Loot bank review

Loot recently entered administration after failing to receive backing from RBS. Loot had to call in administrators on May 22nd 2019 after attempts to raise new investment failed. A spokesperson for the administrators, said they were in “advanced negotiations” with a potential investor that could take over Loot’s service and prevent disruption to existing customers.

Best for

App experience

Starling Bank

Best for

£125 switch incentive

HSBC Advance Bank Account

Best for

Money management

Plum

Best for

Budgeting

Yolt

How we chose our top picks

For our top picks, we've evaluated a number of digital bank accounts against a range of metrics to select accounts for specific needs. Keep in mind that our top picks may not always be the best for you, and it's wise to compare for yourself to find one that works for you. Read our full methodology here to find out more.

Starling Bank: award-winning banking on your mobile

• No monthly fees or fees overseas
• Apply in minutes, direct from the app
• Winner 2020 - Best Current Account, British Bank Awards

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What is Loot?

Founded in 2014, Loot offers a digital-only current account with built-in tech to help manage your money.

Aimed at millennials and students, it enables users to set budgets and keep on top of progress. So, if you set a monthly budget Loot will tell you what you need to spend today to hit that. It will continue to recalculate for you dynamically, so if you spend too much today you’ll have less to spend tomorrow.

If money is left over, it can be transferred to a ‘Loot Goal’ or spend on a treat.

It’s a way to streamline and manage your day to day spending while working towards bigger goals, such as holidays or larger purchases.

How does Loot work?

Using Loot allows you to budget, put money aside and pay using your contactless card. On the app you can:

• Budget: Set a daily, weekly, fortnightly, monthly, or make a custom budget. Loot will provide you with a daily spend limit so you can track your spending and save effectively. You can then see your budget in different time frames, so if you have a monthly budget Loot will tell you what you need to spend today to hit that.
• Spending Guide: Shows you how much you can spend each day, which sits in the budget circle. The circle will go from blue to yellow to orange to red, depending on whether you’re spending too fast.
• #LootGoals: Put money aside for goals and larger purchases by creating a Loot Goal. You can track your progress as you go.
• Go abroad: Use the live exchange rate and pay no additional charges when making purchases abroad in over 210 countries.
• Instant transaction list: View your spending real-time while keeping track of what you’re spending and where. When you make purchases abroad, Loot will convert your spending into GBP so you can see the current exchange rate.
• Pause/Unpause: You can pause your account if your card or phone gets lost or stolen. If your items are recovered, you can unpause the account and continue using your card.
• Spending insights (only on Android currently): You can see your total spend for each month and see a breakdown by category.

Loot’s fees and limits

• The first two ATM withdrawals are free each month, thereafter it is £1 per withdrawal.
• Maximum balance of £25,000
• Maximum ATM withdrawal: Daily is £250, monthly £3,000 and annually the limit is £15,000
• There is no monthly fee and the card itself, along with any replacement cards you may need, are free also.

Using Loot abroad

You can use your Loot card in any shop, hotel or bar, worldwide, that accepts Mastercard. Loot use the Mastercard wholesale rate to convert your pounds into foreign currency. This doesn’t incur any fees or charges.

Limits on the account do not change, regardless of whether you are in the UK or not.

Is Loot safe?

Your Loot card is a Mastercard and is protected by Mastercard rules.

Your money is kept in a separate, protected account and is available anytime you need it. However, your account isn’t covered by the Financial Services Compensation Scheme.

This separate, protected account is controlled by Wirecard, the company who issues our Loot cards. In the unlikely event, Wirecard becomes insolvent, your money would be protected against any claims made by creditors.

Pros and cons of Loot

Compare Loot against its competitors

Loot has many competitors including Monzo. Still interested in a digital-only banking app? Here are some of the most popular apps with our readers. Alternatively head to our digital banking homepage to for latest news, reviews and comparisons of digital banks and challengers.

Sort by:

Name	Product	Ratings	Interest (AER)	Arranged overdraft	Key benefits	Link	Representative example
HSBC Advance Bank Account		We say ★★★★★ You say ★★★★★	0%	39.9% EAR variable	£125 when you switch	Go to site	Plus earn 2.75% AER / gross interest with the linked HSBC Regular Saver To be eligible for HSBC Advance, customers will need to pay in a minimum of £1,750 per month or £10,500 over 6 months and must qualify for a minimum £1,000 arranged overdraft. To be eligible for the £125 switching offer, customers must switch from a non-HSBC Group current account product. Other T&Cs apply. Representative example: If you use an arranged overdraft of £1,200, you’ll be charged interest at 38.9% (0% EAR variable on first £25, 39.9% thereafter).		loading Fetching your data...
Current Account - Age 18 and over		We say ★★★★★ You say ★★★★★	0%	15% EAR variable	Award-winning current account, apply in minutes	Go to site	No fees for spending or withdrawing cash overseas - currencies are converted at Mastercard’s standard exchange rate Representative example: If you use an arranged overdraft of £1,200 you'll be charged interest at 15% EAR variable.		loading Fetching your data...
Everyday Current Account		We say ★★★★★ You say ★★★★★	0%	39.94% EAR variable	Interest and fee free overdraft for first four months when you switch	Go to site	Up to 15% cashback at a range of major retailers Representative example: If you use an arranged overdraft of £1,200 you'll be charged interest at 39.94% EAR variable.		loading Fetching your data...
Activeplus		We say ★★★★★	0%	N/A	Guaranteed acceptance plus a credit building feature	Go to site	Account fee of £5.95 per month.		loading Fetching your data...
thinkmoney Managed Current Account - Managed Current Account		We say ★★★★★	0%	N/A	Guaranteed acceptance	Go to site	Earn cashback on your purchases when you shop through the ThinkMoney rewards portal Account fee of £10 per month or £15 per month.		loading Fetching your data...

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Frequently asked questions

• But where does my money actually go?

  The Loot card and account is an electronic money product supplied by Wirecard card solutions. Wirecard are authorised and regulated by the Financial Conduct Authority to conduct electronic money service activities. In short, Wirecard provide your Loot account and prepaid debit card.

• Can I get a statement?

  Yes. You can export your statement as a PDF from the app.

• Is Loot covered by the FSCS

  No. However, Loot are not allowed to invest or lend the money on your Loot card. This is a good thing, as Loot are required by law to hold 100% of your cash until you want it meaning that if Loot did ever go bankrupt, all of their customer cash is held safely.

• Can I use my Loot card abroad?

  Yes. Your Loot card can be used worldwide, and as it uses the MasterCard wholesale rate to convert your pounds into foreign currency, no additional fees or charges are incurred.

• Is Loot a current account?

  Yes, Loot is a digital-only current account.

• Does Loot have an overdraft?

  No, Loot does not offer an overdraft function, preventing users from getting into debt.

• How do I cancel Loot?

  Your Loot account can be canceled free of charge by simply contacting Loot within 14 days of opening the account. Their details are available on their website. Any cash remaining on the card, as well as any fees paid to open the account, will be refunded. You also won’t be charged if you cancel after this 14-day period, but you’ll need to do this by contacting customer service.