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Starling Bank sets the standard: Boosts interest rate to 3.25% AER for Personal and Joint current account balances

28th September 2023

Digital bank urges high-street lenders to follow suit

  • Earn interest on Starling’s free account with no need to move money around

  • Customers to earn 3.25% AER / 3.19% Gross interest (variable)* on balances of up to £5,000

  • Rate automatically applies from 1st October and is paid monthly

London, 28 September 2023: Starling Bank will pay 3.25% AER / 3.19% Gross interest (variable)* on current account balances of up to £5,000 from 1st October 2023.

The move will mean that all personal and joint account customers earn interest on their balance without having to move their money into a separate account or dedicated pot.

John Mountain, interim CEO of Starling Bank said: "Most banks with competitive interest rates require customers to move money into a separate account or pay a subscription fee. This friction means that many people won’t get around to taking action and so miss out on the interest on their main balance. We wanted to change this and ensure that everybody benefits by paying interest on the first £5,000 in their current account. This is something that all big banks should consider doing."

Starling will pay interest on positive balances, so customers’ money has earning potential whether they're holding money for day-to-day transactions or saving for holidays or heating bills. Interest rates apply to the first £5,000 in a customer’s account, inclusive of money held in Spaces and children's Kite cards connected to an adult account.

Customers with joint accounts will earn interest on joint balances of up to £5,000, as well as on balances of up to £5,000 in their personal current account. Most of Starling’s retail customers will benefit from the interest on the entirety of their current account balance, with 94% holding £5,000 or less.

Interest is calculated daily and paid monthly on the first day of the following month. The 3.25% interest rate is available to new and existing customers.

Notes to editors

*AER stands for Annual Equivalent Rate and represents what the interest rate would be if it was compounded and paid once a year.

Starling will pay gross interest, which means it doesn't take off any tax the customer might owe on the interest received. Tax owed will depend on each customer's individual circumstances and might change in the future.

Customers who do not want to earn interest on their account can opt out of interest payments by contacting Starling’s Customer Service team in the app.

Starling’s free current account has paid interest on balances since the Starling app was launched in 2017. The previous rate was 0.05% AER interest (variable).

Starling customers are able to open one additional GBP retail account. No interest is currently paid on this account and this will not change.

Balances up to £85,000 are protected by the Financial Services Compensation Scheme (FSCS).

For savers, Starling also offers a One Year Fixed Saver paying 5.53% AER interest (fixed) on deposits between £2,000 to £1,000,000 that are held for a year.

About Starling Bank

Starling Bank is an award-winning, fully-licensed and regulated bank built to give people a fairer, smarter and more human alternative to the banks of the past. It offers personal, business, joint, euro and dollar current accounts alongside a children’s card. Starling also provides a Software-as-a-Service (SaaS) proposition through its subsidiary Engine, using the proprietary technology platform that it uses to power its own bank. Headquartered in London, the bank has offices in Cardiff, Dublin, Manchester and Southampton.


Grace Wilson, Senior PR Manager
+44 7506 402635

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