Kroo’s high-interest current account – An easy access alternative?

The current account currently betters several variable savings rates.

Challenger bank Kroo increased the rate on its high-interest current account to 3.03% AER today. This is earned on positive balances up to £85,000, the maximum protected by the Financial Services Compensation Scheme (FSCS).

Interest is also paid monthly, meaning it could be an ideal option for those looking to supplement their regular income.

As for other account features, it doesn’t come with a monthly fee while access to an overdraft is subject to eligibility.

One feature, which might entice future holidaymakers, is that it doesn’t charge fees for purchases made abroad.

This works in a similar way to Chase Bank’s current account, as spending is broadly accepted worldwide but is restricted to merchants who can facilitate Visa card purchases.  

As a digital provider, opening and managing this account is done entirely online.

Kroo’s high-interest current account rate currently betters several different accounts on our savings chart.

On the easy access savings table Santander and Yorkshire Building Society offer better rates of 4.00% AER and 3.35% AER respectively, but these do come with deposit restrictions.

Meanwhile, the top easy access ISA comes from Virgin Money at 3.00% AER. Not only is this paid yearly, but it is 0.03 percentage points lower than the rate on Kroo’s high-interest current account.    

Naturally, it’s important to remember that Kroo’s high-interest current account rate might be bettered, especially if the Bank of England increases interest rates on Thursday.

While Nationwide BS offers the best high-interest current account rate on the market, there’s the potential to earn more in interest through Kroo.

This is because Nationwide BS’s FlexDirect only offers a rate of 5.00% AER on balances up to £1,500. It means, according to Moneyfacts calculations, the most interest this current account could earn is £75.

By contrast, a balance of £2,500 in Kroo’s current account will match this payout.