We all need a little extra support from time to time. At Starling, we know that an overdraft can act like a short-term safety net when you’re feeling the burn financially.

But we want to make banking better – which means offering a better kind of overdraft as a part of your current account. One that’s flexible and easy to manage with a clear and reasonable rate. An overdraft that puts you in control.

How our overdraft is different

15% EAR

And that’s the actual rate you’ll pay. Interest is accrued daily and charged on the 15th of the following month – and it’ll always be updated clearly in your app.

No fees

We won't charge you an additional fee on top of the interest you pay.

Complete control

Once your overdraft is approved, you’ll be able to manage the amount you need within that limit in the app. Back in the black? Close your overdraft at any time at no extra cost.

Gone over the limit?

If you go over the overdraft you’ve agreed with us, we’ll only ever apply our standard interest rate and cap your charges at £2 for anything unauthorised.

Helping you stay in control of your spending

  • We’ll send instant notifications when you’re using your overdraft.
  • Spending Insights giving you both a breakdown and overview of your spending habits so you can see where there might be room for improvement.
  • Keep track of your spending with The Pulse and instant notifications.
  • Adjust your overdraft limit with your overdraft slider in app.
  • You’ll also be able to use the app to see how many days you’ve been in your overdraft, and how much interest you’ve accrued.

Apply for a Starling personal account

Download the Starling Bank iOS appDownload the Starling Bank Android app

When you open an account with Starling Bank, you may be offered an overdraft subject to a full check with a Credit Reference Agency – this way we can help ensure that an overdraft is both affordable and manageable for your current situation. Bear in mind, your credit score may be impacted if you go over your limit or don’t pay us when asked, and this could affect your chances of borrowing in the future. We will let know if your overdraft limit is going to be reduced or cancelled (which could happen at any time), or if you need to repay amounts used.

Compare the Starling overdraft to other UK banks

£0£5,000
Borrowing £0 for 30
 days will cost you
CostRate (% APR variable)

It’s worth noting

This is an indicative calculator based upon a sample of free current account products with minimal or no eligibility criteria from a selection of major UK retail banks. All overdrafts in these indicative examples are assumed to be arranged or authorised and therefore, these examples do not take account of any unauthorised overdraft interest or charges.

For all % APR variable values quoted it is assumed that the amount borrowed is repaid after 30 days and a fifteen day grace period is given before interest and other charges are applied, in line with FCA regulations. Therefore the APRs above may differ from quoted EAR figures.

In scenarios that are greater than one calendar month (60 days and 90 days), it is assumed that all interest and other charges are repaid by the borrower in full at the time they are charged. These are not capitalised and therefore, do not increase the interest incurred in a subsequent month.

We recommend that you check the rate on your current account as this may differ.

All information correct as of 22 October 2018.

About interest charges

If you do have an overdraft with us, we charge interest at 15% EAR*. This is the actual rate you’ll pay, although we may update rates from time to time (but we’ll always let you know beforehand, so you can decide whether to keep it or not). Interest is accrued daily, charged on the 15th of the following month and updated clearly in your app.

ear icon

*Not that kind of EAR

An EAR (Equivalent Annual Rate) is a common way of showing interest rates on overdrafts which you can use to compare different banks’ interest rates. This does not include fees that some banks may charge you in addition to interest. Starling does not charge additional fees.
Person holding phone with overdraft slider on screen

Monthly maximum charge

We want our overdraft to feel like a source of reassurance and support in your everyday life, rather than something that further contributes to financial pressures – so we’ve taken steps to make sure that you’ll never spiral out of control.

Payments that would take you over your overdraft limit will, in most cases, be stopped before they can go through. However, in the rare instances where you do go into an unarranged overdraft by accident — and let’s face it, it happens — we’ll only ever charge you the standard rate of interest, with a maximum monthly charge of £2. That’s less than the price of your daily coffee.

Additionally, if your total overdraft interest charges are less than 10p at the end of any given month, it’s on us – we’ll waive your interest charge for that month.

Bank Monthly Maximum Charge (correct as of 19 June 2019)
Starling Bank £2
Nationwide £50
TSB £80
HSBC £80
Halifax £0
Santander £95

Banks may charge different maximum monthly charges for an unarranged overdraft, which may help you to decide which bank is right for you. However, you’ll find that while rates are different, the explanation below is the same across the board:

Your current account will set a monthly maximum charge for:

a) Going overdrawn when you haven’t arranged an overdraft.

b) Going over/past your arranged overdraft limit (if you have one).

This cap covers:

a) Interest and fees for going over or past your arranged overdraft limit.

b) Fees for each payment your bank allows despite lack of funds.

c) Fees for each payment your bank refuses due to a lack of funds.

d) Starling will only charge interest – not fees – meaning our monthly maximum charge is lower.

Struggling to pay off your overdraft?

You’re not on your own. Starling’s budgeting tools are designed to make money management easier, but if you’re still struggling, we’re on hand 24/7. Contact customer support in app via Live Chat, message us on the website chat function or give our friendly team a call. Free debt counselling, debt adjusting and providing of credit information services is also available from the Money Advice Service – find out more by visiting the Money Advice Service website.

Want to know more?

Read about the ins and outs of an overdraft in our blog article.

Find out about our other personal current acccount or read our Ts&Cs.

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