Experts warn Brits to move money out of major UK bank after change

The bank has 3.6 million UK customers

From 10th February 2025, Starling Bank will scrap interest on 3.6 million current account customers after offering 3.25 per cent AER on balances up to £5,000.

Customers unhappy about the change to their account are being urged to move their money, with some banks and building societies still paying interest on current account balances.

According to Which?, Nationwide Building Society’s FlexDirect, Santander’s Edge Up and Lloyds’s Bank Club Lloyds still pay interest on current account balances, acting as a hedge against inflation.

Commenting on Starling’s decision to scrap interest payments, Alastair Douglas of TotallyMoney said:

“Starling regularly tops the polls for being one of the best British banks, and has seen consistent growth in the current account market with 3.6 million customers now holding £11 billion in deposits.

“However, from Monday (10/2), the bank will be scrapping interest payments on personal and joint current accounts. This means you should move your money, or see your buying power reduced as a result of inflation.

“The good news for die-hard Starling fans is that the bank has launched an Easy Saver which gives customers unlimited access to their funds, with an interest rate of 4.00 per cent AER on up to £1 million.

“That way you can still use the Starling account day to day, but that you’ll just have to be a bit more savvy when it comes to moving your money between accounts to get the most out of the bank.

“Another option could be to move your savings elsewhere. If you’re thinking about doing this, then it’s worth weighing up all your options, including setting up an ISA, finding a fixed-term account, or a notice savings account.

"However, the easiest option might just be to find another easy-access savings account, so you can withdraw whenever you like — and there’s a handful currently offering inflation-busting interest rates. Just remember that loyalty doesn’t pay, but moving your money can.”