Kroo is a digital challenger bank with a limited offering of one current account – and no option for savers. However, with a relatively attractive rate of interest on in-credit balances, no fees for spending abroad, and a focus on sustainability and other perks, Kroo offers a few good reasons to sign up.
Pros
- 3.60% AER on in-credit balances
- No overseas transaction fees
- No account fees
Cons
- ATM withdrawal fees after £200
- No seven-day switching
- Overdraft by invitation only
Earn 3.60% AER on credit balances
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Kroo Bank at a glance
Formerly known as B-Social and operating as a fully licensed bank since 2022, Kroo is a digital bank whose entire offering is a free current account available via its mobile app.
The challenger bank positions itself as an ethical provider, planting two trees for each current account sign-up, with aims to plant a million by 2024.
The Kroo app is slick and allows users to track spending with real-time spending insights, and easily split bills with others.
Here’s a look at its current account offering and everything else you need to know.
Kroo current account
New users can sign up for a free Kroo current account via its app in around 10 minutes using photo identification.
Kroo current account holders can earn 3.60% AER on balances up to £85,000, and interest is paid monthly. This rate is more generous than the average current account, but unlike many banks, Kroo doesn’t yet have a separate savings account offering – and savings rates elsewhere are generally higher than this.
If you use your physical or digital Kroo debit card overseas, there are no foreign transaction fees to pay. Be aware that some territories don’t accept Kroo, however. For example, you can’t use your account in Egypt or the Bahamas.
And each month, only the first £200 worth of withdrawals from cash machine are fee-free. After that you’ll pay a 3% charge.
Kroo Bank overdrafts, switching and security
Overdrafts are available, subject to invitation and application. Use its overdraft facility and you’ll pay an interest rate of 24.9% EAR/APR representative (variable). At this rate you’d pay £12.91 in interest if you were overdrawn by £500 for three weeks.
Kroo’s invite-only overdraft has no fees or penalties. The bank says it doesn’t allow unarranged overdrafts but it’s possible to go into an unarranged overdraft for technical reasons. When this happens, interest is charged at the same rate as its arranged overdrafts, but capped at £18.
Depending on personal circumstances, account holders can lower, raise or settle their overdrafts whenever they wish.
As with many digital-first banks, Kroo doesn’t currently support cash or cheque deposits. Kroo is also not a participant of the Current Account Switching Service (CASS), so you can’t take advantage of seven-day switching to join.
Kroo’s app has biometric security, locking your account behind either a fingerprint or facial scan. In the app, users can freeze and unfreeze their misplaced or stolen debits cards and the bank offers UK-based support.
Despite being a new bank and a relative unknown, deposits with Kroo are covered by the Financial Services Compensation Scheme. Under the scheme, up to £85,000 of your money is legally protected if the financial institution holding it goes bust.
