Starling Bank Business Account Review [2024]: Features & Fees

Founded in 2014, Starling Bank is a British digital neobank headquartered in London. It is a licensed bank regulated by the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) in the UK.

Starling operates exclusively online on the mobile app without any physical branches, offering a competitive pricing structure to high-street banks. It provides a range of banking products, including personal, business, and joint current accounts, along with features such as savings, overdrafts, and loans. 

Known for its innovative banking solutions, the bank was named the Best Banking App at the British Bank Awards in 2024.

Starling Bank Pros and Cons

Business Accounts

Starling offers two types of business bank account options for different business structures.

• Business Current Account for limited companies or LLP with multiple directors.
• Sole Trader Account for self-employed business owners not in partnership with others.

There are no significant differences between these two types of business accounts in terms of features. Below are Starling Bank's business account features.

• Send and receive free domestic UK bank transfers (with a limit of up to GBP 250,000 per transaction)
• Send and receive international bank transfers via the SWIFT network (with a limit of up to GBP 10,000 per transaction)
• Schedule payments and make standing orders (recurring payments)
• Deposit cash at the post office branches throughout the UK*
• Mobile cheque deposits for up to GBP 1,000
• Withdraw cash at ATMs for free up to 6 times per day with a daily limit of GBP 300
• Automate expense categorisation to organise your business expenses
• Snap receipts with your phone to track  your payments
• Earn 3.25% interest by setting aside your funds to a saving feature or Saving Spaces.
• Accounting software integration (Xero, QuickBooks, and FreeAgent)
• Connect with other bank accounts to consolidate your funds from multiple accounts into a single dashboard.
• Eligible deposits of up to GBP 85,000 are protected under the FSCS protection scheme.

*Cash deposit limits are GBP 5,000 per day (both types of accounts), GBP 100,000 per year (regular account), and GBP 20,000 per year (freelance account)

In addition to these standard features, users can customise their business accounts with add-ons for extra functions, such as invoicing tools and local currency accounts. 

Business Toolkit

Starling Bank's Business Toolkit is an additional feature designed to streamline accounting and bookkeeping for small businesses, freelancers, and sole traders. It comes with invoicing, tax calculation, and expense management features to help you track your cash flow.

Business Toolkit is an optional add-on to the existing business account. Starling offers a free trial for the first month, after which it will charge GBP 7 monthly.

With a Business Toolkit, you will be able to do the following:

• Create, duplicate, send, and track invoices.
• Keep track of your bills and schedule invoice payments. 
• Connect to your HMRC profile.
• Calculate, record, and pay VAT electronically. 
• View your profit and loss statement based on your transactions.
• Get insight into your tax liability, including loan repayments.
• Keep track of your expenses, including suggestions for what is eligible for tax deductions.

This feature is currently available only on desktop online banking. It is not available on the mobile app.

Local Currency Accounts

As a business user, you can add a euro and/or US dollar account to your existing Starling business account, each with its own unique account details. This add-on option allows you to hold, store, receive, and make payments in EUR or USD in addition to GBP.

Starling Bank also provides financing products as the following:

• Business Overdraft: Eligible limited companies and limited liability partnerships can apply for a business overdraft from GBP 1,000 to GBP 50,000, with a 1.75% arrangement fee at acceptance and annually. A personal guarantee is required as security.
• Business Loan: Starling business customers can apply for business loans from GBP 25,001 to GBP 250,000 with a fixed interest rate and repayment terms between 12 to 72 months. Subject to credit checks on both the company and directors.

Starling Bank’s Feature Rating is 3.5/5

Starling's business account offers extensive features tailored to various business needs, from day-to-day banking to cross-border transactions and financial management tools. The flexibility, digital innovation, and security measures are their strong points.

However, the absence of EUR and USD accounts for new clients is a significant drawback. This limitation reduces access to key cross-border banking services, making Starling less appealing to companies with global needs.

Opening a business account with Starling Bank is free, and there are no monthly fees for the business accounts.

Below are the fees for other business banking services provided.

Starling Bank’s Fee Rating is 4.5/5

Starling Bank offers a very competitive and transparent fee structure. The GBP 0 monthly fee provides excellent value, considering this plan allows customers to access extensive essential business banking services.

The additional costs for specific services and add-ons are generally reasonable and allow businesses to tailor their banking experience to their needs. While certain transactions and services have minor costs, these are mostly in line with or better than industry standards.

Starling offers free 24/7 customer support via phone, email, and live chat with human agents. In-app chat is the fastest way to get responses.

You can email Starling Bank at help@starlingbank.com for non-urgent queries. You can also call them at 0207 930 4450 if you are in the UK.

Starling does not have any physical branches.

Starling Bank’s Customer Support Rating is 4.5/5

Starling provides multiple customer support channels around the clock. The emphasis on human interaction in phone and chat services likely enhances the quality of support received. 

Digital and online-based services are convenient in modern times. However, the absence of physical branches might limit options for those who prefer direct in-person support or are less familiar with digital banking platforms.

You must be a UK resident with valid proof of address to open a Starling business account or sole trader bank account. Companies with an overseas shareholder are not eligible to apply. 

You can check if you are eligible to open a business account on the Starling website. However, your eligibility will be confirmed after your application has been reviewed. To successfully open a business account, you must also meet Starling’s standard AML, KYC, fraud, and credit checks.

Business Current Account Eligibility

• You must be a Limited Company or LLP registered at Companies House
• All Persons of Significant Control (PSCs) must be UK residents
• All directors with access to the account are UK residents
• You do not own or manage your business through a separately incorporated legal entity
• Your business must not be a holding company, dissolved, or in liquidation.
• No corporate shareholders
• No engagement in prohibited industries or activities

Sole Trader Account Eligibility

• You are the sole trader of your business
• You are not in partnership with others
• Your business is not registered on Companies House
• No engagement in prohibited industries or activities

Starling Bank does not provide either type of business account to some industries or business activities, such as:

• Businesses that hold client money (e.g., accountants and solicitors)
• Businesses that manufacture or distribute weapons
• Dealing in antiques, art, watches, or jewellery. 
• Mining and commodities

You can apply for a business account online on the website or via the Starling app. You will need to provide a valid photo ID and evidence of your trading activities, such as signed agreements or contracts, registrations, licences, or bank statements. Starling may request additional documents depending on the nature of your business.

The Ease of Opening an Account for Starling Bank is 4/5

Opening a Starling business account seems straightforward and user-friendly, especially for those who meet the eligibility criteria and have their documents ready. The digital application process is a modern convenience, especially for small businesses, compared to traditional banks.

However, individual experiences can vary based on the business's specific circumstances.