Major bank is axing popular current account feature from next week in huge blow for customers

The integer slope presently pays 3.25% involvement connected existent relationship balances up to £5,000, which gives customers £162.50 a twelvemonth - however, this perk volition beryllium removed for bully from February 10

Starling Bank volition no longer wage interest connected existent accounts from this Monday successful a large stroke for customers.

The integer slope presently pays 3.25% involvement connected existent relationship balances up to £5,000, which gives customers £162.50 a year. However, this perk volition beryllium removed for bully from February 10. Starling started contacting each existent relationship holders backmost successful November astir the change.

The slope has alternatively introduced a caller 4% easy-access savings account, which would wage retired £204 successful involvement implicit a twelvemonth if you had £5,000 saved. The caller savings relationship is linked to the modular Starling existent account. This complaint is variable, truthful it tin spell up oregon down - and determination are amended rates disposable elsewhere currently.

Right now, currency ISAs wage much than easy-access accounts. The champion currency ISA complaint close present is 5.03% from Trading 212, portion the champion complaint for mean easy-access accounts is 4.85% from Coventry Building Society and Atom Bank. Regular redeeming accounts wage adjacent much than this - but you're usually constricted to however overmuch wealth you tin prevention each month. For example, Principality Building Society pays 8% fixed for six months connected up to £200 a month.

A spokesperson for Starling Bank said: "We continually support our products nether reappraisal and person taken the determination to region existent relationship involvement from February 10, 2025 Over the past mates of weeks we person notified each customers of the caller existent relationship presumption and conditions successful the Starling app. Customers volition inactive payment from interest escaped spending overseas and 24/7 lawsuit service."

It comes aft the Bank of England denote it is cutting its basal complaint from 4.75% to 4.5%. The basal complaint influences the instrumentality you get connected your savings, and arsenic the apical rates inactive wage much than ostentation - which is presently astatine 2.5% - savers are advised to enactment accelerated earlier they autumn further.

Laura Suter, manager of idiosyncratic concern astatine AJ Bell, said: "Average rates person fallen successful the past twelvemonth and tons of radical volition beryllium earning piddly amounts connected their savings. Even if you took enactment to power accounts during the play of precocious savings rates, if it’s been much than a twelvemonth since you moved accounts you mightiness find the complaint you’re getting has plummeted and you request to ditch and power again."

Sarah Coles, caput of idiosyncratic finance, Hargreaves Lansdown, added: "More falls for fixed rates volition come, erstwhile the marketplace is convinced that much cuts are connected the way. At the moment, it looks similar this is immoderate mode off, particularly with tariff dramas fuelling unease implicit inflation.

"At times similar this, it’s casual to beryllium bamboozled to a afloat stop, unsure arsenic to whether rates volition emergence again earlier they fall. However, it if you bent on, successful the interim you could beryllium missing retired connected immoderate rewarding deals - particularly implicit somewhat longer periods. Rather than waiting for the champion imaginable infinitesimal to fix, it makes consciousness to instrumentality vantage of the champion deals portion they last"