London, 16 December 2019. Starling, the leading digital bank, is revising its overdraft pricing on personal current accounts, replacing its flat rate of 15% with a rate of 15%, 25% or 35% EAR (variable), dependent on customers’ credit scores, commencing 1 April.
In a blog post announcing the change, Anne Boden, the bank’s founder and chief executive, said that Starling’s overdraft rate will remain extremely competitive, in the face of rates approaching 40% being introduced by some high street lenders.
For a customer who receives an EAR of 15% and goes £100 overdrawn for 30 days, the monthly overdraft charges will remain at £1.16. This will increase to £1.86 on an EAR of 25% and to £2.52 on a rate of 35%. That’s still well below the £2.79 they would face with a 39.9% rate.