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 our overdraft is different

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 currently apply a rate of 15% EAR (variable). From 1 April 2020, we will be applying rates of 15%, 25% and 35% EAR (variable) for arranged overdrafts based on your credit score. We explain why in this blog post or use the calculator to check the new rates.

Complete control

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. Back in the black? Close your overdraft at any time at no extra cost.

No fees

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, we’ll only ever apply our standard interest rate and cap your charges at £2 for anything unauthorised. 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 if your balance is lower than your limit.

We’ve built these tools so that you check your overdraft eligibility and what an overdraft could cost you. Effective 1 April 2020 we’re making some changes to our overdraft pricing. We explain why in this blog post or use the calculator to check the new rates.

Overdraft cost calculatorOverdraft eligibility tool

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

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.

Collection of phones showing the app

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.

*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.

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 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 — 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 13th December 2019)
Starling Bank £2
Nationwide £0
TSB £80
HSBC £80
Barclays £32
Santander £50

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 often 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.

Phone with app

Want to know more?

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

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

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