Starling Bank business account review

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What is the Starling Business account?

Starling says its aim is to make banking straightforward, simple and quick.

Starling’s business account is no different. Launched in 2018, it takes a matter of minutes to sign up through the app, while its mobile-only approach and easy to use app might make managing your receipts and invoices easier. Starlings business account has been featured as one of our best business bank accounts.

Its business option is available if you’re an individual owner of a limited company, and either the only person with significant control, or if you’re part of a limited company with multiple owners. If you’re a sole trader you must have a personal current account to open a Sole Trader Account.

How does the Starling Business account work?

Like many other challenger banks Starling offers a banking experience that is pretty different to traditional banks. Here we walk you through getting started and what features you would get with a business account:

• Quick application. Download the app on your smartphone. After entering some personal details, you take a photo of an accepted I.D. and film a short video of yourself. With a business account Starling run a few quick credit checks too, but the whole process shouldn’t take more than 10 minutes.
• Your card. You’ll be issued with a contactless Mastercard debit card, which should take between 3-5 days to arrive. However, you can start using Starling straight away through Google or Apply pay.
• No fees. Starling won’t charge fees on electronic payments, domestic transfers, monthly account fees or ATM withdrawals.
• 24/7 support. You can speak with a human adviser (not a robot) at all hours of the day. Contact them through the app, over the phone or by email.
• Real-time info. There’s no waiting around for payments to show up. You even get notifications every time money enters or leaves your account.
• Spending insights. See your spending broken down into categories like utilities, travel or entertainment.
• CSV exports. Share your transactions with your accountant or accounting software like Xero, Quickbooks and FreeAgent.

What other services are available with the Starling Business account?

The Starling business account is free to set up and use, but the challenger bank rolled out two new subscription services in July 2020 that you can add on to the standard account. These come with a monthly fee but you’re under no obligation to sign up.

The two new services are:

• The Business Toolkit – £7 monthly fee. The features of this service include: creating, sending and tracking invoices; automating expenses; recording VAT and connecting to HMRC to submit VAT returns; plus uploading bills and scheduling payments to manage cash flow.
• A US dollar account – £5 monthly fee. Comes with a US account number and sort code equivalent, which means users can send and receive payments in US dollars from their Starling app, as well as spend in either pounds or US dollars using a single debit card.

Is a Starling Business account right for your company?

As briefly mentioned already, you can only apply for a Starling business account if you are an individual owner of a limited company, and the only person with significant control over the business, or if you’re part of a limited company with multiple owners.

Starling is particularly suitable for smaller or medium businesses, as it is free, flexible and quick to set up.

Is Starling Business safe?

As Starling is a licensed bank you are partially covered. In the event of the bank going bust, it is covered by the Financial Services Compensation Scheme (FSCS). So you would be protected for up to £85,000 and they are PRA and FCA regulated.

However, the FSCS doesn’t apply to all business types so you should check with its website whether your company is eligible. It’s worth bearing in mind that the FSCS small business threshold is less than £1 million turnover in a year.

You might also be wondering about how safe the actual app is? Starling have a number of security features to ensure your money is safe from fraudsters:

• Your finances are secured behind a passcode and password and completing your registration requires video and photo-ID.
• If you ever lose your card, you can immediately deactivate it with a push of a button and customer service is there whenever it’s needed.
• A live record of your transactions and home screen notifications means you are alerted to any strange payments immediately.

Starling CEO Anne Boden explains why Starling Bank is different

Pros and cons of Starling Business Current Account

The verdict

If you’ve made it to this point of the review, you might me wondering: a free business account? For real? Yes, it’s 100% true and, if you’re looking for a way to save money, the Starling Bank business account is hard to beat.

So, are there any catches? Not many, to be fair, but keep in mind that this is still a digital-only bank. You won’t be able to pop into a branch and speak to someone in person, which some consumers may prefer when it comes to business banking. Traditional banks are also able to offer a wider range of products (including, for example, business credit cards). But, if these things are not a big deal for you, Starling’s business account is a solid choice.

Compare Starling against its competitors

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Name	Product	Interest	Monthly fee	Overdraft
Tide		0%	No monthly fee	No overdraft available	Get a business account in minutes.	Go to site More Info	Compare	loading Fetching your data...
Amaiz		0%	Free Starter plan, or £9.99 a month for Advanced account	No overdraft available	Go to site More Info	Compare	loading Fetching your data...
CardOneMoney		No interest	No monthly account fee for the first three months*	No overdraft	*£12.50 monthly fee thereafter inclusive of transactional fees	Go to site More Info	Compare	loading Fetching your data...
ANNA		0%	Starts from £0	No overdraft available	Go to site More Info	Compare	loading Fetching your data...
Starling Business Account		0%	No monthly fee	Overdraft available	Go to site More Info	Compare	loading Fetching your data...
TSB business banking		0%	Up to 25 months* free day to day banking	Planned overdraft available subject to acceptance	*25 months free when keeping your account within agreed limits. £5 fee applies after this period, but will be waived if you maintain an average monthly balance of £10,000.	Go to site More Info	Compare	loading Fetching your data...
Cashplus Business		0%	No monthly account management fees, annual account fee is £69	Up to £2,000 of credit, using it costs £1.50 a day	Go to site More Info	Compare	loading Fetching your data...

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Frequently asked questions

• How does Starling make money?

  Starling Bank has four revenue streams that function much like those of a traditional bank:

  • Net interest income: Starling Bank uses customer deposits to lend to other customers as overdrafts and loans.
  • Treasury income: Surplus deposits are held by the Bank of England, Starling gets small returns via interest.
  • Interchange income: The fee that Starling takes from every card transaction made; the interchange fee.
  • Fees and commissions: Traditional banks upsell and advertise additional services that they can provide, generating more income. As Starling Bank only offers their current account, they make money through partnerships with other fintechs, getting a commission on every referral.

• How do I put money into my account if there aren't any physical bank branches?

  Starling bank account is a fully functioning current account which comes with a Mastercard debit card so linking a main account won’t be necessary.

  You can add money to your Starling personal account by doing any of the following:

  • Bank transfer directly from another bank account to your Starling personal account.
  • Cash deposit through any Natwest branch.
  • Choose to transfer your salary, set up direct debits and any other regular payments by making Starling your main bank account.

• How easy is it to top up?

  Simple. Pay in cash manually or transfer funds from another account. Alternatively, you can use the “Switch” option to make your Starling account your main account.

• How much will it cost me to withdraw from an ATM in another country?

  While Starling do not impose any withdrawal charges on customers, ATM providers in your country of destination may charge their own fee. The cost of withdrawing from ATMs differs in different countries and locations.

• Can I open a Starling bank account if I live outside the UK?

  Starling bank accounts are only available to those whose current address is in the UK. You can be from any nationality as long as you live in the UK.

• Do I need the Starling app to access my account?

  Yes, you need to download the app on either an Android or iOS device.

• Do I need a main account to link my Starling account to, or can I use Starling as my main bank?

  Starling bank account is a fully functioning current account which comes with a Mastercard debit card so linking a main account won’t be necessary.

• How do I put money into my account?

  You can add money to your Starling personal account by doing any of the following:

  – Bank transfer directly from another bank account to your Starling personal account.
  – Cash deposit through any Natwest branch.
  – Choose to transfer your salary, set up direct debits and any other regular payments by making Starling your main bank account.

  You can also visit Starling Bank’s website for more information about its different bank accounts’ features and services.

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