Starling Supercharges Savings Offering With New Cash ISA and Revamped Easy Saver

WHY THIS MATTERS: The introduction of Starling Bank’s new Cash ISA is a major declaration of intent that the UK’s leading digital banking providers are aggressively evolving beyond transactional accounts and into comprehensive wealth and personal finance management. This product launch is strategically vital, not just for the competitive rate (2.5% AER) paired with high liquidity, but for its seamless integration into the bank’s “Spaces” feature. This move capitalizes on the prevailing consumer trend of ‘mental accounting,’ allowing users to effortlessly segment their tax-efficient savings for different life goals—a key differentiator in the crowded market. By tying this high-value, tax-advantaged product exclusively to its current account holders, Starling is effectively solidifying its position as the primary financial relationship for its customers, making deposits stickier and deepening its data intelligence advantage over legacy rivals. For the industry, this signals the accelerating convergence of savings, investments, and daily spending within single app environments.

Starling Bank has launched its Cash ISA, allowing customers to take advantage of their £20,000 tax-free savings allowance. It bolsters the bank’s existing savings offering, which includes its Fixed Saver and Easy Saver products. 

Starling’s Cash ISA is available for Starling’s personal current account customers and offers unlimited, penalty-free, immediate withdrawals within each tax year, with an interest rate of 2.5% AER.

The new account is open to eligible Starling personal current account holders and will be rolled out from today. Cash ISA customers will earn daily interest, paid monthly, on their balance and can make immediate, fee-free unlimited deposits and withdrawals to and from a Starling personal current account. Customers can also transfer directly into Starling’s Cash ISA from another Cash ISA product elsewhere.

Customers will be able to apply for Cash ISA in a matter of minutes through the Starling app. It will sit under the Spaces section of their current account, which houses Starling’s regular Spaces, used for day to day budgeting, and saving Spaces, which includes Easy Saver (2.5% AER) and Fixed Saver (3.3% AER/gross). 

The digital bank has also launched Spaces within Easy Saver, in response to customer demand, which allows customers to open multiple Easy Saver Spaces. The launch enables customers to compartmentalise their savings, whether it’s for holidays, weddings or property deposits, and earn interest across each Space.

Raghu Narula, Chief Banking Officer at Starling Bank said: “We’ve supercharged our savings offering to help our customers be good with money. We now have a trio of savings products, tailored to different needs, allowing our customers to maximise their tax-free allowance, save for long term goals and earn interest on their day to day savings.” 

FF NEWS TAKE: This launch is significant as it completes Starling’s core trinity of retail savings products, making it a formidable player in the high-street competition for deposits. The ability to create multiple, purpose-driven saving “Spaces” within the Easy Saver product is a clever use of technology to meet direct customer demand for saving compartmentalization. The immediate point of focus should be whether this 2.5% AER rate can be sustained as interest rate pressures fluctuate. Longer-term, we anticipate a subsequent launch into the Stocks & Shares ISA market to provide a truly full-spectrum tax-free offering.