Kroo current account 2% AER on up to £85,000

Sensory

Thought this deserved a mention here as it’s the only current account offering 2% AER interest (1.98% gross monthly) on the full £85,000. No credit check required. Not quite as good as Chase’s linked Saver, but it has debit card functionality.

jaypers

With Faster Payments being the norm I can’t really think of any advantages with this account, unless there are some other features worth considering? 

Band7

Way behind the leaders.

wiseonesomeofthetime

What other current accounts, that offer 2% on up to £85,000 deposits, are they "way behind"? 

isasmurf

There is a separate board for current accounts, where this is already being discussed. 
https://forums.moneysavingexpert.com/discussion/6368168/kroo-bank-discussion/p4

Band7

wiseonesomeofthetime said:

What other current accounts, that offer 2% on up to £85,000 deposits, are they "way behind"? 

Seeing you are one of the regulars, I take it this is a rhetorical Q. I could be mistaken though and you might prefer keeping your money in 2% accounts when you can easily get 2.5% or higher in accounts you can access instantly. If you want to pay by debit card as opposed to CC, FP deposits can be made to all current accounts instantly. I do have a Kroo current account but the 2% offer doesn't do enough for me to actually use it.

ZeroSum

wiseonesomeofthetime said:

What other current accounts, that offer 2% on up to £85,000 deposits, are they "way behind"? 

Why would you need to keep £85k in a current account?

I get 2.75% from santander, then if I need the cash in current account, it can be done at the click of a button 

k_man

ZeroSum said:

wiseonesomeofthetime said:

What other current accounts, that offer 2% on up to £85,000 deposits, are they "way behind"? 

Why would you need to keep £85k in a current account?

I get 2.75% from santander, then if I need the cash in current account, it can be done at the click of a button 

If you have Internet access.
The Kroo account makes a good second debit card account, funded with an emergency float that is earning a few % interest. Similar to Virgin.

Band7

k_man said:

ZeroSum said:

wiseonesomeofthetime said:

What other current accounts, that offer 2% on up to £85,000 deposits, are they "way behind"? 

Why would you need to keep £85k in a current account?

I get 2.75% from santander, then if I need the cash in current account, it can be done at the click of a button 

If you have Internet access.
The Kroo account makes a good second debit card account, funded with an emergency float that is earning a few % interest. Similar to Virgin.

My emergency float is a cashback VISA credit card, and the emergency float to this emergency float is a Mastercard credit card.

Paid off in full every month, of course. All this whilst my emergency cash earns up to 5.25% interest, and many of my DDs earn cashback.

Kroo is a nice idea, and it's nice to see another competitor in the current account space, but they are not going to rock any boats with 2% interest. On the other hand, they won't end up with 5-week account opening times, like Chase did when they offered a market leader.

k_man

Band7 said:

k_man said:

ZeroSum said:

wiseonesomeofthetime said:

What other current accounts, that offer 2% on up to £85,000 deposits, are they "way behind"? 

Why would you need to keep £85k in a current account?

I get 2.75% from santander, then if I need the cash in current account, it can be done at the click of a button 

If you have Internet access.
The Kroo account makes a good second debit card account, funded with an emergency float that is earning a few % interest. Similar to Virgin.

My emergency float is a cashback VISA credit card, and the emergency float to this emergency float is a Mastercard credit card.

Paid off in full every month, of course. All this whilst my emergency cash earns up to 5.25% interest, and many of my DDs earn cashback.

Kroo is a nice idea, and it's nice to see another competitor in the current account space, but they are not going to rock any boats with 2% interest. On the other hand, they won't end up with 5-week account opening times, like Chase did when they offered a market leader.

 Not everyone has access to credit cards, or to 5.25% savings, so the option of an additional current account, that pays good (current account) interest is a welcome addition and safety net.
 Also allows users to spend from a DC, without constantly having to move money from a savings account, comforted by the knowledge that their account balance isn't earning pitiful interest.

 If Kroo also supported Open Banking (for transaction tracking), this would be a tempting main account.

happybagger

Each to their own. I would never have any account (never mind a current account, main or otherwise) that only has an app as an option. What if you drop the phone? No access to laptop or pc.

And the t&cs state that cash withdrawals from "other banks" (do they have any machines themselves?) could charge a fee