London, 14 March 2020: Starling, the leading digital bank, is revising the interest rate it pays on credit balances on its free current accounts, following the Bank of England’s ("BoE") decision to cut interest rates to shore up the economy amid the coronavirus outbreak.
The BoE reduced its Base Rate from 0.75% to 0.25% on 11 March 2020.
To reflect this, Starling will be making a change to the interest rate offered to customers holding credit balances on their personal current accounts. From 18 May 2020 the interest rate on all personal current accounts will be 0.05% AER on credit balances up to £85,000.
At present Starling pays 0.5% AER on balances of up to £2,000 and 0.25% AER on balances up to £85,000 on personal current accounts. It pays no interest on business and sole trader current accounts.