Congrats on the full commitment to the cause!
So the Business users are subsiding the cost of the Post Office service. Makes sense because itās always been the case for legacy banks IIRC. As they say, I think itās also cheaper than some others, but Iām sure people actually with Business accounts at the moment will know more as I havenāt had a business account for a few years. Also makes sense as to why Monzo is charging because they havenāt got Business customers to subsidise this with.
Havenāt had chance to try it out as I donāt pay cash in all to often but glad theyāve gone with the more expense real-time paying in as some have witnessed above!
I payed in some cash into my Santander account at the Post Office the other day and unsure of the process, I asked the bloke behind the counter if I could pay in with the card. He got a bit arsey with me for a second and said āYeah, you can, but it costs US money!ā. He was fine with it after that to be fair as I think he realised he was being a bit rude.
I thought the only way to pay in Cash with Santander was using my Debit Card. I know they canāt do Cheques, they literally just give you an envelope and they post it (which you have to pay for), so you need a Paying In slip to do it.
Why would you say business users are subsidising this?
Surely if its a per transaction fee like Paypoint then this wouldnāt be true?
Sounds to me like theyāre just trying to match the market norm (charge for business account cash deposits, donāt for normal current account cash deposits)
Because itās Ā£3 per transaction for business customers and Ā£3 + 3% on deposits over Ā£1,000, so if itās per transaction why add the 3%?
Was it not 0.3% over Ā£1000 (I maybe wrong)
According to their official blog post it is 0.3%, yes
Strangely, the top FAQ in the Starling app is Can I deposit cash?, but the text hasnāt been updated with the new PO arrangements. I would have thought this would be pushed out at the same time as the blog post.
Itās 0.3% per transaction with a minimum fee of Ā£3.
Same as the interchange fee cap for credit cards! Wonder if thatās relevant
For business account cash deposits up to Ā£1,000, thereās a Ā£3 charge and for anything over Ā£1,000, thereās a 0.3% charge on the deposit value.
Which is exactly what I said above: itās 0.3% per transaction with a minimum fee of Ā£3.
Up to and including Ā£1,000 - Ā£3 fee
Above Ā£1,000 - 0.3%
So Ā£1,500 would attract a fee of Ā£4.50. It isnāt Ā£3 plus 0.3% of the total deposit.
Ah, I wasnāt thinking about Ā£1,000 at 3% would be Ā£3!
Probably why I donāt run my own business.
Either way though, my comments about the Business Pay-in probably subsidising the personal Deposits still makes sense I think.
Yeah, you could be right, sustaining rather than subsidising but either way itās definitely a good excellent proposition from Starling. The process looks smooth and the in-app bits look well thought out.
With it explicitly saying Post Office Banking Services and having the logo, I wonder if thereās the possibility of other methods of paying-in coming up. Did the NatWest paying in have something similar? I wonder if theyāll ditch the agreement with NatWest now that this is in place?
I think theyāve probably learned their lesson with regards to teasing things maybe a little prematurely, especially when it involves third parties! It would be nice to see a little bit of inbetween going forward, like a sneak peak a few weeks before they know theyāre going to launch but I guess that might not work without a forum anymore because the feedback loop isnāt there. Iām not sure Twitter is necessarily the best platform for that?
Already have this feature with my First Direct account.
Nice to have a second option though.
No, 3% of Ā£1,000 is Ā£30! Itās 0.3% of Ā£1k that is Ā£3. Another way of writing Starlingās fee for business account deposits is ā0.3% of the deposit amount, with a minimum of Ā£3.ā
Haha my maths is clearly fried!
I asked CS for new cards to use PO deposits, and was told they would send one for my personal account, but one wasnāt needed for my joint account, since that already works.
I donāt have any vertical cards, but my joint account card is much newer. Iād imagine, therefore, that all joint account cards, and personal vertical cards, have chips that are compatible with PO deposits.