Revolut Vs Starling Bank (2024)

With app-based accounts offering budgeting tools and no fees on overseas spending, financial providers Revolut and Starling are giving the high street banks a run for their money. But what does each service offer and what are the fees and charges? We’ve compared these two ‘challenger banks’ to see how they stack up.

Revolut vs Starling Bank: at a glance

Revolut and Starling are both app-based financial providers with no branches or high street presence, so they tend to suit consumers who like doing all their banking and financial admin from their mobile.

As of 25 July, 2024, Revolut was granted a UK banking licence. It is currently in a ‘mobilisation’ period, which is a standard process completed by other digital banks including Monzo and Starling.

During this process, which can take up to one year, Revolut can only hold up to £50,000 of customer deposits in total. This means that for the time being it is still operating as an e-money institution and customers’ money is not automatically protected by the Financial Services Compensation Scheme.

Instead, Revolut safeguards customers’ cash by ring-fencing it away from its everyday business transactions.

Both Revolut and Starling offer personal accounts, joint accounts, business accounts and accounts suitable for teenagers and younger children.

How do Revolut and Starling’s banking services compare?

Revolut offers banking customers a range of account options from its Standard account which has no monthly fee, to premium accounts (Plus, Premium, Metal and Ultra) which do carry a monthly fee.

You can have your salary paid in and make bank transfers or card payments into the account and you get a free debit card with this to make payments and withdraw cash from cash machines, subject to maximum fee-free limits.

Payments made from a Revolut account to other bank accounts in the UK are free of charge. There is no overdraft available on any Revolut account and no interest paid on in-credit balances (however, there is a linked instant access savings account available).

Revolut offers budgeting tools including its saving ‘vaults’, which can be used to ring-fence money for different purposes. There are no fees for debit card use and ATM withdrawals abroad and account holders have the ability to send money overseas at preferential rates, subject to certain terms and conditions.

There are also discounts and rewards on offer, including cashback on spending with a range of brands when using the debit card. Revolut’s premium, fee-paying accounts offer extra travel benefits, such as winter sports and baggage insurance and discounted airport lounge access.

Starling’s current account, which is online or app-based, comes with no monthly fee and pays 3.25% interest on credit balances, including cash set aside in its saving ‘spaces’, up to £5,000. Eligible customers can arrange an overdraft of up to £5,000, subject to circ*mstances and credit score. Day to day banking is free.

Customers can withdraw up to £300 a day from cash machines with no charge and cash can be deposited in Post Offices – up to a maximum limit of £1,000 per calendar year. Cheques can be scanned to pay in remotely.

There are no fees to use the Starling debit card overseas and there are low fees to send money from your account to a recipient abroad.

Starling also offers budgeting tools, such as virtual jars to segregate money for different types of spending, plus there is a fixed rate savings account available.

Interest rates, fees and charges

Revolut has five personal accounts: the Standard account has no monthly fee, the Plus account charges £3.99 a month, Premium is £7.99 a month, Metal is £14.99 a month and Ultra is £45 a month. Benefits, cashback and perks increase with each level of account.

There is no charge to add money to an account via a UK bank or card transfer. Debit card payments are free.

Cash withdrawals from Revolut’s Standard account are subject to a maximum limit of £200 or five withdrawals per month, whichever comes first. There is a 2% fee thereafter.

Accounts with a monthly subscription fee, such as Plus, Premium, Metal and Ultra, work in the same way for cash withdrawals with a maximum monthly withdrawal limit of £200, £400, £800 or £2,000 respectively.

Standard and Plus account-holders can exchange up to £1,000 of currency per month without incurring fees (Monday to Friday is fee free, weekend exchange fees apply)

Starling Bank has no fees for day-to-day banking and its ATM limits are more generous than Revolut at up to £300 per day fee-free.

Its arranged overdraft has a representative APR of 15%, although some customers will pay more (up to 35%) depending on their personal circ*mstances and credit history.

As well as paying 3.25% on its current account (on balances up to £5,000), Starling offers a one-year fixed rate savings bond paying 4.48% gross. Savers can deposit between £2,000 and £1 million to take advantage of the rate.

Revolut vs Starling Bank: account offerings at a glance

What do the reviewers say?

When it comes to customer reviews both Starling Bank and Revolut score well. Both have a rating of 4.3 out of 5 on Trustpilot with thousands of reviews praising the ease of opening and using accounts with both providers. Many consumers value the extra benefits, such as the budgeting tools and fee-free overseas use.

Fairer Finance, which compiles independent ratings of financial providers records Starling Bank as having 75% for its customer experience rating for its bank account.

Revolut is just slightly behind with a score of 65%.

Both providers are ahead on ranking than high street banks including Santander, NatWest, Barclays. TSB and HSBC.

Who does Starling bank suit?

Starling Bank could suit those looking for an easy to use app-based account with no fees for overseas use and competitive rates on foreign currency exchange. The budgeting tools are likely to appeal to those who like to do their financial admin on their smartphone.

Among the pros and cons of Starling Bank, it has a high customer service score and rating, suggesting customers are happy with the service, it offers an overdraft for banking customers and deposits are protected by the FSCS.

However, it doesn’t have branches, so won’t suit those who want to do any banking at all in person. There are also limits on cash deposits into the bank account and a daily cash withdrawal limit of £300.

Who does Revolut suit?

Revolut is an account often chosen by frequent travellers and those who know they’ll need to regularly be changing money into different currencies.

As well as fee-free currency exchange (on weekdays), some of Revolut’s premium accounts offer other travel perks, such as baggage insurance, personal liability and winter sports cover, for example.

Among the pros and cons, Revolut scores well in customer reviews and offers a broad range of currencies for its exchange service. But the fee-free Standard account applies limits on cash withdrawals and account holders deposits are not protected by the FSCS.

To open an account with Revolut, you’ll need to be at least 18 years old.

Revolut vs Starling Bank – which is best for you?

The account that suits you better will depend on your needs and how you plan to use it. Both accounts offer a debit card which has no fees for overseas use which could be attractive to frequent travellers.

Although both banks are licenced in the UK, Starling offers a slightly broader banking service, such as an arranged overdraft and fewer limitations on cash deposits and withdrawals. So if you’re looking for a banking alternative to the big high street banks, this provider could be worth a look.

In contrast Revolut is perhaps better known for its additional services, such as foreign exchange, access to a range of investments (including commodities and cryptocurrencies) and its budgeting tools.