Kroo Bank: current account overview

Looking for a new current account? If you prefer to manage your money online or through a mobile app, a digital bank could be the ideal fit.

One of the latest ‘digital challenger’ banks to launch in the UK is Kroo Bank. It got its banking licence in 2022, and now offers an FSCS-protected current account along with personal loans.

But what is the Kroo Bank current account like? Find out everything you need to know right here in this guide. We’ll run through all the main features, fees and how to open an account.

And while you’re weighing up your options, make sure to check out the Wise account. It’s ideal for international transactions, including overseas card payments, and also gives you something back with interest on your balance.

But for now, let’s take a look at what Kroo has to offer.

What is Kroo Bank?

Kroo Bank launched in 2016, but only got its UK banking licence in 2022. At this time, it launched its current account. The bank only really has this one product at the moment, although it also offers personal loans.

Kroo is a digital-only bank, which means that it doesn’t have any physical branches. Accounts are managed wholly through the Kroo mobile app.

The fintech company also describes itself as a “bank with a conscience”. It aims to plant two trees for every new customer who signs up, with the ultimate goal of planting one million trees by 2024.¹

Although it hasn’t been running for long, Kroo has already racked up some awards and nominations. It was named the Best Newcomer at the British Bank Awards 2021, and a finalist for Best Personal Finance App in the same awards in 2022.¹

Kroo Bank current account features

Kroo only has one current account, which has all the features you need for everyday banking - and a few extras too.

Here’s what you’ll get when you open an account:²

• A Kroo debit card

  This is a contactless Visa, that can be used anywhere that Visa payments are accepted. This includes online and real-world shops, plus ATMs when you need to withdraw cash. You can also add your Kroo Bank debit card to mobile wallets such as Apple Pay and Google Pay.

• Optional overdraft

  This has a single rate of 24.9% EAR/APR representative (variable) and is available subject to eligibility (and by invitation only).

• Interest on your balance

  The Kroo current account pays 4.35% AER/4.26% Gross (variable) interest on balances up to £85,000.

• Use Kroo at home or abroad

  The bank charges no fees on purchases when you use your Kroo card in the UK or overseas.

• Access to tools and features in the Kroo mobile banking app

  This includes real-time transaction information and notifications, card freeze/unfreeze, bill splitting and shared expenses tools.

Kroo offers UK-based customer support if you need it. Simply use the message function in the Kroo app to get help or ask a question.

How to manage the Kroo Bank current account

If you like to pop into a branch or speak to someone to manage your banking, Kroo probably isn’t for you.

It’s a digital-first bank, which means that you’ll primarily manage your account using mobile banking. It doesn’t have any physical branches.

Fees to use the Kroo Bank current account

Now we come to possibly the most important question - how much does it cost to use the Kroo Bank current account?

You’ll be pleased to know that there’s no fee to open the account, and no monthly fee to pay after that. The bank also lets you spend overseas using your Kroo Bank debit card abroad without charging any fees.

There are still a handful of other fees you should know about though. Let’s take a look:³

Type	Fee
Maintaining the account	No fee
Cash withdrawals in foreign currency outside the UK	No fee for withdrawals up to £200 a month until 31st October 2023 ; (ATM operators may charge their own fee)
Debit card payments in foreign currency	No fee
CHAPS payments within the UK	£20

How to open a Kroo Bank current account

Like the sound of the Kroo Bank current account so far? The next step is to apply.

Read on for details of who is eligible to open an account, what documents and details you’ll need, and how to get started with an application.

Eligibility

Kroo doesn’t have strict eligibility requirements to open an account. This means that almost anyone can open one.

You’ll just need to be:⁴

• A resident of the UK, Channel Islands or the Isle of Man
• At least 18 years old.

And that’s it! Bear in mind that there’s a chance that Kroo may do a credit search on you when processing your application. So it could be worth checking your credit score before applying.

What details and documents you’ll need

Before you start your application, make sure you have the following details and documents to hand:

• Your personal details, including home address, contact details, nationality and tax residency status (if you’re new to Kroo Bank)
• Your financial details, such as monthly take-home pay (if applying for an overdraft)
• Proof of ID, such as your UK passport or driver’s licence.

How to apply for the Kroo Bank current account

When you’re ready to apply, you’ll need to download the Kroo Bank app to your smartphone or other device. The app is available to download on Google Play and the App Store for compatible devices.

The app is the only way to apply for a Kroo account - you can’t do it online or over the phone.

Once you have the app, you’ll just need to follow the on-screen steps to sign up for an account. At some point in the process, the bank may ask you for a photo of your passport, driving licence or other form of photo ID. You’ll also need to take a selfie so that the bank can compare the two and verify your identity.

At the moment, Kroo isn’t signed up to the Current Account Switch Service. This is a free service which makes it easier to switch banks, in as little as 7 working days. But there’s a chance that Kroo might sign up in the future.

How long does it take to open a Kroo Bank current account?

Kroo Bank doesn’t say exactly how long it takes to open its current account. But it is experiencing high volumes of applications at the moment, and says that it could take up to 7 days to review applications.⁵

So, if you have your heart set on a new Kroo account, you may need to be a little patient.

Is the Kroo Bank current account available as a joint account?

No, Kroo doesn’t currently offer joint accounts. At the moment, you can only open its current account in one name.

Can you make international transfers with the Kroo account?

You can do a lot with the current Kroo account. But unfortunately, international transfers isn’t a service the bank provides.

So you’ll only be able to use your account to make and receive payments within the UK. You can’t send money overseas, or get paid by anyone in another country.

Choose Wise to manage your money internationally

If international transfers is a service you really do need, Kroo may not be the best choice.

So check out Wise, an electronic money institution that offers a powerful multi-currency account that lets you do it all - managing your money internationally online or in the handy Wise app.

When you sign up online with Wise, there’s no initial or monthly fee to pay.

You’ll get an easy-to-use account for managing your money in 40+ currencies, including making international payments for low fees and mid-market exchange rates. These rates are often much better than you’ll get when you use a bank for international transactions.

You can even receive money for free in 9 major currencies, as Wise gives you your own local account details.

For a one-time cost of just £7, you can get a Wise debit card which has no foreign transaction fees for spending abroad. You can withdraw up to £100 a month from overseas ATMs with no Wise fees.

Please see the Terms of Use for your region or visit Wise fees & pricing for the most up-to-date information on pricing and fees.

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So, there we have it - the full lowdown on Kroo Bank and what its current account has to offer.

The account has some great features, including that competitive interest rate and no fees for spending abroad. It’s also good to know that Kroo is licensed and your money protected.

But the account also has its limitations, with the major drawback being no option to make or receive international payments.

Ultimately though, it’s down to you to weigh up your options and decide if Kroo is right for you.

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Sources used:

1. Kroo - About us
2. Kroo - Current Account
3. Kroo - Current Account - Fees
4. Kroo - Terms and Conditions for Personal Current Account
5. Kroo - Help - Why is my application taking so long to review?

Sources last checked on date: 01-Aug-2023