Kroo Bank today announces the launch of its Flexible Cash ISA, reshaping the way millions of UK ISA users can save. Historically, ISAs have been hard to understand, often limiting basic financial flexibility like withdrawals or transfers.   

However, Kroo’s Flexible Cash ISA transforms ISAs from a powerful but restrictive method to a flexible, stress-free way to save – which customers can use like a day-to-day saver, all while paying a great tax-free return. 

As £1 trillion of the nation’s savings sit in accounts earning less than 2% interest, Kroo is challenging the banking’s interest rate inertia that has kept too many people stuck in a bad banking relationship for too long. It’s committed to rewarding its customers for banking with them, and has to date passed on over £68 million in interest to them, most of which was paid directly on the current account. This has helped build trust with nearly 200,000 customers.

Many providers currently impose rigid conditions on their ISAs, like limiting withdrawals, or cutting rates if customers take out a certain amount of their money. This puts an added burden on customers who, at a time of rising costs, find themselves having to choose between locking their money away to earn interest, or keeping it “lazy” in a current account while maintaining access to it.

Krooʼs Flexible Cash ISA allows users to earn 4.30% AER variable whilst topping up or withdrawing on demand, without penalties, and without affecting their £20,000 allowance. There are no disappearing bonus rates, no annual delays in interest payments, and the ISA can be opened with just £1. 

Nazim Valimahomed, Kroo’s co-founder, said: “When we founded Kroo, we knew we wanted to reward our customers for choosing to bank with us. Banking is a two-way relationship, and customers should feel that their bank is supporting them to make the most of their finances. 

“Cash ISAs have always been one of the most popular ways to save in the UK – but for too long, banks have imposed needless restrictions on customers, impacting their ability to grow their money. Our product, designed with simplicity in mind, is our way of pushing back on this trend of “lazy money” – allowing our customers, and their ISAs, to reach their true potential.”

Danny Haynes, Kroo’s Chief Product Officer, said: “ISAs are a powerful way to save, but they’re often complicated, and filled with restrictions that can put people off. 

We took a fresh approach and created a simple ISA, combined with a great rate. Customers can use this like an everyday saver –  and pay 0% tax on their returns. When used with Kroo Bankʼs personal current account, which also pays a 3.40% AER interest rate on your balance, customers can be confident that wherever their money is with Kroo, it’s growing.”