Starling is scrapping interest from its current and joint accounts. (Image: Getty)
Starling Bank will no longer pay interest on its personal and joint bank accounts from Monday, 10 February.
If you have a personal current account with Starling, you will no longer be paid 3.25% AER (variable) interest on account balances up to £5,000.
The change is believed to affect 3.6 million current account customers, according to Alastair Douglas, chief executive of TotallyMoney.
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Douglas said: “Starling regularly tops the polls for being one of the best British banks, and has seen consistent growth in the current account market with 3.6 million customers now holding £11bn in deposits.
“However, from Monday, the bank will be scrapping interest payments on personal and joint current accounts. This means you should move your money, or see your buying power reduced as a result of inflation.”
Starling customers have the option to open an Easy Saver, which gives them unlimited access to their funds and offers an of 4.00% AER on up to £1 million.
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Doublas said: “That way you can still use the Starling account day to day, but that you’ll just have to be a bit more savvy when it comes to moving your money between accounts to get the most out of the bank.
“Another option could be to move your savings elsewhere.
“If you’re thinking about doing this, then it’s worth weighing up all your options, including setting up an ISA, finding a fixed-term account, or a notice savings account. However, the easiest option might just be to find another easy-access savings account, so you can withdraw whenever you like — and there’s a handful currently offering inflation-busting . Just remember that loyalty doesn’t pay, but moving your money can.”