Can I apply for an overdraft?
When you open an account with Starling, you may be offered an overdraft subject to some quick checks about you with a Credit Reference Agency to make sure we’re offering you an overdraft that’s both affordable and manageable.
What interest is charged?
If you do have an overdraft with us, we charge interest at 15% EAR* – this is the actual rate you will pay (we may update rates from time to time). Interest is accrued daily, charged monthly and it’s all updated in your app.
*Equivalent Annual Rate (EAR): the rate of interest you would pay over a year if you were to remain overdrawn. An EAR is a common way of showing interest rates on overdrafts which you can use to compare different banks’ interest rates. An EAR does not include fees that some banks may charge you in addition to interest. Starling does not charge additional fees.
We understand that everyone can slip up from time to time so if your total overdraft interest charges are less than 10p at the end of any given month, we will waive your interest charge for that month.
What can I do if I’m struggling to pay off my overdraft?
Starling’s budgeting tools are there to help you. But if you do end up struggling and feel like you’re stuck, we will try to help — contact customer support in-app via Live Chat, message or phone. Also, free debt counselling, debt adjusting and providing of credit information services is available from the Money Advice Service. You can find out more by visiting the Money Advice Service (https://www.moneyadviceservice.org.uk/en/tools/debt-advice-locator) website.
See how our overdraft compares using our interactive tool (https://www.starlingbank.com/current-account/overdraft/#overdraft-calculator)