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

What is Starling Bank?

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 offers banking services exclusively online on the mobile app without any physical branches. It provides personal and business banking, including current, joint, and multi-currency accounts.

The bank was awarded the Best British Bank at the British Bank Awards for five consecutive years from 2018 to 2022.

Starling Bank Pros and Cons

Featured Reviews

Rich rates Starling ⭐⭐⭐⭐⭐

Recommended for small business owners and startups

I found it really simple and efficient to get set up with a business bank account and link to accountancy software etc. The app works really well, I actually enjoy using it. The security seems excellent but the service is still really user-friendly- the ideal balance in my opinion.

Source: Trustpilot review

Vijay Majithia rates Starling ⭐⭐⭐⭐⭐

Great customer service

Great customer service, easy to use app, free transactions, no banking fee's. What's not to love. I banked with HSBC for 15 years and decided to move to Starling Bank. Since then, I have receiving the benefit of no monthly fees and quicker and better 24 hour customer service. I highly recommend them if you have a small business.

Source: Trustpilot review

Starling Bank Features

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.

Both business and sole trader accounts can make free domestic UK bank transfers of up to £250,000 per transaction in the app, while the international bank transfer limit is £10,000. Starling Bank’s business users can also withdraw cash from ATMs without charges up to 6 times per day with a daily limit of £300. You can also deposit cash using the Post Office Counter Service throughout the UK.

With a Starling business bank account, you can organise your funds with Saving Spaces. This feature allows users to separate portions of their savings for different purposes, such as taxes, overheads, or transportation budgets.

As Starling is a regulated bank, all eligible accounts are protected up to £85,000 under the Financial Services Compensation Scheme (FSCS).

The table below shows other key features of Starling's business account. 

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

Multi-currency Accounts

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

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. 

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

Other Services

Starling Bank also provides the following services:

• 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. 
• 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 4.25/5

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. Their EUR and USD accounts simplify international transactions for UK-based business customers, potentially saving on conversion fees and making money transfers straightforward. The flexibility, digital innovation, and security measures are their strong points.

Fees Charged by Starling Bank

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

However, you can customise your business current or sole trader accounts by purchasing add-ons that fit your needs: GBP 2/month for a euro business account, GBP 5 for a US dollar business account, and GBP 7/month (including tax) for the Business Toolkit. Starling offers a free one-month trial period at the beginning of each add-on subscription. 

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 Bank Customer Support

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.

Eligibility Requirements for Opening a Starling Bank Business Account 

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.

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.

Starling Bank Alternatives