Starling Bank announces interest rate drop

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It’s happened. Earlier this week the Bank of England dropped their interest rate from 0.75% to 0.25% in an effort to boost the economy throughout the Covid-19 outbreak.

While this is good news for borrowers, this isn’t the best news for savers looking to get a decent amount back on their cash savings (not that they’ve had much to celebrate anyway since the 2008 financial crash).

Interest rates

As a result, Starling Bank have dropped their interest rate on their personal and joint accounts by 90% to 0.05% on savings up to £85,000.

The rate wasn’t amazing anyway at 0.5%, with many other better options to put your cash, but this is still disappointing nonetheless (albeit expected).

This was only ever a spending account for me, and not one I’d be looking to store any serious cash in, but this further drop serves as even more of a reason to learn about investing in order to make your money work harder for you.

I’m still a big supporter of Starling bank and what they’re doing within the fintech/ banking space; I’ll have a proper review coming soon.

 

 

2 thoughts on “Starling Bank announces interest rate drop

  1. I used to get a couple of quid from Starling in interest, now it’ll be pennies. Can’t really complain as it’s my emergency cash, so not really to bothered about it earning next to nothing. Funny how the banks are so quick to slash the interest rates on savings, not a peep from my mortgage lender about reducing that rate!. Same old, same old!

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    1. Yeah I only ever use Starling as my spending accounts on things like coffee and beer, so the interest was never a game-changer for me. Just a shame it’s dropped by so much, so quickly!

      Liked by 1 person

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