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Starling Bank follows Monzo with new charging structure

Starling Bank follows Monzo with new charging structure

Starling Bank has joined Monzo in leveling a range of new fees for services relating to its GBP and Euro accounts.

Earlier this week, Monzo announced plans to slap free-loading users with a three percent charge for ATM withdrawals amounting to over £250 per month and a £5 fee for replacing lost cards.

Now Starling is getting in on the act, mimicking the £5 fee for replacing lost cards and adding a monthly £2 charge for new children's cards. The Connected card for vulnerable users will also get a £2 monthly fee but this will not affect existing users. Current account users who open an additional GBP account will also incur the £2 per month charge.

Meanwhile, account holders who choose to make payments through the large value clearing system Chaps will now have to fork out £20 per payment.

The new charging structure was outlined in a letter to existing customers. "If you're not happy, we're really sorry to hear that," the letter states. "Unfortunately we can't change any of the terms, but you have the right to close your account at any time by getting in touch with us through the app."

The move comes as Britain's new wave of challenger banks bear down on unsustainable freebies in a bid to cut costs and drive towards profitability.

While Monzo is staring at a long hard road to profitability, Starling has promised to hit break even by the end of 2020.

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