A lot of people are facing financial challenges at the moment, and you may be finding that you need a little more support than usual.

So if you are needing to borrow, we’re offering practical support in the form of a three-month interest holiday on the first £500 of an arranged overdraft. That means that you won’t be charged any interest when you borrow up to that amount, for that period of time, with your interest payments beginning again the day after the holiday ends.

If you’re still struggling at the end of this three-month period, you can apply to extend your £500 interest holiday on your arranged overdraft for another three months.

It’s just one of the ways we’re helping our customers navigate this tricky time. Just read on to find out how to apply.

When does the arranged overdraft interest holiday start?

Applications for the Starling Coronavirus Support Scheme opened on 1 April 2020 and you can apply until 31 October 2020. If your application is successful, you won’t have to pay any arranged overdraft interest on the first £500 of your overdraft, for 90 days from the day your application is accepted. As you head towards the end of your first 90 day interest-free period, you can apply to extend this for another 90 days. Interest charges will resume the day after the holiday has ended.

Who can apply?

You can apply for an interest holiday if:

  • You’ve suffered a drop in income because of coronavirus. For example, work has dried up or you can’t work due to self-isolation, you have new caring responsibilities
  • Starling is your primary bank account, which you pay your main income (or equivalent) directly into
  • You’re having difficulties meeting payments to keep your account in order or bringing it up to date

Is an interest holiday the right option for me?

The Starling Coronavirus Support Scheme is intended as a temporary support measure for customers who have experienced a drop in income, or expect to soon.

Will this affect my credit score?

No, it won’t. We won’t report your interest holiday to credit reference agencies, and so this won’t have an impact on your credit file.

What happens next?

  1. Get in touch with our customer service team to apply. They’re available 24/7 via phone, email or in-app chat.
  2. If you’re approved, your interest charges will be instantly waived for three months.
  3. We’ll get in touch 30 days before the end of the holiday to remind you when payments will be resuming.

I need some advice - where can I look for support?

We’re always here to support you, but you can also read guidance that’s been published by the Financial Conduct Authority (FCA) or get in touch with the Money Advice Service.

What interest rate will I be charged above the £500 interest free amount?

If you use more than £500 of your arranged overdraft (where your overdraft is larger than £500), you will be charged interest at 15% EAR on any borrowing above £500. After your 90 day £500 interest free period has finished, you will be charged interest at your usual rate.