% recycled plastic (rPVC), the material is sourced from EU industrial waste from the printing and packaging industries. Only 25% of the card, including its chip and magstripe, is made up of non-recycled elements.
Starling is a founding member of TechZero, a group of UK tech companies focused on climate action. It plans to become a net zero company, aiming to reduce carbon emissions from its operations and supply chain by one third by 2030. The bank has been commended for having exceptionally low operational emissions and a clear policy of not investing in the fossil fuel sector.
Yes, the Starling debit card can be used while travelling outside the UK. Starling’s mobile focus makes it a great app for budget tracking while on the road. Plus, Starling Bank cardholders won’t pay fees for international spending or ATM withdrawals. Foreign currency payments are converted at the Mastercard exchange rate.
Starling doesn’t offer cashback as standard. Instead, it’s partned with the cashback app Tail. Part of its Starling Marketplace, Tail gives customers access to cashback offers at retailers like FatFace, Ocado and Homebase.
Tail can be activated within the Starling app, which links both accounts. When Starling customers pay with their cards, cashback is paid directly into their bank accounts.
Starling offers optional arranged overdraft protection. Interest is calculated daily and charged at 15%, 25% or 35% EAR (variable) based on the customer’s credit score. There are no additional charges for unarranged overdrafts.
Starling’s fees are competitive:
As of the time of writing, Starling Bank pays 3.25% AER interest on balances of up to £5,000. This is relatively uncommon among banking challengers. Revolut, for example, does not pay any interest. However, if earning considerable interest on your balance is what you’re looking for, you may be better off with a traditional bank.
Related: Compare savings accounts in Canada
Starling Kite is a kids’ debit card and account. It has no monthly fee and is linked to the parent’s personal (or joint) Starling account. As with the personal account, the Starling kids card is not available in Canada.
The card has the child’s name printed on it, and they can use it to spend online, in-store and to withdraw cash from ATMs (up to a maximum of £100). If the Kite debit card is lost or stolen, it can be locked through the adult’s Starling account.
Parents can also use their Starling banking app to allocate funds (such as pocket money) to their kid’s accounts and monitor their spending. Parents receive notifications when child spends money, and there are parental app controls for limiting specific functions, like online payments and ATM withdrawals, and setting daily transaction limits.
There are no fees for using the card abroad. Plus, there’s a dedicated app for children to use.
Related: Canadian bank accounts for kids
With a new bank like Starling, it’s natural to worry if funds will be safe. Starling deposits are covered in the UK up to £85,000 by the Financial Services Compensation Scheme (FSCS).
Starling is regulated by the UK Financial Conduct Authority and voluntarily adheres to the Contingent Reimbursement Model (CRM) code. This means that, in most cases, it has to refund any unauthorized payments made from your account. Additionally, Starling will also refund customers if they’re tricked into voluntarily sending money to a scammer. Refunds aren’t issued for negligence.
Starling’s app and card have several security features to protect your account:
Since Starling is only available to residents of the UK, check out these alternative digital financial accounts that are available in Canada.
Here’s a snapshot of the benefits and drawbacks of using Starling Bank.
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