You can now get 3.3% in-credit interest on your current account with digital bank Kroo

The new digital bank Kroo has again expanded its bank account offerings to attract new customers.

The app-only bank, which launched its first-ever current account in December last year, has raised its lending rate from 3.03 per cent to 3.33 per cent, for deposits of up to £85,000.

It’s one of the most competitive in-credit interest offers available, aligning the checking account with best-buy, easily accessible savings rates.

Kroo has attracted 42,000 bank account customers to date and hopes the new and improved interest rate will entice more and more new customers to follow suit.

It also said that login delays have now been fixed and customers won’t have to wait long to create an account.

Last month, Kroo came under fire on Twitter from a slew of angry customers waiting for their bank accounts to be approved.

In some cases, customers had to wait for weeks due to a wave of applications, resulting in customer backlogs. The bank says the backlog has now been cleared and normal services have resumed.

A Kroo spokesperson said: ‘Following the strong demand for the Kroo current account, we can now confirm that our application backlog has been cleared.

“Approved applications for a Kroo current account have been notified that their account is now open, and customers whose applications have been rejected have also been notified.

“We have automated the onboarding process so that a greater number of applications are now processed systematically and, while most applications do, large deposits and some applications require further checks.

“If customers want to check the progress of their request, they can expect a response from Kroo within one to five business days.”

Andrea De Gottardo, CEO of Kroo, said of the new in-credit rate: “We truly believe in changing the banking industry for the better by giving customers a fair deal and a straightforward, no-obligation experience they deserve. their couch.

“That is why we have decided to further raise our current account interest rates in line with the Bank of England.

“We offer customers an account to keep all their money in one place and take advantage of the high interest rates usually associated with a savings account. Now more than ever it matters who you bank with.’

What is Kroo and do you need to open an account?

Kroo is only the third bank to receive a full UK banking license since 2016, and customers are fully protected by the Financial Services Compensation Scheme.

It has branded itself as a ‘socially conscious’ bank and wants to appeal to people by pledging to plant two trees for every account opened, aiming to plant one million trees by the end of 2023.

It has 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 overview of the four best digital banks

The 3.33 percent 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 members in the first year – but only on balances up to £1,500.

Someone who maintains a balance of £10,000 in their Kroo checking account could earn £333 over the course of a year, if interest rates remain the same.

> See how it compares to other banks

Compared to the best accessible savings rates in the market, Kroo looks very competitive, with the best easily accessible rate currently at 3.4 percent.

In addition to the top interest rate, Kroo’s checking account allows customers to share, track, and split bills.

It also offers zero spending fees when using its debit card abroad and a lower overdraft APR than most major banks.

Anyone who wants to take advantage of the Kroo deal does not have to use the switching service.

It can simply be used as a secondary bank account as there are no fees or requirements for setting up an account.

To create an account, switchers must download the mobile app and go through a five to ten minute signup process.