Loot bank review

No longer active after entering administration, Loot was a digital current account that wanted to help people manage spending.

Updated

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Loot

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.

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What is Loot?

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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

Pros

  • Easy to manage and track your budgeting while factoring in goals.
  • If you lost your phone you can still gain access to your account via Loot’s web app.
  • Pause and unpause your card at any time.
  • Set up an account in under eight minutes.
  • In-app customer support
  • Fee-free spending abroad

Cons

  • Only the first two ATM withdrawals are free, cost is £1 thereafter.
  • Limits on ATM withdrawals.
  • Limit of £25,000 on balance.
  • No bank branches is less ideal for those who prefer face-to-face customer service.

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.

Data indicated here is updated daily
Name Product Ratings Interest (AER) Arranged overdraft Key benefits Link Representative example
We say
★★★★★
You say
★★★★★
0%
39.9% EAR variable
£125 when you switch
Go to site
Current account switch service guarantee badge
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).
We say
★★★★★
You say
★★★★★
0%
15% EAR variable
Award-winning current account, apply in minutes
Go to site
Current account switch service guarantee badge
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.
We say
★★★★★
You say
★★★★★
0%
39.94% EAR variable
Interest and fee free overdraft
for first four months when you switch
Go to site
Current account switch service guarantee badge
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.
We say
★★★★★
0%
N/A
Guaranteed acceptance plus a credit building feature
Go to site
Account fee of £5.95 per month.
We say
★★★★★
0%
N/A
Guaranteed acceptance
Go to site
Current account switch service guarantee badge
Earn cashback on your purchases when you shop through the ThinkMoney rewards portal
Account fee of £10 per month or £15 per month.
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2 Responses

  1. Default Gravatar
    TraceyMay 9, 2019

    Can i use the Loot card in Bulgaria?

    • Avatarfinder Customer Care
      BellaMay 9, 2019Staff

      Hi Tracey,

      Thanks for your inquiry.

      Yes. As per Loot, you can use your Loot card at millions of shops, hotels, and bars around the world – look out for the Mastercard Acceptance Mark.

      I hope this helps.

      Kind regards,
      Bella

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