Starling Bank customers warned to make an urgent switch this week – or lose hundreds of pounds of interest

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Starling Bank customers will need to move their money from its current account into a savings account or face earning nothing on their cash.

As we exclusive revealed in November, Starling will remove the 3.25 per cent current account interest payments on balances up to £5,000 entirely from Monday 10 February. 

The change will affect both personal and joint current account holders.

Instead, it has launched an easy-access savings account which pays 4 per cent interest on balances up to £1million – Financial Services Compensation Scheme protects money, including at Starling, to the tune of £85,000.

At the time, 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.

‘Customers will still benefit from fee free spending abroad and 24/7 customer service.’

Customers risk earning nothing on their balances if they don’t put their cash into Starling’s new savings account.

Starling customers could also move their savings elsewhere, either into an Isa, a fixed-term account, or a notice savings account.

While the 4 per cent on offer from its easy-access saver isn’t terrible, there are many better deals available in our independent best buy savings tables.  

For example, Coventry Building Society has an easy-access savings account paying 4.85 per cent, which launched yesterday.  

Someone putting £5,000 in this account could expect to earn £204 in annual interest, if the rate remains the same.

That compares to £162.50 if £5,000 was sat earning 3.25 per cent in its previous current account interest offer. 

There are 15 easy-access rates in our tables that beat 4 per cent.

Chip* is also offering an easy-access deal paying 4.85 per cent, but this is pumped up by a six month bonus.

Elsewhere, the best one-year fixed deal is offered by Vida Savings paying 4.77 per cent.

Those wishing to keep their money in an easy-access cash Isa which they can dip in and out of can get 5.16 per cent with Trading 212’s flexible cash Isa* using code TIM to receive a 0.26 per cent bonus.