Starling Bank launches its first savings account
Starling Bank has launched a 1-year fixed rate savings account at 3.25%.
Digital bank Starling now offers a 1-year fixed savings “Space” in its app.
The product has a guaranteed return of 3.25% over 12 months on balances of £2,000 or more.
Starling’s 1-Year Fixed Saver
Starling’s 1-Year Fixed Saver can be set up within the Spaces section of the app. You will need a Starling current account to access the new saver. Funds can be transferred immediately from your main account balance into the savings space. And you can set up multiple 1-Year Fixed Savers at once.
However, it’s important to remember that you won’t be able to access your savings for 1 year. Plus, you’ll only earn this rate on balances of £2,000 or more.
The interest will be paid at the end of the year, but you’ll be able to see how much interest you’ll earn before opening the “Space”. All your savings are covered by the Financial Services Compensation Scheme (FSCS) up to £85,000.
First fixed savings deal
Previously, there wasn’t much of an opportunity to earn interest with Starling. It offers 0.05% AER interest on personal account balances, and your Savings Spaces all contribute to your main balance when it comes to the interest you earn.
But up until now, there wasn’t a specific product generating a decent rate of interest. Savings Spaces are more of a virtual piggy bank than a formal savings account.
At 3.25%, the 1-Year Fixed Saver is competitive with other accounts on the market. There’s also the positive that you can set up multiple savers if you want to.
Starling Bank’s latest product innovations have all been centred around its Savings Spaces. The challenger brand’s newly launched virtual cards also link to personalised “Spaces”, allowing customers to keep payments when using the virtual card separate from their main account balance.
The new 1-Year Fixed Saver could be just the first of a whole range of savings products from the digital bank – we’ll be watching for further launches.
To compare 1-year savings bonds, use our comparison guide.