Major bank with 3.6 million customers to stop paying 'all' customers interest

A big online bank with 3.6 million customers is set to AXE a popular feature that could see them miss out on cash. Starling Bank is to stop paying all of its customers interest on their current account balances in the new year, as first reported by the MailOnline.

The digital bank will stop paying all customers 3.25 per cent interest on their current account balances from 10 February 2025 - and is removing the perk entirely. Currently, Starling current account customers receive the bumper interest on their current account balances up to £5,000.

A Starling Bank spokesman, said: "We continually keep our products under review and have taken the decision to remove current account interest from 10 February 2021. Over the last couple of weeks we have notified all customers of the new current account terms and conditions in the Starling app.

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"Customers will still benefit from fee free spending abroad and 24/7 customer service." New and existing sole or joint current account customers will carry on earning interest on balances up to £5,000 until 10 February 2025. James Blower director of Savings Guru said: "Paying in-credit interest on current accounts will get less profitable for Chase in a falling interest rate environment.

"This is a cheap way to potentially attract extra savings balances now but pay a lower rate when the bonus expires." For customers still wanting to save with Starling, the bank has introduced an easy-access savings account paying 4 per cent interest.

It comes after the Bank of England (BoE) dropped the base rate from 5% to 4.75% earlier this month. Kroo also offers interest on balances held in its current account and pays 3.65 per cent on current account balances.

This rate tracks at 1.1 per cent below the Bank of England base rate, which currently stands at 4.75 per cent.