Starling Bank to scrap 3.25% interest rate from popular current account within days

Starling is to remove the generous 3.25% it pays on current accounts from next week – what does this mean for customers and should you move?

Starling Bank mobile app
(Image credit: Photo by ADRIAN DENNIS/AFP via Getty Images)

Starling Bank is to scrap the 3.25% interest rate on its current account on Monday, 10 February. While the bank is not necessarily known for having the best savings, it is popular for its current account offering and digital capabilities.

Before this change, Starling’s current account offered the fourth-best rate on the market, payable on balances up to £5,000, and has been listed as one the the best current accounts for online banking by the Competition and Markets Authority.

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Instead, Starling Bank launched a 4% easy-access savings account in November – but a recent MoneyWeek investigation found that a large number of customers were being rejected for the savings deal, with no explanation from Starling.

In a separate statement on the bank’s current account changes, a Starling spokesperson told MoneyWeek: “We regularly review our products so we can be the best bank we can be and help our customers achieve their financial goals.

“Whilst we’re removing the interest on current accounts – which was notified to customers in November 2024 – customers can still benefit from the other award-winning current account features, alongside 24/7 UK-based customer service, and industry-leading app security.”

Starling current account: should you switch?

Despite the interest rate being scrapped, Starling’s current account still offers some attractive features, including no fees when you spend abroad and a range of budgeting tools.

If you like digital features and the convenience of online banking, you will probably be a fan of the user experience with Starling. The app gives you spending insights so you can see where your money has gone over the past month. This includes more than 50 categories, from groceries and bills to holidays.

Naturally, some customers will be frustrated by the challenges they have run into when trying to open a new savings account. However, if you are broadly happy with your current account experience, the disappearance of the 3.25% interest rate might not be enough of a reason to switch in its own right.

If you decide to stick with Starling’s current account but don’t have a separate savings account already, make sure to open one. There is nothing stopping you from doing this with a separate provider, particularly given the reported challenges at Starling at the moment.

“Those who are looking for a higher rate of interest would be wise to compare the latest easy-access accounts on the market and be conscious of rates coming down in the weeks ahead because of the base rate cut,” says Rachel Springall, finance expert at comparison site Moneyfacts.

She adds: “Coventry Building Society pays an attractive 4.85% on its new 4 Access Saver, but cuts are coming to the market-leading deal from Chase next week, which currently pays 5% AER (4.89% gross).”

Katie Williams
Staff Writer

Katie has a background in investment writing and is interested in everything to do with personal finance, politics, and investing. She enjoys translating complex topics into easy-to-understand stories to help people make the most of their money.


Katie believes investing shouldn’t be complicated, and that demystifying it can help normal people improve their lives.


Before joining the MoneyWeek team, Katie worked as an investment writer at Invesco, a global asset management firm. She joined the company as a graduate in 2019. While there, she wrote about the global economy, bond markets, alternative investments and UK equities.


Katie loves writing and studied English at the University of Cambridge. Outside of work, she enjoys going to the theatre, reading novels, travelling and trying new restaurants with friends.