Kroo review: A UK-based social banking app

London-based Kroo was established in 2016 with the aim of removing awkwardness from financial interactions with friends and family – splitting a restaurant bill, for example. Previously known as B-Social, Kroo announced it had become a fully licensed bank in June 2022.

Kroo’s current account

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Name	Product	Ratings	Account fees	Funding requirement	Interest (AER)	Arranged overdraft	Incentive	Representative example	Link
OFFER Current Account Current Account	OFFER	Finder score ★★★★★ ★★★★★	£0	No minimum funding requirement	3.33% AER		Earn 3.33% AER / 3.28% Gross (variable) on your balance.		Go to site View details		loading Fetching your data...

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What is Kroo?

Kroo offers a free, digital-only FSCS-protected current account and debit card, to help manage personal and social spending. Its current account has a monthly interest rate and a single rate overdraft subject to eligibility.

The app offers detailed spending insights and the card won’t charge foreign exchange fees or cash withdrawal fees when used overseas.

How does it work?

Kroo is a digital-only bank which has one main product, its free current account which can be opened through the app.

The current account has simple features to help you manage your money.

• Fee free. It is free to open a Kroo current account and there are no ongoing account management fees.
• Monthly interest. You can earn interest on your balance, up to £85,000.
• Arranged overdraft. Kroo offers a single rate on overdrafts which are subject to eligibility and by invitation only.
• Spending abroad. There are no fees for purchases made abroad when you use your Kroo card.
• ATM withdrawals abroad. As a summer promotion, Kroo won’t charge you for using ATMs overseas from 1 April to 31 October 2023. Just bear in mind that many ATM providers may charge a separate fee for using their ATM.
• Shared expenses. You can create different groups with friends (or family) to manage shared spending such as bills or splitting the cost of a holiday.

Kroo offers fingerprint and Face ID security features, as well as the option of freezing and unfreezing the card if you lose it. Plus, every time you refer a friend, Kroo promises to plant 20 trees to say thank you.

Is Kroo safe?

Kroo is now a licensed bank, meaning that up to £85,000 deposited in its current account will be protected by the Financial Services Compensation Scheme (FSCS) if Kroo were to go bust. It also means you could complain to the Financial Ombudsman about its bank services.

PayrNet Limited, which issues the Kroo card, is authorised by the Financial Conduct Authority (FCA). Under the Electronic Money Regulations 2011, PayrNet must hold your money in a segregated account which is protected by safeguarding requirements. This means that should PayrNet Limited become insolvent, your funds will be protected against claims made by creditors.

Pros and cons of Kroo

Our verdict

Having a current account which gives you monthly interest is a plus as it means that your money is always working for you. We also like the concept of allowing you to easily split bills and pay friends, as well as do your bit for the environment. As long as you are happy to conduct all your banking through an app, with fee-free spending abroad included, Kroo has a lot to offer.

Frequently asked questions

• Do I need to sign up for an account to use the Kroo app?

  Yes, now that Kroo is a fully-licensed bank, you will need to open a current account to access all its features. Its personal current account is replacing its prepaid e-money account.

• How can I top up my account?

  You can add money to your Kroo account using your sort code and account number via a transfer, or by using the Kroo instant in-app bank transfer from an existing bank account.

• Does Kroo link to my bank account?

  No. You can pay for items and settle with friends using another bank card outside the app and add those transactions to a group. Or if you have a Kroo card you can split transactions and get paid back in the app.