Kroo Bank has introduced a new offer allowing customers to earn 3% interest on their current account balance. This rate includes a 2% bonus available for the first 12 months, with no fees or minimum deposit required. The bank aims to attract the nearly £306 billion currently sitting in non-interest-bearing accounts in the UK, according to Bank of England data. Kroo Bank estimates that if this money were held in accounts paying 3% interest, customers could earn a cumulative £9.18 billion a year in interest.
Veronika Lovett, CEO of Kroo Bank, emphasized the need for customers to make their money work harder, especially with rising inflation. The account is covered by the Financial Services Compensation Scheme (FSCS), protecting deposits up to £120,000 per person. Moneyfacts has highlighted the account as a ‘Pick of the Week’, recommending it for those who hold large sums in their current accounts.
Adam French, head of consumer finance at Moneyfactscompare.co.uk, noted that while savings accounts may offer higher returns, Kroo Bank’s app-based account is ideal for those who keep significant balances in current accounts. He reminded potential customers that the 3% interest rate is for new customers only and includes a 2% bonus for the first year. French also pointed out the account’s fee-free transactions abroad, making it a convenient option for frequent international spenders.