Starling Bank has introduced new range of fees for its British pound/GBP and Euro bank account services to cut costs and continue operating.
Current account holders will now be required pay a €2 monthly fee upon opening a new GBP account.
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The new users of its Connected card will also be charged an additional €2 monthly fee. This fee, however, is not applicable to existing cardholders.
Starling Bank said it will charge a €5 fee for lost or stolen cards replacement and introduced a €2 fee for acquiring new cards for children.
Additionally, accountholders who make payments via Starling’s large-value clearing system named ‘Chaps’, will be charged an additional €20 ($23.68) for each transaction.
In response to the customer queries, Starling Bank stated: “The European Central Bank (ECB) has had an interest rate of -0.50% since September 2019. This means that when customers hold Euros with us, it costs us.
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By GlobalData“We have decided to pass on this negative interest rate, only for large deposits over €50,000 so that customers can continue to use their account for Euro transactions and benefit from our low exchange rate fees.
“By way of an example, should a customer hold €51,000 for a full year, they would be charged £5 per year.”
UK fintechs are struggling to survive as they had offered many unsustainable promotions in the past, in order to attract more customers.
They are now unable to offer competitive services to their customers, and are forced to cut costs by introducing new fees.
Recently, Monzo also introduced new fees for taking out cash and getting replacement cards for its customers, which will be effective from October end.
The fintech firm said that customers withdrawing “more than £250 cash in 30 days in the UK and European Economic Area (EEA)” will pay a 3% fee.
