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Personal Finance · head to head

Starling Bank vs Vanguard

Starling Bank logo

Starling Bank

Personal Finance

UK-licensed digital bank with FSCS-protected deposits, built and majority-owned without a US parent

From
Free
Rated
-
Full reviewWebsite
Vanguard logo

Vanguard

Personal Finance

Investing for your future

From
On request
Rated
-
Full reviewWebsite

The short version

  • Only Starling Bank has a free tier, so it costs nothing to try first.
  • Each has a real cost: Starling Bank as a UK-only bank, customers wanting broad multi-currency holding, international transfers or in-app investing will need a separate product, since Starling's feature set stays deliberately focused on core banking.; Vanguard a 25 USD annual account service fee applies unless the account uses e-delivery, is a Cash Plus Account, is enrolled in an advisory service, or holds 1 million USD or more in qualifying assets
  • They diverge on capability: Starling Bank covers FSCS-protected deposits, Vanguard covers Low-cost index funds.
  • Prices and features above were last checked on 1 September 2026.

Where they differ

Only the attributes on which Starling Bank and Vanguard actually diverge.

Attributes where Starling Bank and Vanguard differ
AttributeStarling BankVanguard
Starting priceFreeOn request
Pricing modelFree personal current account; business accounts have free and paid tierstransaction
Free tierYesNo
PlatformsiOS, Android, WebWeb, IOS, Android
FoundedUnknown1975

Identical on both: user rating (Not yet rated), category (Personal Finance).

What each one covers

Drawn from each product's published feature list. An absence here means we hold no record of it - not that the product lacks it.

Only in Starling Bank

  • FSCS-protected deposits
  • Business banking suite
  • Fee-free foreign card spending
  • Savings Spaces
  • Joint accounts
  • Starling mortgages

Only in Vanguard

  • Low-cost index funds
  • Commission-free trading
  • Retirement accounts
  • Financial advisors
  • Bank accounts
  • Investment accounts
  • Web support
  • IOS support

What people use each for

The jobs each tool is most often brought in to do.

Starling Bank

  • A UK resident wanting a free, fully licensed current account with FSCS deposit protectionnot Vanguard
  • A sole trader or small business wanting a business account with built-in invoicing rather than a separate accounting subscriptionnot Vanguard
  • A frequent traveller wanting fee-free card spending abroad on a UK-regulated accountnot Vanguard
  • A saver wanting goal-based Spaces sub-accounts without opening a separate savings productnot Vanguard

Vanguard

  • Holding low cost index mutual funds and ETFs for long term investingnot Starling Bank
  • Running IRAs and taxable brokerage accountsnot Starling Bank
  • Employer retirement plan participationnot Starling Bank

Where each one falls short

Documented limitations, not opinions. Every one is a constraint you would hit in normal use.

Starling Bank

  • As a UK-only bank, customers wanting broad multi-currency holding, international transfers or in-app investing will need a separate product, since Starling's feature set stays deliberately focused on core banking.
  • Business account paid tiers add a monthly fee for features that some competitors bundle for free, so cost comparison against other business banking options should account for the tier actually needed, not the free entry point.
  • Like other app-first banks, Starling has very limited physical presence, which is a real limitation for customers needing to deposit cash or prefer in-person service.
  • Mortgage lending is limited to buy-to-let through a subsidiary rather than a full residential mortgage range, so it is not a one-stop option for a typical homebuyer.
  • Interest rates on savings Spaces and any lending products are set individually and can change, so the specific rate should be checked at the time of opening rather than assumed from marketing.

Vanguard

  • A 25 USD annual account service fee applies unless the account uses e-delivery, is a Cash Plus Account, is enrolled in an advisory service, or holds 1 million USD or more in qualifying assets
  • Broker assisted trades cost 25 USD each, waived only at 1 million USD in qualifying assets or with an advisory service
  • Options trades carry a 1 USD per contract fee on top of zero commission
  • Transaction fee mutual funds cost 20 USD per online trade below 1 million USD in qualifying assets, falling to 8 USD only at higher tiers
  • Outgoing wire transfers cost 10 USD unless the account is a retirement account or holds 1 million USD or more
  • Commission levels are tied to a Qualifying Assets balance, so the cheapest rates require 1 million USD or more

Pricing, plan by plan

Starling Bank

Free
  • Personal current accountFree
    • Free current account with FSCS-protected deposits
    • Fee-free foreign currency card spending
    • No monthly account fee
  • Business Toolkit$7/month
    • Integrated invoicing and expense categorisation
    • Multiple sub-accounts (Spaces) for tax and VAT setting-aside
    • Accounting software integrations

Vanguard

On request
  • Self-Directed Investor$undefined/month
    • Low-cost index funds
    • Commission-free trading
  • Advisory Services$undefined/month
    • All Self-Directed features
    • Financial advisors

Which should you pick?

Choose Starling Bank if

  • You need fscs-protected deposits.
  • You want to start without paying.
  • You work on iOS, Android, Web.
  • You also want business banking suite.
Starling Bank review

Choose Vanguard if

  • You need low-cost index funds.
  • You work on Web, IOS, Android.
  • You also want commission-free trading.
Vanguard review

Questions people ask

Is Starling Bank or Vanguard better?
Neither clearly leads. Starling Bank starts at Free and Vanguard at On request, and user ratings are close enough to be indistinguishable. Choose on capability and platform support.
Which is cheaper, Starling Bank or Vanguard?
Starling Bank has a free tier; the other does not. Paid plans start at Free for Starling Bank and On request for Vanguard.
Does Starling Bank or Vanguard run on more platforms?
Starling Bank runs on iOS, Android, Web. Vanguard runs on Web, IOS, Android.
Can I use Starling Bank for free?
Yes. Starling Bank has a free tier, so you can try it without paying. Vanguard starts at On request.
What is Starling Bank best used for?
Starling Bank is most often used for a uk resident wanting a free, fully licensed current account with fscs deposit protection, a sole trader or small business wanting a business account with built-in invoicing rather than a separate accounting subscription, a frequent traveller wanting fee-free card spending abroad on a uk-regulated account, a saver wanting goal-based spaces sub-accounts without opening a separate savings product. Of those, a uk resident wanting a free, fully licensed current account with fscs deposit protection and a sole trader or small business wanting a business account with built-in invoicing rather than a separate accounting subscription are not what Vanguard is typically brought in for.
What can Starling Bank do that Vanguard cannot?
Starling Bank covers FSCS-protected deposits, Business banking suite, Fee-free foreign card spending, Savings Spaces. Vanguard covers Low-cost index funds, Commission-free trading, Retirement accounts, Financial advisors.

Answered from the vendors’ own pages

Starling Bank: Is Starling Bank a real bank?

Yes, Starling Bank Limited holds a full UK banking licence and is regulated by the FCA and PRA, the same framework as traditional UK banks.

Vanguard: How much are Vanguard's expense ratios?

Vanguard's average ETF and mutual fund expense ratio is 0.07%, compared to the industry average of 0.44%, representing significantly lower fees.

Source
Starling Bank: Are deposits protected if Starling fails?

Eligible deposits are covered by the Financial Services Compensation Scheme up to 85,000 pounds per eligible person, the same statutory protection as other UK banks.

Vanguard: Does Vanguard offer advisory services?

Yes. Vanguard Advisers, Inc. provides retail direct investment advisory strategies, though specific advisory costs are not disclosed on the public pages and require direct inquiry.

Source
Starling Bank: Is Starling good for a small business?

It has a well regarded business banking product with integrated invoicing and accounting software links, commonly used by UK sole traders and small companies.

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