Name: Starling Bank Review
Item: Starling Bank
Rating: 4.8
Author: Business Expert

Should you sign up for a Starling business bank account? We’ll compare the pros and cons of this popular account, so you can make the best decision for your business.

Starling Business Account Review: My Verdict

The Starling Business Bank Account is ideal for UK small business owners seeking a cost-effective, technologically advanced banking tool. Its absence of monthly fees significantly reduces overhead costs, making it appealing for budget-conscious businesses.

The account’s advanced digital tools, such as automated spending categorisation and seamless integration with leading accounting software like Xero and QuickBooks, streamline financial management, which is perfect for sole traders and small businesses focused on efficiency.

Starling also offers 24/7 UK-based customer support, ensuring assistance is always available without needing in-person branch visits.

However, the current unavailability of new multi-currency accounts may deter businesses requiring immediate international transaction capabilities.

Additionally, while the account accommodates multiple directors, the inability to grant direct access to external accountants may limit its appeal for larger teams.

Compared to other challenger banks like Tide or Revolut, Starling stands out for its superior user experience and customer service. However, its current lack of multi-currency functionalities is a notable limitation.

>>Compare against a range of other accounts in our best business bank accounts comparison

Open Account

4.8

Rated by Business Expert

Monthly Fee

£0

Bank Transfers

£0

Card Purchases

£0

Overdraft

Yes

FSCS Protection

Yes

Our Rating

Accessibility

Access your Starling Bank account via the web or mobile app

Open Account

On Starling Bank’s Website

Pros & Cons

Starling Business Account At A Glance

The Starling Business Account is tailored to small UK businesses. It offers a comprehensive suite of features summarised in the table below. This comparison is designed to help you quickly determine the account’s alignment with your business needs.

Features	Details
Monthly Fee	£0
Transaction Costs	Free UK bank transfers, no fees for card payments abroad
Overdraft Availability	Not currently accepting new applications
App Features	Mobile and online banking, real-time notifications, spending insights
FSCS Protection	Eligible deposits protected up to £85,000
Customer Support	24/7 UK-based human support via app, phone, or email
Cash Deposit Fee	0.7% per deposit at Post Office (minimum £3)
Multi-Currency Accounts	Currently not accepting new applications

Starling Business Bank Account Pros & Cons

Pros

No Monthly Fees: The account is free, significantly reducing business costs and making it an attractive option for startups and SMEs looking to minimise operational expenses.
User-friendly Mobile App: This feature is particularly beneficial for entrepreneurs who need to manage their finances on the go.
24/7 UK-Based Support: Access to real-time assistance from human agents ensures issues are promptly addressed, enhancing customer satisfaction and trust.
Excellent Money Management Tools: Automated categorisation and receipt capture features facilitate efficient financial management, helping businesses easily track their spending.
Free International Card Use: This program eliminates fees on card payments and ATM withdrawals abroad, benefiting businesses with international dealings by reducing transaction costs.

Cons

Cash Deposit Fees: Depositing cash at the Post Office attracts a 0.7% fee, which could be costly for cash-heavy businesses such as retail stores and restaurants.
No Branch Access: The lack of physical branches may deter those who prefer in-person banking services, impacting businesses that value face-to-face interactions for complex transactions.
Limited Multi-Currency Options: Restrictions on new Euro and US Dollar account applications limit flexibility for handling international transactions, posing challenges for businesses engaged in global trade.

Who Should Consider the Starling Business Bank Account?

Ideal For

Freelancers and Sole Traders: This account eliminates monthly fees and enhances financial management with automated expense categorisation and tax estimation, simplifying operations for solo business owners.
Small Limited Companies and LLPs: It supports multi-director access and integrates seamlessly with leading accounting software, streamlining financial tasks for small businesses.
E-commerce Businesses: Tailored for online operations, this account offers robust digital tools and free international card usage, catering specifically to the needs of e-commerce enterprises.

Less Suitable For

Cash-Heavy Businesses: The 0.7% fee for cash deposits at the Post Office could be costly for businesses that frequently handle cash transactions.
Businesses Requiring In-Person Support: Starling’s online-only model lacks physical branches, which can be a challenge for those who prefer personal interaction.
Businesses Needing Immediate Multi-Currency Accounts: Starling is not accepting new applications for Euro and US Dollar accounts, potentially hindering businesses requiring immediate multi-currency facilities.

What Are the Key Features of the Starling Business Account?

The Starling Business Account is designed for small UK businesses prioritising advanced, digital-first banking solutions. Its comprehensive suite of features significantly enhances financial management.

Mobile App Integrations: At the heart of Starling’s service is its mobile app, which provides a seamless user interface. It seamlessly integrates with leading accounting software such as Xero, QuickBooks, and FreeAgent. This integration not only automates data entry but also minimises errors and ensures that financial records are consistently accurate and up-to-date.
Real-Time Notifications: The account offers instant transaction notifications, crucial for maintaining financial oversight. This feature assists in promptly detecting discrepancies, helping to prevent missed payments or potential fraud, thereby safeguarding your business finances.
Expense Management: Organise your business’s expenses by creating Spaces in just a few taps. You can also create a virtual debit card for each Space to help you manage your budgets.
International Payment Options: Starling excels in supporting international transactions, facilitating business operations in 34 countries. It offers transparent fees and competitive rates, allowing direct payments up to £10,000 from GBP accounts. This feature particularly benefits businesses looking to operate globally without incurring hidden costs.
Optional Extras: Enhance your Starling Business Account further by choosing optional extras. The Business Toolkit unlocks accounting and bookkeeping features including instant invoices, tax estimations and VAT submission. The Bulk Payments tool lets you send up to 250 payments per month to streamline financial admin.

Starling Business Account Pricing Details

The Starling Business Account is renowned for its cost-effectiveness, making it an especially attractive option for small businesses. Below is a detailed overview of its fee structure:

Fee Type	Cost & Description
Monthly Fees	The Starling Business Account and the Sole Trader Account are free of monthly charges.
UK Payment Charges	Starling offers fee-free standard UK bank transfers, including those via the Faster Payments network.
ATM Withdrawals	ATM withdrawals are free within the UK and internationally.
Card Payments Abroad	International card payments are also free of additional charges with Starling.
Cash Deposits	Cash can be deposited at Post Office branches for a fee of 0.7%, with a minimum charge of £3 per transaction.
Cheque Deposits	Cheques up to £1,000 can be digitally deposited without fees.
Business Toolkit	This extra feature provides enhanced bookkeeping and tax preparation capabilities for an optional £7 per month (including VAT).
Bulk Payments	An additional feature enabling you to send up to 250 payments each month for £7 per month (VAT exempt)

Compared to other challenger banks such as Tide and Revolut, Starling’s absence of monthly fees offers a clear financial advantage, as these competitors often have monthly fees or transaction limits. Traditional banks, on the other hand, tend to levy higher fees across a range of services, positioning Starling as a more cost-effective choice for businesses aiming to maximise operational efficiency.

Starling’s transparent pricing model and the absence of hidden fees highlight its value proposition for small businesses. The flexibility to add services as needed allows businesses to tailor their banking experience and pay only for essential services, promoting affordability and scalable business growth.

Ease of Use

The Starling Business Account offers a streamlined online banking experience specifically designed for business owners’ demanding schedules. Its mobile app is exceptionally intuitive, providing a user-friendly platform that makes financial management straightforward while on the go. The app’s clean interface and straightforward navigation facilitate quick access to essential banking functions directly from a smartphone or tablet.

Onboarding Process

Quick Setup: The account setup process is efficient, typically requiring only 10 minutes. This includes downloading the app, entering personal and business details, and completing identity verification with a government-issued ID and a brief video.
Guided Steps: Each process step is accompanied by clear, concise instructions, ensuring users can complete the setup independently without needing external help.

Mobile App Interface

The dashboard offers a comprehensive snapshot of your account balances, recent transactions, and spending insights, providing a detailed overview at a glance.
Real-Time Notifications: Immediate alerts for all transactions help effectively monitor finances and swiftly detect any unusual activity.
Spaces Feature: This functionality allows users to earmark funds for specific purposes such as tax obligations or upcoming expenses, which assists in better financial organisation.

Navigating Common Tasks

Making Payments: The ‘Payments’ tab makes setting up new payees and transferring funds easy. It includes a memory function for frequently used payees, which speeds up future transactions.
Expense Management: The app facilitates receipt capture and categorisation, streamlining record-keeping and supporting efficient tax preparation.
Card Controls: Features like instant card freezing or unfreezing via the app enhance security and provide greater independence, reducing the need for customer support.

Starling’s dedication to digital-first banking ensures that these features are seamlessly integrated, reducing the time spent on financial management and allowing more time for business growth.

How Secure is Staling Bank for Your Business Finances?

Starling Bank ensures the safety of your business’s finances through rigorous security measures and adherence to UK banking regulations.

Each deposit is safeguarded up to £85,000 by the Financial Services Compensation Scheme (FSCS), providing a robust safety net. Additionally, Starling is fully licensed and regulated by the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA), guaranteeing compliance with stringent standards.

The bank employs advanced encryption technologies to protect your data and transactions. Enhanced security is further supported by two-factor authentication (2FA), requiring identity verification through multiple methods. The in-app card controls offer the ability to instantly lock or cancel cards if lost, adding an extra layer of security.

Starling’s dedication to security is validated by its strong track record and multiple industry awards, underscoring its status as a trustworthy digital banking leader.

How Does Starling Bank Support Its Business Customers?

Starling Bank provides a robust suite of customer support options tailored to the needs of business owners seeking prompt and effective assistance:

Live Chat: Available 24/7 via the Starling app, this service connects you immediately with UK-based agents, making it ideal for quick inquiries.
Phone Support: Starling offers a dedicated phone line with knowledgeable representatives known for their swift responses for more complex issues or when a direct conversation is preferred.
Email Support: Suitable for non-urgent questions or document submissions, Starling strives for prompt email responses, although times may vary.

The live chat feature is recommended for immediate concerns, offering real-time interaction and convenience. Importantly, all support avenues are manned by real people, ensuring personalised and efficient solutions to your banking queries.

What Do Customers Say About Starling Business Accounts?

Starling Business Account consistently receives high ratings on major review platforms, affirming its reliability. It boasts an impressive 4.3 out of 5 stars on Trustpilot from thousands of reviews, where customers particularly praise its user-friendly mobile app and efficient 24/7 customer service.

On Smart Money People, the account achieves a remarkable average rating of 4.92 out of 5 stars, based on over 7,500 reviews, with 96% being five-star ratings. Users highlight its seamless integration with accounting software, intuitive app design, and features like real-time notifications and “Spaces” for financial management.

While overwhelmingly positive, some feedback points to limitations such as the lack of multi-currency accounts and issues faced by businesses with more complex needs. Despite these minor criticisms, the general consensus among users is that Starling is a top choice for small businesses seeking a digital-first banking tool, further underscored by its accolades in banking innovation.

What Are the Eligibility Requirements for a Starling Business Account?

To qualify for a Starling Business Account, your UK-based small business must meet specific eligibility criteria to comply with regulatory standards. Here are the essential requirements:

Legal Structure: Your business must be registered as a Limited Company, LLP, or Sole Trader at Companies House. Unfortunately, general partnerships and certain types of charities do not qualify.
Residency: All Persons of Significant Control (PSCs) and directors must be UK residents. Your business operations must be primarily outside the UK to be eligible.
Business Status: Your business must be actively trading and not involved in prohibited activities like defence manufacturing, gambling, or adult entertainment.
Credit Check: A standard credit assessment is conducted to ascertain your financial stability during the application process.
Industry Restrictions: There are specific restrictions on businesses that handle client money, such as solicitors, unregulated charities, and political parties.

These criteria are designed to ensure a smooth onboarding process and enable Starling to offer efficient and reliable service to its clients.

How to Open a Starling Business Bank Account: Step-by-Step

Applying for a Starling Business Bank Account involves a series of straightforward steps, which can be completed swiftly using their mobile app. Here’s the streamlined process:

Download the Starling Bank App: Begin your application by downloading the Starling Bank app from the Apple App Store or Google Play Store. The app is crucial for both account management and the application process.
Create an Account: Launch the app, select ‘Create an Account’, and enter your email and a secure password. Complete the email verification as prompted.
Select Business Account Type: Choose either a sole trader or business account depending on your business structure. Check that you meet the eligibility requirements for your chosen account type.
Verify Your Identity: Upload a government-issued photo ID, such as a passport or UK driving licence, and conduct a brief video verification to confirm your identity and comply with security measures.
Provide Business Details: Input your business’s registered name, address, and, if relevant, your Companies House registration number. Clearly describe your business activities.
Submit Your Application: Review all details for accuracy and submit your application. Starling Bank processes applications promptly, and you will be notified via email once your account is approved.

Comparing Starling Bank, Tide, and Revolut: Which is Best for Your Business?

Starling Bank stands out by eliminating monthly fees and offering robust features designed explicitly for UK small businesses, such as seamless integration with popular accounting software like Xero and QuickBooks. Its commitment to providing 24/7 UK-based human customer support ensures real-time assistance, significantly enhancing its value for businesses prioritising immediate and personalised service.

Tide offers a compelling free basic account with a strong emphasis on expense management and invoicing, catering well to businesses prioritising these functions. However, its customer support is limited to business hours, which might not meet the needs of companies requiring continuous support.

Revolut emerges as a formidable option for businesses with international dealings. It provides multi-currency accounts and sophisticated budgeting tools. While it offers a cost-free basic account, the premium plans have enhanced features. Nevertheless, the variable international transaction fees could be crucial for businesses frequently involved in overseas transactions.

Get £100 when you sign up with code BCA100