Incard vs Starling: which UK business account suits you?

At a glance

The biggest difference: bank vs e-money

Starling is a bank. Its sole trader page says eligible deposits are protected up to £120,000 by the FSCS. That limit is per eligible depositor, per bank. Starling doesn't pay interest on the business account balance.

Incard is not a bank. As an e-money institution it safeguards your money in segregated accounts and doesn't lend it out, but funds are not protected by the FSCS. If an e-money firm fails, safeguarded money is returned through an insolvency process, which can take time. See our e-money vs bank account guide.

Everyday fees

Starling's fee schedule says it doesn't charge for opening or operating the account, for Faster Payments, standing orders or Direct Debits, or for using the card in the UK. The main charges are £20 per CHAPS payment, 0.7% (minimum £3) on Post Office cash deposits, £7 a month for Bulk Payments and £5 for a replacement card.

Incard's Free plan is also £0 a month, with 100 local transfers included and £0.30 each after that. ATM withdrawals cost 2% in the UK and 2.5% abroad. Extra users and extra IBANs are £12 a month each. The Incard profile lists the rest.

Cashback is Incard's main advantage

Starling's fee schedule doesn't list card cashback, so we haven't assumed any. Incard pays cashback on eligible card purchases at merchants on its eligible brand list, at the rates in the table above. A sense-check (simple arithmetic, not a forecast):

• £8,000 a month on ads and software on Incard Free: about £80 a month.
• £1,000 a month of mixed spending: £5 to £10 a month.

If your figure is closer to the second line, Starling's free banking, free card use abroad and FSCS cover are probably worth more to you. Try the cashback calculator with your own numbers.

Foreign currency

Starling uses its outbound exchange rate, which it says doesn't include a margin when markets are open, and adds a 0.4% conversion fee for international payments and for moving money into your euro or US dollar account. Card payments and cash withdrawals abroad have no Starling fee and use the Mastercard rate.

Incard gives you £5,000 a month (Free) or £15,000 (Grow) of exchange at the interbank rate, then charges 0.6%, or 1% outside market hours. Card payments in a foreign currency cost 1.8% on Free and 1.5% on paid plans. For card spending abroad Starling is cheaper. For account conversions inside Incard's allowance, Incard is cheaper; above it, Starling's 0.4% is lower than 0.6%.

Who can open each account

Starling reviews each business case by case. Generally, limited companies and LLPs must be registered at Companies House, every person of significant control must be a UK-resident individual (no corporate shareholders), and directors with access must live in the UK. Sole traders must not be in a partnership. General partnerships and charities that aren't limited companies aren't supported.

Incard accepts UK limited companies, LLPs and registered sole traders, and Swiss GmbH, AG and sole traders. EEA onboarding is paused until an expected restart in 2027. It restricts many industries and doesn't accept charities, trusts or cooperatives. Our Incard profile sets out the full rules.

Our verdict

Incard is the better fit if your business puts serious money through cards on advertising, software or travel, because Starling doesn't pay cashback: £8,000 a month of that spend earns about £80 a month on Incard Free. Keeping a Starling account for reserves and cash, and an Incard card for spending, is a reasonable setup.

Starling is the better everyday account if card spending is a small part of your costs: no monthly fee, free UK payments, no fees on card use abroad, cash deposits and FSCS cover.