New digital bank Kroo raises deposit 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 attracted 42,000 bank account customers in its first three months
- But some say they had to wait weeks to open an account due to demand
Kroo is a fully licensed digital bank founded in 2016. It obtained its full UK banking license in 2022
New digital bank Kroo has once again expanded its range of bank accounts with the aim of attracting new customers.
The app-only bank, which launched its first-ever checking account in December last year, raised its deposit interest rate from 3.03% to 3.33%, on balances of up to 85 £000.
This is one of the most competitive credit interest offers available, and puts the checking account in line with the best savings rates that are easy to access.
Kroo has attracted 42,000 bank accounts so far and hopes his new improved interest rate will inspire more members to follow his lead.
He also said registration deadlines are now fixed and customers shouldn’t have to wait long to create an account.
Last month, Kroo came under fire on Twitter from a slew of angry customers who were waiting for their bank account applications to be approved.
In some cases, customers had to wait for weeks due to an increase in registrations resulting in a backlog of customers. The bank says the backlog is now cleared and normal service has resumed.
A Kroo spokesperson said: “Following strong demand for Kroo’s current account, we can now confirm that our backlog of applications has been cleared.”
“Approved applications for a Kroo checking account have been notified that their account is now open, and customers whose applications have been declined have also been notified.
“We have automated the onboarding process so that more applications are now processed consistently and, while the majority of applications do so, large filings and some applications require additional checks.
Kroo CEO Andrea De Gottardo
“If customers wish to check the status of their application, they can expect a response from Kroo within one to five business days.”
Speaking about the new deposit interest rate, Andrea De Gottardo, Managing Director of Kroo, said: “We truly believe in changing the banking industry for the better by providing customers with a fair deal and a simple, unconditional experience. they deserve from their bank.
“That is why we have decided to further increase our current account interest rate in line with the Bank of England.
“We provide our customers with an account to keep all their money in one place and take advantage of the high interest rates typically associated with a savings account. Now more than ever, who you do business with really matters.
What is Kroo and do I need to open an account?
Kroo is only the third bank to receive a full banking license in the UK since 2016, and customers are fully protected by the Financial Services Compensation Scheme.
It has called itself a “socially responsible” bank and aims to woo people by promising to plant two trees for every account opened, with the aim of planting one million trees by the end of 2023.
There is a lot of competition in the app-based banking arena, with banks such as Monzo and Starling already serving millions of UK customers.
> Read our review of the four best digital banks
The Kroo app, like many other app-based accounts, gives customers a breakdown of their spending habits.
The change in deposit interest rate of 3.33% makes it arguably one of the best UK bank accounts for deposit interest.
Nationwide is offering 5% interest to new entrants in the first year – but only on balances up to £1,500.
Someone who keeps a balance of £10,000 in their Kroo checking account can expect to earn £333 over the course of a year, if the interest rate stays the same.
> Check that it compares to other banks
Compared to the best easy access savings rates in the market, Kroo looks very competitive, with the best easy access rate currently at 3.4%.
In addition to the highest interest rate, Kroo’s current account allows customers to split, track and split bills.
It also offers zero fees on spending when using its debit card abroad and a lower overdraft APR than most major banks.
Those wishing to take advantage of the Kroo offer will not 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 to open an account.
To create an account, users will need to download the mobile app and go through a five- to 10-minute registration process.
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