New digital bank Kroo ups in-credit interest rate to 3.33%… as it says it has now cleared its backlog of new customers waiting to join
- The app-only bank launched its current account offering in December last year
- Kroo has attracted 42,000 bank account customers in its first three months
- But some say they have had to wait weeks to open an account due to demand
Kroo is a fully licensed digital bank founded in 2016. It secured its full UK banking licence in 2022
New digital bank Kroo has once again ramped up its bank account offering in a bid to attract new customers.
The app-only bank, which launched its first ever current account in December last year has upped its in-credit interest rate from 3.03 per cent to 3.33 per cent, on balances up to £85,000.
It is one of the most competitive in-credit interest offers available, and puts the current account in line with the best-buy easy access savings rates.
Kroo has attracted 42,000 bank account customers to date and will be hoping its new and improved interest rate will entice increasing numbers of joiners to follow suit.
It has also said that sign-up delays are now fixed and that customers should not have to wait long to set up an account.
Last month, Kroo came under fire on Twitter from a swathe of angry customers who had been kept waiting for their bank account applications to be approved.
In some cases, customers had been kept waiting weeks due to a surge in sign-ups resulting in a customer backlog. The bank says that the backlog says has now cleared and that normal service has resumed.
A spokesperson for Kroo said: ‘Following high demand for Kroo’s current account, we can now confirm our application backlog has been cleared.
‘Approved applications for a Kroo current account have been notified their account is now open, and customers whose applications have been declined have also been informed.
‘We have automated the onboarding process so a greater number of applications now go through systematically and, whilst the majority of applications do so, large deposits and some applications require further checks.
Kroo’s chief executive, Andrea De Gottardo
‘If customers want to check the progress of their application, they can expect a reply from Kroo in one to five working days.’
Speaking about the new in-credit interest rate, Andrea De Gottardo, chief executive of Kroo said: ‘We truly believe in changing the banking industry for the better by providing customers with a fair deal and a straightforward, no strings attached experience they deserve from their bank.
‘That’s why we’ve decided to further increase our current account interest rate in line with the Bank of England.
‘We provide customers with an account to keep all their money in one place and take advantage of the levels of high interest usually associated with a savings account. Now more than ever, who you bank with really does matter.’
What is Kroo and should you open an account?
Kroo is only the third bank to receive a full UK banking licence since 2016, and customers are fully protected under the Financial Services Compensation Scheme.
It has labelled itself as a ‘socially conscious’ bank and is aiming to appeal to people by promising to plant two trees for every account opened, with the aim of planting one million trees by the end of 2023.
It has plenty of competition in the app-based bank arena, with banks such as Monzo and Starling already serving millions of UK customers.
> Read our review of the top four digital banks
The Kroo app, like many other app-based accounts, gives customers a breakdown of their spending habits.
The 3.33 per cent in-credit interest rate change arguably maintains it as one of the best UK bank accounts for in-credit interest.
Nationwide offers 5 per cent interest to new joiners in the first year – but only on balances up to £1,500.
Someone keeping a balance of £10,000 in their Kroo current account could expect to earn £333 over the course of a year, if the interest rate remains the same.
> Check out it measures up against other banks
Compared to the best easy-access savings rates on the market, Kroo looks very competitive, with the best easy-access rate currently 3.4 per cent.
In addition to the top-tier interest rate, Kroo’s current account allows customers to share, track and split bills.
It also offers zero fees on spending when using its debit card abroad and a lower overdraft APR than most high street banks.
Those wishing to take advantage of the Kroo deal won’t need to use the current account switching service to do so.
It could simply be used as a secondary bank account, as there are no fees or requirements for setting up an account.
To set up an account, switchers will need to download the mobile app and run through a five to 10 minute sign-up process.
THIS IS MONEY’S FIVE OF THE BEST CURRENT ACCOUNTS