This is our review of Starling Bank and their 0% FX fees debit card.
The Starling Bank website is here. To open an account, visit the site and input your mobile number. You will be sent a link to download the app.
Why should I get a Starling Bank 0% foreign exchange fee card for travelling?
If you use a rewards credit card when travelling, you will incur a fee of 3% on everything you buy. This can never be justified by the miles and points earned on the transaction. It may be justified if you need to hit a spending target to trigger a sign-up bonus or a voucher such as the British Airways American Express 2-4-1.
We have looked at a few no and low FX fee travel payment cards in the past. Here is our last review of Revolut for example (remember that our exclusive Revolut offer means you don’t pay the £4.99 postage fee for a plastic card).
All of these products have different features – there is no ‘right’ answer for you. Some are more fiddly than others, some are prepaid cards and some are credit cards, some have added benefits such as 0% interest on purchases.
If you DO want to earn miles and points from your foreign spending, the best option is Curve Card. Curve is free and has a 0% foreign exchange fee Monday to Friday (0.5% at weekends). It recharges your purchase to any other Visa or Mastercard you own in Sterling. This means you earn miles and points on the underlying card without paying the usual 2.99% foreign transaction fee. Curve Card will pay you £5 for trying it out – read our review of Curve Card here.
What is Starling Bank?
Starling Bank is effectively where Revolut wants to be, but isn’t quite. It is a full ‘online bank on a debit card’ and unlike Revolut has full UK FSCS compensation up to £85,000 if the company goes bust.
Starling won ‘Best British Bank’ in the 2020 British Bank Awards. It won in 2018 and 2019 too!
Some of the services offered by Starling Bank will be familiar to Revolut or Monzo users:
0% foreign exchange fees when you use your Starling Bank debit card outside the UK
no cash withdrawal fees from Starling when you use your card at an ATM abroad
you can send money via their app in 19 currencies to bank accounts in 38 different countries
the card and account are free
There are also some interesting additional features:
Starling Bank pays you a small amount of interest on the credit balance on your account (0.05% on balances up to £85,000)
It has high ATM withdrawal limits (Revolut has a £200 per month cap on the free card, Starling has a £300 per day limit I believe)
You can apply for an overdraft (interest applies) which will allow to spend even when the money pre-loaded onto your card runs out
You can pay in money at any Post Office (obviously you can transfer money electronically into your Starling account too)
Other features include the ability to lock the card from within the Starling app if it is lost or stolen.
Starling Bank is a fully licensed bank. You can, if you wish, pay your salary onto your debit card or ask friends and family to send money to your card using the standard sort code and account number format.
You can also set up direct debits and standing orders to be paid from your Starling balance, because this is a ‘proper’ online-only current account.
There is one other additional feature of using Starling Bank as opposed to taking cash withdrawals abroad from a credit card. ATM withdrawals via a credit card can show on your credit file and some potential lenders may take a negative view of this (they may think you are desperate for cash). As Starling is taking money from your own credit balance, it will not show on your credit file. Revolut will also not leave a trace on your credit file but they limit ATM withdrawals to £200 per month.
This is only a brief overview of what Starling Bank has to offer. I have no experience of it myself but a lot of HfP readers have been very positive about it.
It is important to note that this is a ‘proper’ current account. You can, of course, download the Starling Bank app, open an account to get the debit card and use it purely for travel purposes, but you will end up with a 2nd current account in your name.
There is no obligation to pay your salary into Starling however. You can fund your account via the app using a debit card from your main bank.
As this is a travel site, I don’t want to go into the specifics of how Starling Bank works as a current account provider. What we can say is that – with 0% fees on foreign spending and cash withdrawals – it ticks the two main boxes you want in a card to use abroad.
Want to earn more points from credit cards? – January 2022 update
If you are looking to apply for a new credit or charge card, here are our January 2022 recommendations based on the current sign-up bonus.
You can see our full directory of all UK cards which earn airline or hotel points here. Here are the top current deals.
There are special sign-up bonuses on both of the BA American Express cards until 28th February 2022. The bonus on the free card is doubled to 10,000 Avios and the bonus on the Premium Plus card is increased from 25,000 Avios to a huge 40,000 Avios.
British Airways American Express
10,000 Avios for signing up (SPECIAL OFFER) and an Economy 2-4-1 voucher for spending ….. Read our full review
British Airways American Express Premium Plus
40,000 Avios (SPECIAL OFFER) and the UK’s most valuable card perk – the 2-4-1 voucher Read our full review
American Express Preferred Rewards Gold
Your best beginner’s card – 20,000 points, FREE for a year & two airport lounge passes Read our full review
The Platinum Card from American Express
30,000 points and an unbeatable set of travel benefits – for a fee Read our full review
Earning miles and points from small business cards
If you are a sole trader or run a small company, you may also want to check out these offers.
The bonus on the Capital On Tap card is increased from points worth 10,000 Avios to 30,000 Avios until 4th February 2022.
The bonus on the British Airways Accelerating Business card is increased from 30,000 Avios to 45,000 Avios until 28th February 2022.
American Express Business Gold
20,000 points sign-up bonus and free for a year Read our full review
American Express Business Platinum
40,000 points sign-up bonus and a long list of travel benefits Read our full review
British Airways Accelerating Business American Express
45,000 Avios sign-up bonus – plus annual bonuses of up to 30,000 Avios Read our full review
Capital On Tap Business Rewards Visa
30,000 points bonus – the most generous Avios Visa for a limited company Read our full review
For a non-American Express option, we also recommend the Barclaycard Select Cashback card for sole traders and small businesses. It is FREE and you receive 1% cashback on your spending.
Apply 31st March 2022 and your cashback will be increased to 2% for the first three months.