Trying to open a Kroo account? There's an up to 10-day delay due to high demand – here's what you need to know
App-only bank Kroo has admitted it's taking up to 10 days to open some accounts as it struggles to meet demand after it launched a market-leading interest rate. If you've recently applied for the account but are struggling to open it, here's what you need to know.
Kroo is a new app-only bank, which launched its current account in December last year. It originally offered 2% interest on up to £85,000 held in the account, which was easily beaten elsewhere, but on 1 February it increased this to 3.03% – which made it the highest easy-access rate.
This sparked huge demand for the account – it was featured in our Weekly Money Tips email as well as on The Martin Lewis Money Show on ITV – with 40,000 applications since 25 January. This led to Kroo struggling to open accounts, with 6,000 still under review and waiting to be opened.
See our Top Savings Accounts guide for more on the best savings accounts and rates that now beat Kroo.
Most accounts are now opened instantly, but 30% are taking up to 10 days
Kroo told us that 70% of accounts are approved automatically, with accounts opened in a few minutes and physical cards delivered within three days.
However, the rest – which Kroo says are subject to further checks – are taking a maximum of 10 days to process. This includes anyone looking to deposit between £20,000 and £40,000.
The bank had also placed some customers in a waiting room. While this is no longer in place, Kroo says anyone already on the waiting list will be contacted in the next 48 hours inviting them to apply.
It has also confirmed additional staff have been hired to deal with the backlog and expects it to reduce significantly in the next week.
How to open the Kroo account
To open an account, download the free Kroo app* and follow the sign-up instructions – there's no monthly fee attached to the account. It requires no hard credit check to open the account, either.
Should you need any help you can contact Kroo in the following ways:
- Live chat in the app, between 7am and 7.30pm. Once you've opened the app, go to profile > help and support > chat with support. Kroo has warned that there is a queue for customer chats.
- Call 0800 802 1323. Lines are open between 9am and 5.30pm.
- Email firstname.lastname@example.org.
You can, however, currently earn a higher 3.05% on up to £250,000 easy-access with Tandem – see our Top Savings guide for more info.
Your cash is protected up to £85,000
Even though it's new, it's a UK-regulated bank, so any money you deposit with Kroo is protected up to the usual £85,000 per person limit under the Financial Services Compensation Scheme (FSCS).
So if you're using Kroo as an easy-access savings account, you'll get the same level of protection as you would with most standard savings accounts. See safe savings for full information.