Starling overdraft

Just wondering how the Starling overdraft works with respect to interest. If you dip into your overdraft do you get the opportunity to pay something in to bring it back into credit before you are charged interest? E.g. until midnight on the day you go overdrawn?

Thanks :slight_smile:

Yes that is how it works they calculate the cleared balance at the end of the day

Also remember that money in any goals you might have is taken into consideration as to whether you’re charged overdraft interest. For example, you have £300 saved in a goal, but your main balance goes overdrawn by £299, in this case you will NOT be charged any interest at all.


Thanks for the replies - it was as I thought.

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Really like this… I don’t know why Monzo charges interest if you have money in pots

It’s because they’re desperate to develop income streams:

They arrogantly thought they were the best. Turned out they’re not as good as they thought they were.

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Personal overdrafts pretty awesome. Although recently they changed it like all the other banks to the 39% per year interest. Before that it was a good deal.

Anyway. I’ve always had more money in my Goals area than the size of the £750 overdraft and so never been charged a single cent for using my overdraft which is a killer feature IMO.

However their business overdrafts have been put on hold while they give out Covid Gov loans.

I gave up waiting and have recently pretty much moved most of my savings and monthly subscriptions into Revolut since their Premium tier gives FSCS protection on Savinf Vaults and they have also finally just applied for their UK banking license.

Revolut Pockets were the feature that swung it for me. Big fan of envelope budgeting, so it was always going to be whichever Fintech Bank brought this feature out first.

Starling win when it comes to cheque deposits, cash deposits. ATM withdrawals and unlimited ATM withdrawals too abroad even.

So for now I’ll be using both.

Anyway. Given more info than needed there

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Is it true that you can turn your Overdraft into a loan. I’m confused about it

The overdraft rate is variable - I’ve been offered 25%.

I think you are right. However since my credit score went to 999 in the autumn they haven’t reduced mine back down. May take some time though unless it only can go higher and now lower (the interest)

Yes whatever your given amount of credit is you can use it as an overdraft or a loan or both (half and half etc)

That’s not good. That involves giving out in manageable overdraft amounts and what if you wanted to take out a big loan (£5000). I’ve never seen a bank offer that much overdraft. I could be wrong

Still have £5000 with Nationwide. Was the best option for me… when they charged £0.50 a day for overdraft… £5000 for £15 a month…

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Starling decide the maximum amount based on your credit score. So for example for me that is £750, even though my credit score is 999. I can also decide how much of that £750 I can make active, if I want I can make only £200 available as an overdraft, you just slide a bar and decide how much you will allow yourself to have. I have a £2.5k overdraft on TSB so they don’t seem as generous as my legacy bank, more cautious.

So as an example I could take a £750 loan and have no overdraft. Or £300 overdraft and £450 loan.

I am not sure if Starling is aimed at big loans, but maybe I am wrong. There loan rates are better than the overdraft rates for me, that’s for sure, and you can just repay early with no charges.

I had the same issue - contacted them and asked them to review the overdraft rate - they reduced it to 15%

The 999 credit score is from Experian, not Starling. When Starling say “credit score” they are referring to their own scoring system.

I’ve also got a “score” of 999 from Experian but Starling are offering me a £2500 overdraft.

I don’t pay much attention to these random credit scores from the CRAs - what’s more important is not missing payments and keeping the number of credit applications down.

Also, just a heads up that Starling use Equifax rather than Experian, but you should be able to contact them and ask for the Lending department to review your overdraft rate.

I’ve been offered that much by Nationwide too so it might be more common that we think. The Starling overdraft is still at a much lower rate for me and it’s pretty good in that they offset the overdraft with any savings you have with them. I don’t use overdrafts though, it’s there just in case I make some stupid mistake and don’t have enough money in my account for an outgoing payment.

My Starling overdraft is £5k!

I used Nationwide overdraft when they charged 50p a day…
Normally I use overdraft just to cover Direct Debits… mortgage. As I get paid every 4 weeks…