Starling Bank’s business account comes with no monthly or foreign exchange fees – ideal for small businesses with travel on their agenda. It’s a digital-centered account however, that’s not geared up to payment by cash deposits or cheque.
Pros
- No monthly fee
- Arranged overdrafts available
- No fees for ATM use in the UK and overseas
Cons
- 1.75% annual fee on overdrafts (on top of 15% AER)
- Charges apply to deposit cash in post offices
- Large value cheques have to be posted
Customer service
24/7 support via app, phone and email
Starling Bank business account at a glance
Challenger bank, Starling received its banking licence in the UK in 2016 and launched its first business accounts in 2018 – shortly after its personal current accounts. It now has more than three million active accounts.
Starling is an app-based bank with no branches that prides itself on its fast and responsive 24/7 customer service via app, phone and email.
Founded by banker Anne Boden, Starling describes itself as a sustainable bank and it is a founding member of the Tech Zero movement, with no investments made in harmful industries that fuel climate change.
What businesses are eligible?
Starling’s business account is available to limited liability partnerships (LLP) and limited companies.
There is no monthly fee, although some fees apply for certain types of transactions – see pricing below). There are other account options, including a free sole trader account and Euro (£2 per month) and US Dollar (£5 per month) business accounts.
Overdrafts are available for business customers and, if accepted, the interest rate is a competitive 15% AER. However, this can vary subject to the individual business’ circumstances. The business will need to have been trading for at least 24 months before it can apply for an overdraft.
How the pricing stacks up
There is no monthly or annual fee for the UK-based Starling business account. However, Starling also offers a Euro business and a US Dollar business account, both charge a monthly fee.
Some charges apply on the business and sole trader account for some banking transactions. For example, paying cash into an account in post office branches will cost 0.7% (minimum £3 charge) of the sum deposited.
Cash withdrawals from ATMs are free both in the UK and abroad. However, cash withdrawals in post office branches carry a 50p fee.
For cheques worth up to £1,000 customers can scan to deposit the money into their business account, sending it via the app. But cheques of more than £1,000 have to be sent by Royal Mail’s Freepost only. The maximum daily cheque deposits allowed is £5,000.
Business account holders can add Starling’s bookkeeping toolkit, which includes software to help manage invoices, VAT, tax and bills for £7 per month (the first month is included for free).
Benefits of a Starling Bank business account
Among the main benefits of Starling’s business account is that it has no monthly or annual fees while withdrawals from ATMs are always free – at home and overseas.
Day to day transactions, such as bank transfers, are free, but as mentioned above there are charges for cash deposits.
The account can be integrated with other third party platforms, so your banking activity can be recorded in real time with your accounting, bookkeeping or tax software, for example.
A debit Mastercard card is available, and the account is also compatible with Apple Pay and Google Pay.
How to open a Starling Bank business account
This account can be easily in the app or online – but you will still need to provide information about you, your business and trading.
Starling is signed up to the Current Account Switch Guarantee service, which means it will switch all of your direct debits and standing orders if you switch from another bank – all within seven working days. And any problems or losses incurred as a result of the switch will be fully covered.
The other major plus point is Starling’s UK-based customer service team, available 24/7. Starling scores a top rate of 78% for customer experience on the independent review website Fairer Finance.
Starling is a UK-regulated bank, which means customers’ deposits are protected under the Financial Services Compensation Scheme (up to £85,000 per person) if the bank went bust.
Is a Starling Bank business account the right choice?
Starling Bank is a popular choice among business users and ranks well for customer service support. The account is free, although some charges apply for cash deposits and bigger cheques need to be sent by post (with a maximum limit of £5,000 per day for cheque deposits). This means the account won’t suit businesses that deal with large amounts of cash or cheques.
