Choosing the right bank is essential for business growth and day-to-day financial management. Among the options in the UK, Starling Bank vs TSB are both prominent contenders. This article seeks to compare their business banking services, outlining their pros and cons, fees, charges, unique features, and more to help business owners make an informed decision.
Starling vs TSB
| Feature | Starling Bank | TSB |
|---|---|---|
| Online Banking | 24/7 online banking via website or app | Online banking via website or app during specific hours |
| Mobile App | Mobile-first design with numerous features | Basic mobile banking features |
| Free Banking Period | Free for Sole Traders with no monthly fees | Monthly fee applies regardless of business type |
| UK-based Customer Service | 24/7 UK-based customer service | UK-based customer service with specific operating hours |
| 24/7 Customer Service | Available via phone and email | Available only for fraud-related issues |
| Business Credit Card | Not available | Available, subject to approval |
| Overdraft Facility | Available, subject to credit checks | Available, subject to credit checks |
| Integrated Accounting Software | Integrates with Xero, QuickBooks, and FreeAgent | No integrations with accounting software |
| Business Loans | Not available | Available, subject to approval |
| Business Savings Account | Available, no minimum deposit | Not available |
| Cash Deposit Facility | Deposits via Post Office branches | Deposits at TSB branches |
| Cheque Scanning via App | Available for all cheques | Not available |
| International Payments | Available, fees apply | Available, fees apply |
| Contactless Payments | Available with debit card | Available with debit and credit cards |
| Invoice Management | In-app invoice creation and management | Not available |
| Payroll Services | Not available | Available as part of additional services |
| Multi-user Access | Available, up to 20 users | Available, number of users based on business requirements |
| Instant Notifications | Available for all account activity | Not available |
| Business Marketplace | Available, with various business services | Not available |
| Tailored Business Insights | Available, based on account activity | Not available |
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 | Card One Money ✓ No Credit Checks ✓ Simple Fees ✓ Up To 3.5% Cashback Pricing Trial period Contact | |
 | ANNA Money ✓ Apply In 10 Minutes ✓ Bookkeeping & Payroll Tools ✓ User-Friendly Mobile App Pricing Trial period Contact | |
 | HSBC Business Banking ✓ Business Current Account ✓ In-Branch, Online & App Banking ✓ FSCS Protected Pricing Trial period Contact | |
 | Metro Business Banking ✓ Business Current Account ✓ High Street Presence ✓ FSCS Protected Pricing Trial period Contact | |
 | Mettle Business Banking ✓ Business Bank Account ✓ Online & App ✓ Quick & Easy Application Process Pricing Trial period Contact | |
 | Monzo Business Banking ✓ Business Current Account ✓ Dedicated mobile app experience ✓ FSCS Protected Pricing Trial period Contact | |
 | Virgin Money ✓ Business M Account ✓ In-Store, Online & App Banking ✓ Insights & Forecasting Platform Pricing Trial period Contact |
Starling Bank
Starling Bank is a UK-based digital bank focused on making banking seamless for individuals and businesses alike. It’s renowned for its mobile banking approach and impressive integrations with accounting software.
Pros and cons
Pros
- Seamless mobile banking experience.
- No monthly account fees for sole traders.
- Overdraft facility available.
- Real-time notifications for account activity.
- Integrations with popular accounting software, simplifying bookkeeping.
- Provides tailored business insights.
Cons
- Lack of physical branches may be inconvenient for some customers.
- No business credit card available.
- Absence of business loan services.
Table of fees and charges
| Fee Type | Charge |
|---|---|
| Account Maintenance | Free |
| Electronic Payments (UK) | Free |
| ATM Withdrawals (UK) | Free |
| Cash Deposits at Post Office | 0.3% of deposit value |
| International Payments | £5.50 per payment |
Unique and standout features
Starling’s unique features include seamless integration with popular accounting tools such as Xero, QuickBooks, and FreeAgent, making it ideal for businesses that require regular financial reporting.
Cutting edge payroll software
- Powerful and easy to use
- HMRC & RTI compliant
- Used by payroll pros
The CRM platform to grow your business
- Great for entrepreneurs
- Powerful data analytics
- Manage sales and data
Powerful web builder and advanced business tools
- Great for startups
- Powerful web page builder
- E-commerce available
Supercharged content planning
- Great for marketing
- Better than lists or sheets
- Manage social media
Create a new website in 10 minutes. Easy.
- Launch your website fast
- Powerful data intuitive
- No coding skills needed
It provides real-time notifications, allowing for better money management.
Its business marketplace offers a suite of applications to help businesses grow, and it offers in-depth business insights, a boon for strategic planning.
TSB
TSB is a well-established bank in the UK, offering a comprehensive suite of banking services. It blends traditional branch banking with modern digital services, meeting a wide range of customer needs.
Pros and cons
Pros
- Wide range of services including business loans and credit cards.
- Physical branches provide face-to-face banking.
- 24/7 fraud protection.
Cons
- No free banking period for businesses.
- Lack of real-time notifications.
- Limited digital services compared to digital-only banks.
Table of fees and charges
| Fee Type | Charge |
|---|---|
| Account Maintenance | £5/month |
| Electronic Payments (UK) | Free |
| ATM Withdrawals (UK) | Free |
| Cash Deposits at Branch | Free up to £1,000/month, then £0.65 per £100 |
| International Payments | £9.50 per payment |
Unique and standout features
TSB offers business loans and credit cards, which are absent in Starling’s offering.
Its payroll services and availability of physical branches for in-person assistance stand out in a digital-first banking world.
Also, it provides multi-user access, allowing different members of the business to manage finances as needed.
Conclusion – Starling vs TSB
Both Starling Bank and TSB offer valuable services to business customers.
While Starling excels in offering modern, integrated and cost-effective digital banking services, TSB provides a comprehensive range of banking services, including business loans and credit cards, and the advantage of physical branches.
Your choice will largely depend on whether your business requires face-to-face banking and specific services like loans and credit cards (TSB), or favours modern digital integrations, real-time notifications and insights (Starling).
FAQ
Yes, both Starling Bank and TSB offer overdraft facilities for business accounts.
Only TSB offers a business credit card. Starling Bank currently does not provide this service.
Yes, both banks accept cash deposits. Starling Bank accepts cash deposits at the Post Office, while TSB accepts deposits at its branches.
Only Starling Bank offers integration with popular accounting software like Xero, QuickBooks, and FreeAgent.
Yes, both Starling Bank and TSB are regulated by the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA).
Yes, both banks allow international payments, though charges may apply. Starling charges £5.50 per international payment, and TSB charges £9.50.