Starling vs TSB for business banking

Updated on 7 August 2023

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.

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Starling vs TSB

FeatureStarling BankTSB
Online Banking24/7 online banking via website or appOnline banking via website or app during specific hours
Mobile AppMobile-first design with numerous featuresBasic mobile banking features
Free Banking PeriodFree for Sole Traders with no monthly feesMonthly fee applies regardless of business type
UK-based Customer Service24/7 UK-based customer serviceUK-based customer service with specific operating hours
24/7 Customer ServiceAvailable via phone and emailAvailable only for fraud-related issues
Business Credit CardNot availableAvailable, subject to approval
Overdraft FacilityAvailable, subject to credit checksAvailable, subject to credit checks
Integrated Accounting SoftwareIntegrates with Xero, QuickBooks, and FreeAgentNo integrations with accounting software
Business LoansNot availableAvailable, subject to approval
Business Savings AccountAvailable, no minimum depositNot available
Cash Deposit FacilityDeposits via Post Office branchesDeposits at TSB branches
Cheque Scanning via AppAvailable for all chequesNot available
International PaymentsAvailable, fees applyAvailable, fees apply
Contactless PaymentsAvailable with debit cardAvailable with debit and credit cards
Invoice ManagementIn-app invoice creation and managementNot available
Payroll ServicesNot availableAvailable as part of additional services
Multi-user AccessAvailable, up to 20 usersAvailable, number of users based on business requirements
Instant NotificationsAvailable for all account activityNot available
Business MarketplaceAvailable, with various business servicesNot available
Tailored Business InsightsAvailable, based on account activityNot available
Starling vs TSB

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Tide Business Bank Accounts
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ANNA Money
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✓ Bookkeeping & Payroll Tools
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HSBC Business Banking
✓ Business Current Account
✓ In-Branch, Online & App Banking
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✓ Business Current Account
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Mettle Business Banking
✓ Business Bank Account
✓ Online & App
✓ Quick & Easy Application Process
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Monzo Business Banking
✓ Business Current Account
✓ Dedicated mobile app experience
✓ FSCS Protected
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Virgin Money
✓ Business M Account
✓ In-Store, Online & App Banking
✓ Insights & Forecasting Platform
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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 TypeCharge
Account MaintenanceFree
Electronic Payments (UK)Free
ATM Withdrawals (UK)Free
Cash Deposits at Post Office0.3% of deposit value
International Payments£5.50 per payment
Starling Bank fees and charges

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.

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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 TypeCharge
Account Maintenance£5/month
Electronic Payments (UK)Free
ATM Withdrawals (UK)Free
Cash Deposits at BranchFree up to £1,000/month, then £0.65 per £100
International Payments£9.50 per payment
TSB fees and charges

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

Do both banks offer overdraft facilities?

Yes, both Starling Bank and TSB offer overdraft facilities for business accounts.

Which bank offers a business credit card?

Only TSB offers a business credit card. Starling Bank currently does not provide this service.

Can I deposit cash in both banks?

Yes, both banks accept cash deposits. Starling Bank accepts cash deposits at the Post Office, while TSB accepts deposits at its branches.

Do these banks integrate with accounting software?

Only Starling Bank offers integration with popular accounting software like Xero, QuickBooks, and FreeAgent.

Are both banks regulated?

Yes, both Starling Bank and TSB are regulated by the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA).

Do the banks offer international payments?

Yes, both banks allow international payments, though charges may apply. Starling charges £5.50 per international payment, and TSB charges £9.50.

Reviewed by , Managing Director

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