See how much interest you can earn
Earn 3.25% AER (3.19% Gross) variable interest on balances up to £5,000. Use our free interest rate calculator to see what that means for you.
See our FAQs below for more information about interest rates.
How much interest could I earn on my current account?
Balance£0
3.25% AER / 3.19% Gross variable interest
These estimates are for illustrative purposes only and assume that you pay the money into your account on the first day of the month. To work out the interest, we also assume that you don’t make any withdrawals or additional deposits, that the interest rate doesn’t change, and that there are 365 days in the year. Interest is calculated daily and paid monthly
AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded once each year. Gross is the contractual rate of interest payable before the deduction of income tax at the rate specified by law.
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Interest rates explained
What is Starling’s interest rate?
Earn 3.25% AER / 3.19% Gross (variable) interest on balances up to £5,000. Interest can be earned on balances in Starling personal, teen and joint accounts, which includes money kept in a Saving Space or on a Kite debit card for kids or Connected card.
This means, if you have both a personal account and a joint account, you could earn interest on both of these accounts. Interest could be earned on a balance up to £5,000 in your personal account and on a balance up to £5,000 in your joint account.
What is Gross interest?
If a bank pays you ‘Gross’ interest, this means that the bank hasn’t taken off any tax you might owe on the interest you’ve earned. You can access an interest statement in the app and may need to declare the interest you earn on this product in your self-assessment tax return.
It’s also worth noting that a gross interest rate is a simple rate of interest and doesn’t factor in any compound interest.
What is compound interest?
Compound interest is the idea that you can earn interest on interest. For example, if you start with £100 in your Starling current account, you’d earn interest on your balance after your first day. Then, on your second day you’d earn interest on your £100 plus the interest you had already earned, and so on. (Please note that although we calculate interest daily, we pay interest monthly).
What is AER interest, and how is it different from Gross interest?
AER stands for Annual Equivalent Rate. Unlike Gross interest, AER factors in compound interest – it illustrates what the interest rate would be if interest was paid and compounded once each year. This means that one AER can easily be compared to another because the same method of calculation is used.
When will my interest be paid?
We pay interest on the first day of each month.
If I have more than £5,000 in my account, what happens?
For any money in your personal, teen or joint account above £5,000, you won’t earn interest. This means that if you have £5,100 in your account, you will earn interest on the £5,000 and no interest on the additional £100.
Can Starling change the interest rate?
Yes, the interest rate we offer is subject to change. If we decrease it, we’ll always let you know in advance.
Can I opt out of earning interest?
Yes, if you’d prefer not to earn interest on your positive balances, you can move to 0% interest by contacting our support teams.
Still confused about some jargon? Check out our glossary for more explainers of common banking terms.
Saving for a long-term goal?
Lock away savings in our 1-year Fixed Saver and earn a fixed interest rate of 4.05% AER/gross interest – minimum deposit £2,000.
Fixed Savers are not available to all customers. If they’re available to you, you’ll be able to apply for one in the Spaces section of the app or by logging on to online banking.
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