Ahead of Bank of England rate rise, Kroo hikes current account interest to 3.6%

After reaching an interest rate of 3.33 per cent in March, digital bank Kroo has announced its current account will pay 3.6 per cent from 1 June.

Unlike other banks, Kroo’s rate, which applies to balances up to £85,000, isn’t reserved for a savings account but is applied to a customer’s entire balance.

Kroo’s CEO Andrea de Gottardo says the move is in line with the Bank of England, which is expected this week to raise rates once again on Thursday from 4.25 per cent to 4.5 per cent.

“To change the banking industry for the better, we provide customers with a fair rate on their current account with a straightforward, no strings attached experience that they deserve from their bank,” said Gottardo.

Kroo was awarded its full banking licence without restrictions in June 2022 with a mission to become a socially conscious bank, donating five per cent of its “sustainable profits” to social causes its customers care about and planting a million trees.

The bank is also trying to encourage transparency in the banking industry, calling on customers to read the fine print of their existing financial products.

“It's important for customers to be reading the fine print to understand what they’re really buying into and make an informed decision on who they’re banking with,” said Gottardo.

“Increasing trust from both an educational and regulatory standpoint improves consumers’ access to more competitive products, allowing them to feel more confident in the deal they’re getting long-term.”

With its attractive interest rates and focus on transparency, Kroo is hoping to gain half a million new customers over the course of 2023.