A fairer overdraft
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. One that’s easy to manage and fair on fees. Manage your money and keep tabs on your overdraft, all from our award-winning app.
How a Starling overdraft can help you
Your interest rate
Interest is accrued daily and charged on the 15th of the following month – and it’ll always be updated clearly in your app.
We offer interest rates of 15%, 25% and 35% EAR (variable) for arranged overdrafts based on a range of different factors, including information from multiple credit reference agencies - and a representative rate of 15% APR* (variable), assumed credit limit £1,200. You can use our overdraft calculator to see how much an overdraft will cost you.
Once your overdraft is approved, you’ll be able to manage the amount you need within that limit in the app. Something to note: you can’t reduce your overdraft limit to an amount that’s less than your current balance.
We won't charge you an additional fee on top of the interest you pay.
A bit of housekeeping
They’re easy to set up and just as easy to manage – but don’t forget, a Starling overdraft is a credit facility. So, it could affect your credit score.
Gone over the limit?
If you go over the overdraft you’ve agreed with us, you will incur no charges or interest on your overdrawn amount . Be aware though your transactions may be cancelled due to not having funds. Just something to be mindful of. Also on a related note: if you want to reduce your limit you will only be able to do this in your app if your balance is lower than your limit.
We’re introducing the Starling Coronavirus Support Scheme to support personal account customers with arranged overdrafts who are struggling financially as a direct result of the current emergency.
Overdraft cost calculatorOverdraft eligibility tool
We’ve built these tools so that you check your overdraft eligibility and what an overdraft could cost you.
Our representative APR is the advertised rate (or a lower rate) that we reasonably expect at least 51% of customers who are accepted for and enter into an overdraft agreement will get with us. 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. An APR (Annual Percentage Rate) is a common way of showing interest rates on overdrafts which includes fees that banks may charge. Starling does not charge additional fees.
Helping you stay in control of your spending
There are times when you may need an overdraft, like if you have a scheduled payment and not quite enough money. That’s why we’ve designed an overdraft that’s flexible and easy to manage. An overdraft that puts you in control.
- Need an overdraft, apply in seconds in the app.
- Adjust your overdraft limit with your overdraft slider in app.
- See how much it will cost you before you apply.
- 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.
- See your real-time balance in the Pulse. Whenever money leaves your account, you’ll know about it.
- Get instant notifications whenever you spend so you can keep on top of your finances.
- Never miss a scheduled payment again – we’ll remind you when they’re due and let you know if you have insufficient funds. We’ll send you an alert when you’re using an overdraft, too.
- With Spending Insights, you’ll be able to see an overview of your spending habits, so you can see where there might be room for improvement.
Apply for a Starling personal account
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.
About interest charges
If you do have an overdraft with us, we charge interest at 15%, 25%, or 35% EAR* (variable) based on a range of factors including information from multiple credit reference agencies. 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.
*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.
Unarranged overdraft charges
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 may 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 — you won't incur any charges or interest on the overdrawn amount.
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.
Starling Coronavirus Support Scheme
We know this is a difficult time, and coronavirus may be affecting your finances. That’s why we’re introducing the Starling Coronavirus Support Scheme to help customers with arranged overdrafts who are struggling financially as a direct result of the current emergency. Find out more information about the scheme.