Gonna hold my hand up here, I used to keep far more than that in one of my current accounts because quite frankly up until the recent past, there literally was no interest worth having, being paid. Obviously we now have semi decent interest rates so the money definitely isn’t sat in a current account.
As for Starling, as I said previously, too little, too late in my opinion. I just got fed up of their stagnant app. It hasn’t moved on, I have.
You mean no interest on balances over £5000. Up to £5K is still guaranteed.
I only use Starling for my sole trader business account, so no interest there, but also no monthly fee which suits me fine (and was difficult to find such an offering from the major banks last I looked). I do like them, and their straightforward app, but the change in interest isn’t enough to tempt me to open a current account with them, as most of my £ is in savings accounts or similar, gaining 5% or more on balances over £5k.
Starling have said 94% of their customers hold £5000 or less in their account.
I wouldn’t be surprised if that’s true of most banks.
They’ll still get interest paid on the portion of their balance up to £5k (effectively capping max interest to £162.50). Capping max interest is a normal approach for high interest current accounts.
I don’t know why people are complaining about Starling doing this. Hardly any banks pay interest on their current accounts. I don’t get any with HSBC (although there are other things that keep me with them).
Savings facts from the Bank of England show that, as of August 2022, there was almost £280 billion in accounts paying no interest.
Throughout 2022, the amount of savings in non-interest accounts grew from £257 billion in January to almost £268 billion in August. Even at a rate of 1.5%, this would translate to over £4 billion of interest going into the people’s accounts.
I think it’s best just not to think about the amount people just leave in their bank account 
I assume this with regard to their Sterling rather than their Euro account ? (Which is where I have what money I have in my Starling account)
Welcome to the internet. 
There is absolutely nothing wrong with it. Nationwide are still at 1% on balances up to £1500…providing you pay in £1000 every month. The Starling offer is better than that (after the first year).
Yes, some people may prefer what Chase is offering, but I’m not all that fussed about trying them out. Starling meets my needs perfectly fine --the bills space, the virtual cards etc are a great help, but getting more interest on money in those spaces along with my main balance is great. Anything more than £5k can go into a cash ISA elsewhere or a 12 month fix space.
Depends on how you use the bank. I’m mostly paying out via DD or SO and rarely by card so Chase works great. Someone paying a lot of bills by card would likely find Starling better.
I keep a lot more than £5k in my Metrobank
Unfortunately like me