Kroo Bank UK Review: Fees, Foreign Use & Honest Verdict
Are you looking for a current account that actually pays interest? Or just a debit card that won’t hammer you with fees abroad?
Kroo keeps popping up for both.
It’s not flashy. It’s not packed with perks. But it does one thing very well, it pays interest on your current account balance. And in 2026, that’s still unusual in the UK.
I’ve had a Kroo account for years now. Here’s the honest breakdown of what it’s good at, what it isn’t, and whether it’s worth opening today.
Kroo review
This isn’t a revolutionary banking app. But paying interest on a current account balance — up to half a million pounds — is rare. That’s Kroo’s core appeal.
Pros
- Interest paid on current account balance
- 0% foreign spending fees
- No monthly fee
Cons
- You can only withdraw £200 abroad per month fee-free
- Very limited “extra” features
- No international payments (SWIFT/SEPA)
Reviewed by Household Money SavingWhat is Kroo?
Kroo began as an e-money app before becoming a fully licensed UK bank in 2023.
That means it’s a proper UK current account with:
• Direct Debits and standing orders
• An arranged overdraft (subject to checks)
• Interest paid on your balance
• A debit card
Is Kroo safe?
Short answer: yes.
Kroo is protected by the Financial Services Compensation Scheme (FSCS).
Kroo pays interest on balances up to £500,000, but only the first £120,000 is protected under FSCS rules. Anything above that wouldn’t be covered if the bank failed.
It’s regulated by the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA), just like the high street banks.
Security features include:
• Biometric login
• Instant card freeze/unfreeze
• Real-time notifications
From a safety perspective, Kroo is on par with any other fully licensed UK bank.
Kroo interest rate (February 2026 update)
This is what most people care about.
Kroo currently pays 2.65% AER (2.62% Gross, variable).
It operates on a tracker model — paying 1.10% below the Bank of England base rate. So if the base rate moves, Kroo’s rate moves.
You now earn interest on balances up to £500,000.
Is 2.65% market-leading? No.
But for a current account, where most banks still pay nothing, it’s respectable.
If you’re chasing higher rates for savings specifically, apps like Chip often offer more competitive rates. But those aren’t everyday current accounts.
How much does Kroo cost?
There’s no monthly fee.
You’ll only pay if:
• You use an arranged overdraft (representative APR around 24.9% variable)
• You withdraw more than £200 per month in cash abroad (3% fee after that)
Does Kroo charge abroad?
Card spending abroad: 0% fee.
Exchange rate: Visa rate (close to interbank).
ATM withdrawals abroad: First £200 per month free, then 3%.
That £200 monthly ATM limit remains Kroo’s biggest weakness.
If travel is a priority, Starling Bank or Chase UK are generally stronger options for overseas withdrawals.
See how it compares to the best debit cards to use when abroad.
App features (and limitations)
Kroo keeps things simple.
You get:
• Spending categories
• “Pots” for organising money
• Group payments and bill splitting
But you don’t get:
• International transfers (SWIFT or SEPA)
• Advanced automated budgeting tools
• Round-ups or major cashback perks
It’s designed to be straightforward, not feature-packed.
You also still can’t reliably change or view your PIN inside the app — you’ll need to visit an ATM. Small irritation, but worth noting.
Do you need ID for Kroo?
Yes.
You’ll need a passport or driving licence and a short selfie verification. Standard UK bank onboarding.
Is Kroo a good bank in 2026?
Kroo is good if you want:
• Interest on your everyday balance
• No monthly fee
• 0% foreign spending fees
• A simple, clean app
It’s not ideal if you want:
• The highest savings rate
• Unlimited overseas ATM withdrawals
• Full budgeting automation
• International payment functionality
My Kroo review verdict
Kroo is dependable. And slightly boring.
But boring banks that quietly pay interest aren’t a bad thing.
For me, it works best as a secondary account, somewhere to park cash and earn interest without locking it away.
Would I open it purely for the interest? Yes.
Would I use it as my only bank? Probably not.
The core message still stands in 2026:
Kroo is built to pay interest on your daily balance. Everything else is secondary.
Further reading
If you’re looking for something more, take a look at these banks that offer cashback.
FAQ: Kroo Bank
Is Kroo Bank safe?
Yes. Kroo is a fully licensed UK bank regulated by the FCA and PRA. Deposits are protected by the Financial Services Compensation Scheme (FSCS) up to £120,000 per person, per bank.
Is Kroo a real bank?
Yes. Kroo became a fully authorised UK bank in 2023. It offers a proper current account with Direct Debits, standing orders and overdrafts.
Does Kroo charge fees abroad?
Kroo does not charge foreign transaction fees on card spending. You can withdraw a limited amount of cash abroad each month without fees, after which a percentage charge applies.
Do you need ID to open a Kroo account?
Yes. You’ll need to provide a passport or driving licence and complete identity verification through the app.
Does Kroo pay interest on your balance?
Yes. Kroo pays variable interest on your current account balance, up to a high account limit.
