After launching in December 2022, Kroo increased the interest rate it pays on its current account from 2% to 3.03% in February. But the rate will increase again from next month.

Kroo has attracted 42,000 bank account customers in its first three months of operating. But the previous rate increase, and a recommendation from Money Saving Expert founder Martin Lewis, saw the bank swamped by demand last month with some customers waiting more than a week for accounts to be opened.

From April, Kroo will be paying 3.33% on current account balances up to £85,000. The bank said it was “committed to disrupting the legacy banking system by passing on fair interest rates to its customers.”

Andrea De Gottardo, Kroo CEO, said: “We truly believe in changing the banking industry for the better by providing customers with a fair deal and a straightforward, no strings attached experience they deserve from their bank,”

“That’s why we’ve decided to further increase our current account interest rate in line with the Bank of England.

“We provide customers with an account to keep all their money in one place and take advantage of the levels of high interest usually associated with a savings account. Now more than ever, who you bank with really does matter.”

The rate of 3.33% is competitive compared to other current accounts, but it can be beaten by the best paying easy access savings accounts including Chip which pays 3.4% and Cynergy Bank which pays 3.25%.