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.

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“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%.