Starling Bank now offers fixed savings rates for SMEs

Starling Bank is now offering its first savings product for businesses.

It is launching a one-year fixed saver product for its SME customers with a fixed interest rate of 2.5 per cent over one year on balances of £2,000 or more.

The new feature is built into the app, and account holders can now immediately transfer funds either in-app or online.

Funds deposited to the fixed saver product will be locked in for a year, with accrued interest paid out at the end of the 12 months.

“We launched our first savings product for personal customers just over a month ago, now it’s time to reward our business account holders with guaranteed returns, especially in this period of economic uncertainty,” Starling CEO Anne Boden said.

Starling’sfirst savings product launched in mid-December with a 3.25 per cent interest rate for one-year fixed-term deposits for consumers.

The product is similarly offered on deposits between £2,000 and £1m and the offering added Starling to the list of fintechs with a new focus on savings for 2023.

Chase, Zopa and Revolut all have personal savings accounts, with many more banks raising interest rates towards the end of last year as inflation continued to rise.