Customers of digital bank Starling who want to deposit regularly cash over Post Office counters will face a fee for doing so from March, the startup announced.
Starling Bank doesn’t have any physical locations. Instead, customers who wish to deposit cash into their current accounts can do so at 11,500 Post Office locations. Currently, deposits are free of charge, with a maximum of £5,000 per calendar year and £5,000 in a single deposit permitted.
Currently, those deposits are free of charge. But from 1 March 2022, Starling account holders will face fees if they deposit more than £1,000 into their account per calendar year. Deposits exceeding this threshold will incur a fee of 0.7% of the deposit.
Starling says that this fee will reflect the “true cost” of offering the service through the Post Office. But it says that only a small number of their 2.5 million UK customers will be impacted because most use online banking exclusively.
Customers can still deposit money electronically and via cheque without incurring fees.
The change reflects statements made by Starling founder Anne Boden in the spring. She told the FT’s Money Clinic podcast that she anticipates cash will disappear—potentially as early as 2030 but more likely “by 2033 or 2034.”
But despite forecasts of cash’s demise, it remains crucial to many Brits’ everyday lives. Research by the Financial Conduct Authority (FCA) found that in 2020, 10% of adults relied on cash for all or most of their daily purchases, including disproportionate numbers of adults who are digitally excluded, over 65, or on low incomes. Their access to cash has been threatened by the closure of bank branches and free-to-use ATMs.
But many of those customers have simply shifted to using the Post Office for everyday banking rather than ditching coins and notes. The Post Office handled its highest amount of cash ever last month: over £3 billion was deposited and withdrawn by personal and business customers over its counters.
To provide Brits with more places to access cash, the government in the spring passed legislation to allow consumers to access cashback from retailers without making purchases. The scheme is being rolled out to 2,000 shops by the end of the year.
However, cash-dependent people are unlikely to be customers of app-based bank Starling. In 2019, the average age of personal account customers with the bank was 35.
In fact, many of Starling’s users are likely among the 7.4 million people in the UK who are leading almost cashless lives.
Meanwhile, already a raging success in the current account market, Starling is diversifying into more complex—and lucrative—financial products, including mortgage lending.
FAQs
Personal and joint customers can deposit £1,000 each calendar year free of charge at the Post Office. For all deposits greater than this, we will charge you a fee of 0.7% of the amount over £1,000 that you deposit.
Does Starling charge to deposit cash? ›
If you have a business or a sole trader account, there is a 0.7% charge on each cash deposit, with a minimum charge of £3. Withdrawing cash at the Post Office counter is free for personal or joint accounts and 50p for business accounts (though you could use a Post Office ATM which won't charge you).
Does Starling bank charge for cash? ›
Spend and withdraw cash with your Starling current account anywhere, with no fees from us.
Does Post Office charge to deposit cash? ›
Is there a fee for making cash deposits at a Post Office branch? No charges are taken at the counter however some banks may charge for this service. Please contact your bank directly to check if they do.
Can I deposit cash at Post Office for Starling Bank? ›
Yes, you can deposit cash into your Starling account at any Post Office branch.
What is the maximum cash deposit for Starling Bank? ›
Cash limits
The business current account cash deposit limit is £5,000/day and £100,000/calendar year. The sole trader account cash deposit limit is £5,000/day and £20,000/calendar year.
How do I deposit cash to my Starling account? ›
There are many different ways you can add money to your account:
- Bank transfer using your Starling account number and sort code. ...
- Deposit cash at any Post Office across the UK.
- Pay in a cheque (you can submit cheques under £1000 in the app and post anything over £1000 to us).
Our online bank accounts for individuals
Free to open and easy to manage, with instant notifications, spending insights and no monthly fees.
Who is Starling Bank owned by? ›
100% independent. We're not owned by any other bank. We're part-owned by our founder Anne, employees and an employee benefits trust with investment from Harry McPike, a global private investor, Chrysalis Investments Ltd, Fidelity, Railpen, Qatar Investment Authority, Millennium Management and Goldman Sachs.
What are the downsides of Starling Bank? ›
Cons
- Interest of 15% to 35% EAR (variable) on arranged overdrafts.
- No cash switching offer.
- No cashback, perks or discounts.
Yes, if you have a Starling Bank debit card, you can use it to spend money outside the UK. You can use your card just like you would at home, paying for purchases in shops, restaurants and everywhere else that Mastercard and Visa payments are accepted.
Is there a monthly fee for Starling Bank? ›
Some bank accounts charge their customers a monthly fee for having the account. The Starling Bank account does not have any monthly charge.
Is Starling Bank safe? ›
How secure is Starling Bank? Starling Bank is a strictly regulated financial institution and you can find out more about how they're regulated here. It also offers up to £85,000 protection per person under the Financial Services Compensation Scheme (FSCS).
Are Starling Bank any good? ›
Starling Bank uses Trustpilot for its customer reviews and displays them on its website. It has 4.3 out of 5.0 stars based on more than 38,000 reviews and is rated as 'Excellent'. Most users like the budgeting tools and free international transfers and withdrawals.
Which is better Starling or Monzo? ›
In Finder's 2024 Banking Customer Satisfaction Awards, Starling won. It came joint first in our customer satisfaction survey, where it scored 4.9 out of 5 stars, and 100% of its current account customers said they would recommend the brand to a friend.
Can I use Post Office to deposit in bank? ›
You can pay cash and cheques into your account over Post Office® counters.
Can I pay money into Monzo at Post Office? ›
You can pay cash into your Monzo accounts at any UK PayPoint or Post Office. Your deposit will take around 10 minutes to show in your account. They'll ask you to insert your card into the card reader and follow the instructions on the screen.
How much does direct deposit cost? ›
Generally, banks charge a setup fee for direct deposit, ranging from $50 to $149 on average, according to the National Federation of Independent Business (NFIB). Some banks charge ongoing monthly fees for direct deposit, but most do not. Additionally, some banks charge various transaction fees.
How much can you deposit at the post office? ›
Post Office Monthly Income Scheme Account (MIS)
You can deposit a sum of Rs 1,000 up to Rs 9 lakh in a single account and up to Rs 15 lakh in a joint account. You can earn an interest rate of 7.4% p.a. for Q1 FY 2024-25 through this account and get a monthly fixed income from the scheme.
