We wrote to customers with an existing overdraft back in January, letting them know that they would be moving to risk based pricing on 1st April. To help customers struggling with the impacts of coronavirus, we delayed this move to risk based pricing by 90 days until 1st July 2020. From 1st July your interest rate will be 15%, 25% or 35% EAR (variable).
If you accepted your overdraft with us after 1st April 2020, you will already be on our risk based pricing schemes. This means your interest rate will be 15%, 25% or 35% (variable).
We consider a range of factors when we calculate what overdraft rate to offer you, including information from multiple credit reference agencies. We won’t charge any fees for unarranged overdraft borrowing. You can read more about our overdraft pricing structure in our blog, here. If you think there may be something wrong with your interest rate or credit rating, you can contact us and appeal your interest rate.
Interest is accrued daily, charged monthly and it’s all updated in your app.
*Equivalent Annual Rate (EAR): the rate of interest you would pay over a year if you were to remain overdrawn. An EAR is a common way of showing interest rates on overdrafts which you can use to compare different banks’ interest rates. An EAR doesn’t include the fees that some banks may charge you in addition to interest. At Starling, we don’t charge any additional fees.