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Customers dispute Starling Bank's selection process for a fresh 4% easy access savings account offering.

Investigation uncovers reasons behind rejections of Starling Bank's easy-access savings account for certain customers

Starling Bank facing backlash as clients denied access to launching 4% easy-earn savings account
Starling Bank facing backlash as clients denied access to launching 4% easy-earn savings account

Customers dispute Starling Bank's selection process for a fresh 4% easy access savings account offering.

Fed-Up Starling Bank Customers Slam 4% Easy Access Savings Account Rejections

Starling Bank's highly-anticipated 4% easy access savings account launched in December, garnering excitement from customers seeking the finest savings deals. The account boasts monthly interest payments and a competitive return on cash. The online bank is also renowned for its superb online banking services.

The unveiling of Starling's 4% easy access savings account arrived before its announcement to abolish the 3.25% interest rate on current accounts from February 10, 2025.

Naturally, users jumped at the opportunity to earn 4%, but some were met with an automated message declining their application, with no explanation from Starling.

When a reader approached our website to investigate why she, a seemingly perfect customer with a hefty sum in her Starling account, flawless credit score, and no overdraft usage, was denied the enticing offer, we decided to delve into the matter.

Social media forums echo with frustrated customers voicing their concerns and sharing their similar experiences. So, what's the deal with Starling's 4% easy access savings offer?

Starling Rejecting Savings Applications

Zoe, a reader who wishes to remain anonymous, relayed her story to our website: “Starling emailed last year about withdrawing interest on current accounts from February 10, 2025. As the savings account was unveiled, I thought it was a great opportunity to move my money. But after applying, I got an immediate rejection, but they didn't explain why.”

A screenshot shared with our website depicted the customer receiving the curt message: "Sorry, we can't open an Easy Access Saver for you."

Zoe mentioned: "I couldn't comprehend it as I had a considerable sum in my account, excellent credit rating, and didn't use overdrafts. I was quite fond of Starling prior to this."

"After being rejected, I got anxious and verified with Experian that there was no fraud or my accounts/identity issues. Everything was clear."

"I complained to Starling, and they merely asserted that I wasn't eligible. However, they didn't clarify what the eligibility criteria were. It's baffling."

"As a result, I've withdrawn most of my money from Starling to earn interest elsewhere. My husband and son were also rejected for the Easy Saver with no explanation."

An updated message from Starling to her son indicated that the application may have been rejected due to 'constraints.'

In response to our inquiry, Starling Bank declared: “While we've approved tens of thousands of Easy Saver applications since soft-launching in November, we've also had to deny some in accordance with certain eligibility criteria. We're sorry about any inconvenience this may cause and are working diligently to open as many accounts as possible.”

Though we sought to gain insight into the specific eligibility criteria, Starling reserved the information, stating: "We're currently subject to certain constraints around opening new accounts, which means we must decline some applications. The decision to decline an Easy Saver application could very well be due to the constraints, not an individual's circumstances."

Zoe expressed: "They're removing interest from the current account, and then they don't want to offer customers the savings account. Although they have every right to do as they please, it's not fair to customers, and I plan on escalating my issue to the ombudsman."

While some users are rejected, others have successfully opened the linked savings account with ease.

There has been mixed feedback on the popular platform, Reddit.

Is Starling Being Fair?

Banks have faced criticism from the Financial Conduct Authority for not providing customers with better savings deals. Last year, when interest rates were above 5%, the regulator accused banks of short-changing customers with poor interest rates.

Despite the Bank of England making cuts to the base rate, there remain several accounts offering a decent return on easy access or fixed-rate accounts, surpassing inflation - which stood at 2.5% in December.

Therefore, Starling's 4% deal is an appealing proposition, but its eligibility criteria remains unclear.

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Starling Bank's Rapid Expansion

Starling has built a reputation on digital delivery, meaning most operations, including the opening of additional accounts within the app, are executed swiftly and smoothly.

This convenience plays a significant role in Starling's impressive growth.

However, is this rate of growth working against Starling? In 2017, Starling was fined £29 million for financial crime missteps. The Financial Conduct Authority asserted that the bank repeatedly disregarded a requirement to refrain from opening accounts for high-risk customers.

Starling expanded from 43,000 clients in 2017 to 3.6 million in 2023. During this time, its customer base was expanding, but measures to regulate financial crime were lacking.

In a statement, David Sproul, chairman of Starling Bank, said at the time: "I would like to apologize for the failings exposed by the FCA and to provide assurance that we have invested significantly to rectify the situation, including strengthening our board governance and capabilities. We want to assure our customers and employees that these are historic issues."

"We have learned the lessons of this investigation and are confident that these positive changes and the strength of our franchise position us for continued safe, sustainable growth, supported by a robust risk management and control framework."

  1. Despite the Financial Conduct Authority's criticisms of banks for offering poor interest rates in savings accounts, Starling Bank's 4% easy access savings account offer is drawing scrutiny due to its unclear eligibility criteria.
  2. With the base rate cuts, there are still several accounts offering a return that surpasses inflation, yet Starling's high-anticipated savings account has left many customers bewildered after being rejected without an explanation.
  3. Industry experts argue that Starling's rapid expansion in the banking-and-insurance sector could be impacting their capacity to ensure fair and transparent eligibility criteria for their savings products, causing frustration and confusion for their customers.

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