Chase Vs Starling Bank – Forbes Advisor UK

App-based or ‘digital’ banks offer enhanced technology and features which are easily accessible through any smartphone. And because digital-only banks don’t need to pay for a branch network, they can also offer customers better rates and deals, such as on savings accounts.

But with a growing number of digital providers to choose from, how do you know which one is right for you? To help whittle it down, we’ve compared two leading app-based banks, Chase and Starling.

Chase and Starling Bank: at a glance

Starling Bank is a digital and app-only provider which was set up in 2014. It has since grown rapidly and now has around 3.6 million customers who collectively hold more than four million accounts.

Chase, which is owned by US investment bank JP Morgan, launched in the UK more recently in 2021, with a current account and savings offering. It has around two million customers.

Both providers are authorised and regulated as fully-fledged banks by the Financial Conduct Authority. This means that customers’ money is protected (up to £85,000 per person) under the Financial Services Compensation Scheme.

Both banks offer personal accounts including a current account and savings accounts.

However, Starling Bank has a broader range of products than Chase such as joint accounts, business accounts, multi-currency accounts and accounts suitable for teenagers and younger children. 

How do Chase and Starling’s banking services compare?

Chase: The Chase current account has no monthly fee and pays 1% cashback on debit card spending for the first year (capped at £15 per month). Cash balances in the current account also earn 1% AER interest. There is no overdraft facility available.

Customers can open up to 19 additional accounts through the app which are designed to manage bills and budgeting. Customers can also open a ‘round-up account’ which rounds up the pennies to the nearest pound each time you spend with your Chase debit card, putting ‘spare change’ in a separate account which earns interest of 5% AER. 

Cash machine withdrawals are free up to £500 a day in the UK. Its debit card can be used for spending overseas and cash withdrawals with no charges. Cash machine withdrawals in Chase ATMs in the US are also free. There is a £1,500 monthly limit on overseas cash withdrawals.

However, it’s not possible to pay in cash or cheques or make international transfers from a Chase UK current account.

The Chase app and current account is compatible with digital wallets on a smartphone, including Apple Pay, Samsung Pay and Google Pay.

There is no minimum funding requirement for the Chase current account. A separate easy access savings account is also available (see details below). Chase offers customer service options including in-app chat, email and phone.

Starling Bank: Starling’s current account, which is online or app-based, comes with no monthly fee and currently pays 3.25% interest on credit balances, including cash set aside in its saving ‘spaces’ up to £5,000. Eligible customers can arrange an overdraft of up to £5,000, subject to circumstances and credit score. Day-to-day banking is free-of-charge. 

Customers can withdraw up to £300 a day from cash machines with no charge and cash can be deposited at The Post Office – up to a maximum limit of £1,000 per calendar year. Cheques can be scanned to pay in remotely.

There are no fees to use the Starling debit card overseas and fees to send money from your account to a recipient abroad are low. Starling Bank also offers virtual debit cards, a digital version of your bank card with a unique number that offers an added layer of security when making online payments.

Starling offers budgeting tools, such as virtual jars to segregate money for different types of spending, plus there is a fixed rate savings account available (see below).

The bank also has multi currency accounts and offers competitive rates on overseas money transfers in a broad range of currencies.

The app and account are compatible with smartphone digital wallets.

There is no minimum funding requirement for the current account. Customer service support is offered through Starling Bank’s app. There is live chat available or for less urgent queries, customers can email.

Chase vs Starling Bank savings accounts

• Chase’s easy access savings account is currently paying 4.1% AER on balances up to £500,000. There is no minimum deposit level or monthly or annual deposit requirement. Withdrawals from the account into a linked bank account are capped at £25,000 per day. Customers can hold up to 10 different accounts (for different pots of savings) and all earn the same gross interest

• Starling Bank offers its current account which pays 3.25% AER (variable) on balances up to £5,000. It also has a one-year fixed rate savings account paying 4.48% AER (fixed) on balances from £2,000 (the minimum deposit) up to £1 million. There is no access to money in the fixed rate account during the year of the deal.

Chase vs Starling Bank: current account offerings compared

* All interest rates are quoted as gross

What do the reviews say about Chase and Starling Bank?

Both providers score well on the Trustpilot review website with ratings of 4.3 for Starling Bank and 4.2 for Chase (out of a 5).

With a customer experience rating of 75% on Fairer Finance (February 2024), Starling Bank ranks very well. For context, it’s the same score as online bank First Direct which frequently tops best buy tables and ranking for customer service.

Chase has a solid score of 66% from Fairer Finance which ranks it below banking providers including LLoyds, Halifax, Nationwide building society and Co-operative.

Chase vs Starling Bank: which is best for you?

Whether Starling or Chase is the best for you will depend on your personal requirements from a bank account, such as how you want to use it. 

For Chase, for example, the benefits include the cashback on spending, although this is only available in your first year of holding the account. It is a simple and straightforward account to use, with no fees for overseas spending or cash withdrawals. The cash withdrawal limit is also comparatively generous at £500 per day fee-free.

But Chase doesn’t offer current account customers an overdraft facility, and there is no means of paying in cash or cheques. So this may not suit some bank customers.

As well as scoring particularly highly on customer reviews, Starling pays a high rate of in-credit interest (3.25% AER) although this is capped on balances up to £5,000. Current account customers can apply for an overdraft, and could get a rate of 15% on this borrowing if they have an excellent credit score. There is also the ability to pay cheques and cash into the account (subject to terms and conditions).

Starling offers add-on benefits such as budgeting tools and virtual debit cards for online spending. It offers additional products, such as business accounts, multi-currency accounts and accounts for children and teens.

For customers who want to make international payments and transfers, Starling Bank offers this facility, but it is not possible with Chase.

Switching to Chase or Starling Bank

Both Chase and Starling are signed up to the Current Account Switching Service (CASS). This is a free bank account switching service designed to make switching quick and hassle free. 

Account switches made through CASS are guaranteed to be completed within seven working days. You can even switch your account if you have an overdraft and are overdrawn (provided you haven’t exceeded your overdraft limit and you meet the requirements of the new account provider). Bear in mind Chase does not currently offer an overdraft facility.