- Full UK bank licence
- Free business & sole trader accounts
- Free accounting tools + MTD ready
- Euro & US dollar currency accounts
- Lending & credit available
About Starling Bank
Starling Bank Limited is a full UK bank serving personal and business customers, authorised by the Prudential Regulation Authority and regulated by both the Financial Conduct Authority and the Prudential Regulation Authority. Eligible business deposits are covered by the Financial Services Compensation Scheme, and Starling can lend, as well as hold your money. Know Your Business lists one Starling product, the Business Account. Starling also runs a separate Sole Trader Account, a Euro Business Account and a US dollar Business Account, and it sells a Bulk Payments service and a paid accounting tier alongside the free one. The group is wider than the bank. Engine by Starling sells Starling’s core banking software to other banks around the world, and Starling owns the buy to let lender Fleet Mortgages. Starling reported its fifth consecutive year of profitability in May 2026, with 6.2 million group platform accounts and £12.7 billion of customer deposits at the bank.
Starling Bank at a glance
| Provider type | Starling operates under a full bank license. Authorised by the Prudential Regulation Authority (PRA) and regulated by the Financial Conduct Authority (FCA) under. firm reference number 730166. Engine by Starling and Fleet Mortgages are separate group businesses. |
|---|---|
| Could be great for | Limited companies and LLPs registered at Companies House with UK resident directors and owners who want fast opening with a later option for an overdraft. Sole traders get dedicated accounts, and both types have no monthly fee. It suits businesses that want free Making Tax Digital filing included, and those receiving euros or US dollars regularly. |
| Currencies | Separate Euro and US dollar business accounts available once you hold a sterling account. The euro account has its own IBAN and sends to countries within the SEPA network. The US dollar account handles ACH payments. Starling sends money to 34 countries in 17 currencies, using a mix of SWIFT and local network routes. |
| Account opening (from a fully complete application) | You apply in the app. Applicants must pass anti money laundering, know your customer, fraud and credit checks, which are the identity and risk checks every regulated provider operating under a full bank license must run. Every person of significant control must be a UK resident individual, and every director with account access must be a UK resident. Starling, like other banks, must publish key service information on their website which allows you to compare it to other providers. At the time of publishing they give customers an account number and enable them to start paying into the account: • the same day, for 98% of customers; • on average, in 1 day; and • within 2 days for 99% of customers You can find this information on their website here. |
| Deposit protection | Financial Services Compensation Scheme (FSCS), protects eligible deposits up to £120,000. |
| Free account available? (free from monthly subscription fees) | Yes, both the Business Account and the Sole Trader Account have no monthly fee, and include a number of free operating costs in the sterling account, these include UK payments in and out, Direct Debits, standing orders, ATM withdrawals, cheque deposits and invoicing. |
| Sample costs (costs shown are part of a wider charging structure. Always check up to date information before proceeding) | Tariff Extract (August 2026). • Business Account: £0 a month. • Sole Trader Account: £0 a month. • Euro Business Account: £2 a month • US Dollar Account: £5 a month Bulk Payments: £7 a month, VAT exempt, covering up to 250 payments a month, with each file capped at 250 payments. Sterling payments. Faster Payments, standing orders and Direct Debits are free. CHAPS costs £20 per payment. Cash and cheques: Post Office: Deposits cost 0.7% of the amount deposited or a £3 minimum, whichever is higher. Limit capped at £5000 per day (plus annual cap). Counter withdrawals cost 50p. UK ATM withdrawals: are free up to six a day with £300 daily cap. Cheque deposits are free by freepost and via the app, with a £1,000 cap per cheque through the app. Accounting: Starling Accounting Essentials is free. Starling Accounting Plus costs £7 a month until April 2027, then £14 a month. Overdrafts: Available on Business Accounts only and can only be applied for once the account has been opened, not at the same time. The interest rate is set in your overdraft agreement rather than published. International: Outbound currency conversion costs 0.4% SWIFT priority delivery costs a flat £5.50, and local network payments start at 30p per transfer. Foreign currency arriving into your sterling account is converted at Starling’s inbound exchange rate. Starling states it uses the actual market rate it is charged for buying and selling currencies. The euro account provides free SEPA payments, SEPA Direct Debits, standing orders or receiving euros. The US dollar account provides free ACH payments, receiving dollars, debit card payments or cash withdrawals. |
Suitability
Is Starling good for business banking?
Yes, Starling placed second out of the 17 largest business current account providers* in Great Britain for overall service quality in the results published in August 2026, and second for online and mobile banking. It is a licensed bank, charging no monthly fee on its main business accounts.
Their account opening speed is one of the best for a fully regulated bank as they separate out applications for overdrafts to once the account has been opened (not available to sole traders).
*account providers operating under Electronic Money Institute (EMI) regulation were not included
What Starling does well
Service quality is independently measured and near the top. In the survey published in August 2026, run by BVA BDRC under the CMA’s Retail Banking Order, Starling ranked second overall and second for online and mobile banking among the 17 largest providers, with roughly 1,200 customers of each surveyed. It also ranked third for relationship and account management.
No monthly fee applies to either main account, with many operating costs free. Sole traders get their own dedicated account, enabling better aligned functionality.
Starling Accounting Essentials is free and covers Making Tax Digital for Income Tax submissions, real time tax calculations and estimates, a tax deadline timeline, automated bookkeeping with receipt matching, invoicing and a view of your taxable profit and the tax owed on it. The tool is HMRC recognised, which matters now Making Tax Digital for Income Tax has started.
The paid tier adds automated VAT calculations and submission to HMRC.
Currency handling is genuine rather than cosmetic.
Offers the euro account which comes with its own IBAN and free SEPA payments in and out, and the US dollar account handles ACH payments.
As a bank, you can borrow. Arranged overdrafts are available on Business Accounts, after the account has been opened which means very speedy account opening times compared to other banks.
Who Starling could suit
Starling tends to suit UK owned and UK run businesses that want an account from a bank, but without a monthly fee.
It works for businesses billing in euros or dollars often enough to want to hold the currency rather than convert on arrival. Companies with several directors are supported through multi-director access, so long as everyone with account access is UK resident.
What Starling doesn’t do
The Post Office counter is the only in person route, enabling cash deposits and withdrawals (costs and limits apply). If this is a regular part of your business transactions, you should work out how this translates to your business in terms of cost, limits and accessibility.
Cheques deposited through the app are capped per cheque, with larger ones going by freepost.
Sole traders cannot have an arranged overdraft.
Accounts do not earn interest.
Compare business accounts from Starling Bank
You can weigh up Starling against other banks and Electronic Money Institutions on our best business bank accounts comparison.
1 Products Compared
Starling Business Account
- Monthly Fee:£0
- Bank Transfers:Free
- Overdraft:No
- Account Access:App, Online, & Post Office
- Free UK everyday banking with no hidden monthly costs
- Bookkeeping with automated spending insights and free “Accounting Essentials” built-in
- Starling has no physical branches; all cash and cheque services are handled via the Post Office or in-app scanning
- Cash deposits at the Post Office incur a fee (0.7% of the amount, minimum £3)
- Free UK everyday banking with no hidden monthly costs
- Bookkeeping with automated spending insights and free “Accounting Essentials” built-in
- Starling has no physical branches; all cash and cheque services are handled via the Post Office or in-app scanning
- Cash deposits at the Post Office incur a fee (0.7% of the amount, minimum £3)
- No charges for standard electronic payments (Faster Payments), Direct Debits, or standing orders
- Free accounting software for bookkeeping, MTD for Income tax, P&L, and other financial reports
- Connects directly with accounting software like Xero, QuickBooks, and FreeAgent
- Optional add on for MTD VAT (part of Accounting Plus: £7 a month until April 2027, then £14 a month)
- Invoicing is included for free for all accounts, create, personalise, send and track invoices in the account
- Sole traders, Limited Companies, and LLPs registered at UK Companies House can apply
- All directors and Persons of Significant Control (PSC) must be UK residents
- Applicants must have a smartphone and a valid photo ID (Passport or UK Driving License)
 | The Financial Services Compensation Scheme (FSCS) protects up to £120,000 of eligible deposits per person or company, per firm, which is authorised and regulated by the Financial Conduct Authority (FCA). The limit is the total of all deposits held with one firm. For more information visit www.fscs.org.uk. |
Branch AccessCash DepositsNo Hard Credit CheckFast OpeningGlobal Currency AccountsAccounting | BRANCH ACCESS Account provider maintains a nationwide branch access for face to face customer banking and/or relationship management. CASH DEPOSITS Facilities to deposit cash in either a branch, Post Office, Paypoint or other locations into the account. Limits and charges may apply. NO HARD CREDIT CHECK A soft credit check for ID & Fraud purposes is carried out for account only applications. If you apply for a credit product such as an overdraft with the business account, a hard credit check will be initiated. FAST OPENING Accounts opening in 3 days or less in most circumstances. Excludes application timescales or applications simultaneously applying for credit facilities such as overdraft. GLOBAL CURRENCY ACCOUNTS Currency accounts with local (domestic) bank details for the EU (SEPA) and at least one international country e.g. USA (ACH) to transact as a local business. This feature can also be termed ‘local rails’. This differentiates them from providers offering local account details for the EU (SEPA) only and currency accounts or ‘pots’ that transact only via SWIFT. ACCOUNTING The provider offers accounting features either through their own platform or via integration with third-party software like Xero, QuickBooks or Sage. Please note that third-party integrations usually require a separate subscription fee. |
 | Exclusive to KnowYourBusiness. Valid only via applications linked from this website. Offer fulfilled by the account provider. |
| Important | Our comparison is ordered by the commercial arrangements with some, or all, of the providers featured. Our service is free and commercial arrangements have no effect on the products you may select. To find out more about our independence, regulatory authorisation and how we earn money, visit the ‘About’ page on our website. |
Regulation and account protection
The regulation and fund protection a business account receives depends on whether the provider operates as an Electronic Money Institution (EMI) or a Bank. Both are regulated by the Financial Conduct Authority (FCA), here is an overview of the key differences.
Electronic Money Institution (EMI)
Focused on transaction and payment management. The limited product range and online only service can translate to lower running costs, faster applications and niche, specialist features.
Protection
Safeguarding: Your money is ring-fenced in segregated accounts with tier-1 banks or backed by insurance.
Lending
No (cannot directly offer lending products, but some do via 3rd parties)
Good to know
- Some EMI’s offer products outside of their regulated status, via partnerships
- Most EMI’s only require soft searches for fraud and identity validation purposes
- Cannot legally call themselves a ‘bank’
- Cash deposits will be handled through partnerships, such as the Post Office or you will only be able to transfer funds in, from another account.
Bank
A provider regulated as a full bank will be able to offer a wide range of additional products and services. Including lending and cash deposits. Applications go through broader checks.
Protection
Financial Services Compensation Scheme (FSCS): Eligible deposits up to £120,000 per business, per banking licence
Lending
Yes (eg. loans, overdrafts, credit cards)
Good to know
- Some newer banks do not have branches but can offer faster application processes than ‘traditional’ banks.
- A business account can be a gateway to products required for business growth
Important info: Our brand overviews are our independent guides, not financial advice or recommendations. Product details are changed frequently by the provider, so always check directly before applying. Conduct your own research to ensure a product suits your specific business. We may earn commission if you open an account via our links. Compare this provider against others using our business accounts comparison.
Frequently asked questions
Is Starling a good business bank account?
Yes, Starling operates as a full bank, but has many of the benefits usually seen with the newer fintechs, such as fast opening and many built extra features for free. Starling placed second out of 17 banks offering business current accounts for overall service quality in the results published in August 2026.Eligible deposits are covered under the FSCS scheme
Can a sole trader open a Starling business account?
Yes, a dedicated Sole Trader Account is one of the business accounts on offer from Starling. You need to be 18 or over, resident in the UK, trading as a sole trader rather than in a partnership or as a company, and not already holding another Starling sole trader account for the same business. A Unique Taxpayer Reference helps if you are registered with HMRC, though Starling states it is not required to apply. The main difference from the Business Account is that arranged overdrafts are not offered to sole traders.
Can accountants and solicitors use Starling?
Not for holding client money. Starling’s eligibility criteria exclude businesses that hold client money and name accountants and solicitors specifically, and the account terms say you may not use the account to hold or carry out transactions with client money. A practice that keeps client funds separately elsewhere would need to check its position with Starling before applying.
How long does Starling take to open a business account?
Starling opens 98% of business accounts on the same day. This is once they have received all the information and paperwork that is required for complete application.
Does Starling do free accounting software?
Yes. Starling Accounting Essentials is free and covers Making Tax Digital for Income Tax submissions, real time tax calculations and estimates, a deadline timeline, automated bookkeeping with receipt matching and a view of your taxable profit. It is HMRC recognised.
The paid tier adds automated VAT calculations and submission to HMRC. Invoicing is free on every account, and Starling also connects to Xero, QuickBooks and FreeAgent if you would rather keep your existing software.
