Starling Bank preparing to launch "Kite" kid’s card and negative interest rate for Euro accounts

By Oliver Smith on Monday 7 September 2020

Digital Banking

Minus 0.5 per cent for account holders with more than €50,000 in their accounts.

Starling Bank preparing to launch
Image source: Starling Bank.

Starling Bank is nearing the launch of a dedicated children’s debit card, called Starling Kite, which is likely to take on the likes of GoHenry and Osper.

The bank is also preparing to introduce negative interest rates of 0.5 per cent for its Euro account holders who have more than €50,000 in their accounts.

Negative rates will begin from 4 November, but will only be charged on the Euro amount above €50,000—meaning a customer with a €51,000 balance will pay Starling 0.5 per cent interest on €1,000 of their account in order to store the funds with Starling Bank.

A number of other changes were revealed over the weekend in an email to customers detailing Starling’s newly updated terms and conditions.

For its kid’s card Kite, Starling will be charging £2 per month for the debit card which will be attached to a dedicated Space within the parent’s Starling account.

The card will be aimed at children 15 and under, who don’t yet qualify for Starling’s Teen account.

Starling also revealed that it will be launching a new Connected Card, the spare debit card to support those self-isolating, with extra features that will also be charged at £2 per card per month.

Customers will also soon be able to open multiple GBP Personal and Joint Accounts, although each additional account will also be charged at £2 per account per month.

Replacement cards for Starling’s standard Personal and Joint Accounts will also soon be charged at £5 per replacement, with one free replacement a year.

Finally, for larger same-day CHAPS payments Starling will be charging £20 per payment.

All the new fees come into effect from 4 November, however it’s unclear whether Kite and Starling’s new Connected card will launch on this date or later in the year.

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