Starling Bank is eliminating the £2 monthly fee for its Kite debit card and app for children following research that revealed the UK’s young generation is becoming more financially savvy. The study, conducted by Mortar Research among 2,000 children aged 6-12 in September 2023, found that even six-year-olds are saving for big-ticket items like cars (26%), university (19%), and houses (18%).
On average, children receive £6.10 per week in pocket money, and nearly a third of them receive their pocket money directly from their bank.
This move by Starling Bank to remove the monthly charge follows a series of updates to its children’s card and app, including the introduction of KiteLink, a personalized digital link that enables friends and family to instantly send money to Kite customers, eliminating the need for cheques or cash.
As an added incentive, Starling also offers a 3.25% AER interest rate on general account balances up to £5,000 for its adult Personal and Joint Current accounts, which includes balances held in a child’s Kite Space.
This change in pricing follows a similar decision by NatWest in February, which eliminated monthly fees on its Rooster Money prepaid kids’ debit cards.