Monzo loot logo

Loot vs Monzo

Loot and Monzo are two big names in digital banking, but what do they offer and which is better?

So-called “challenger banks” are gaining customers rapidly; millions are now using Loot, Monzo, Starling and Revolut.

They offer snazzy apps, real-time spending information, and typically work a bit like your own personal finance assistant – reminding you that you’re close to your budget limit for eating out this week, for example.

Here we’ve analysed two of the big mobile-only banks, side by side.

Digital banking deals

Revolut Revolut
Save £5!

Free card worth £5 from Revolut

Ends

Starling Starling
Award winner

Starling voted best British bank & current account

N26 N26
New!

Get N26 the new bank you'll love to use

Monese Monese
Free card!

Download the Monese app and get your free card

Loot and Monzo at a glance

LootMonzo
NameLootMonzo
Fees and chargesFreeFree
Delivery speed-Between 2-7 working days
PaymentsWorks like with a standard bank app, takes up to 2 hoursPay via bank transfer or send instantly to other Monzo account
UK ATMsFirst two are free then £1 for each withdrawal after thatFree, limited to £400 a day
Spending insightsNot a featureSpending tracker provides a breakown of how much you've spent and where
Overdraft Yes - will be charged
CategoriesUse #LootGoals to put money aside. Create a #LootGoal and save towards it.10+ categories, regularly updated
CASS
Direct debitsNoYes - future payments shown in homefeed
Top upAdd money using a debit card (including Android Pay and Apple Pay). Add money up to 5 times a week up to £250Via bank transfer, standing order, or have salary paid in
Freeze your cardCan pause in app or report card lost/stolenYes: touch of a button in app
AlertsReal time spending notofication and transaction listMonzo's Targets sends notifications to warn if you're spending too fast. Dashboard changes from green to orange to red to indicate overpending.
InterestNoneMarketplace with 8 savings accounts both fixed rate and easy access, £500 minimum deposit.
Savings goalsLoad in your spending per week and get a daily budgetMonzo pots let you put money aside, protected from your daily spending
VisualisationCircle graphic shows how much left to spend in the dayMonzo uses a monthly graph and a pie chart to show the trajectory of your money, and how it is broken down
Foreign ATM withdrawalsTwo free cash withdrawals per month, £1 thereafterNo ATM fees up to £200 a month. 3% charge over £200.
Foreign transactions feeNo feesNo fees
More InfoMore Info

Loot vs Monzo: The verdict

There are some key differences between these two apps; fees stand out as one, but there are others, too.

Fees

Fees are where Loot and Monzo really show their differences.

For those who believe cash is king, Monzo is probably the better bet. Cash machine withdrawals in the UK are totally charge free with Monzo. By contrast, Loot gives you two free withdrawals for the month, then charges £1 after that.

But if you travel a lot and withdraw cash abroad, Loot seems the better option on fees.

Monzo’s 3% charge after an initial fee-free £200 a month could start stacking up. Once again, Loot gives you two free withdrawals then £1 for each cash machine transaction after that.

But for those looking to get out a fair amount of cash each day (big families perhaps), Loot set a £250 daily withdrawal limit.

How they look on your phone

App features

  • Set budgets. Set budgets for the week or month with either. Loot is special in that you can actually set daily budgets.
  • Categories. Loot and Monzo both automatically place your transactions into categories like groceries or eating out, which you set budgets for. The app reminds you if you’re close to overspending.
  • How they help you save. Monzo’s “Pots” and Loot’s “Goals” let you put money aside for a particular saving goal. Perhaps you’ve had an eye on a hot tub for years but you keep frittering away the cash on coffees. Well, these apps could help you.
  • Freeze your card. With either Loot or Monzo you get total control of your card through your app. Think it’s lost but you’re not sure? Freeze it temporarily while you have a look.

Other key differences

  • Monzo offers an overdraft while Loot doesn’t. If you pass Monzo’s “soft” credit check (which doesn’t leave a trace on your credit file), you can get an overdraft of up to £1,000. It charges you 50p every day your overdraft is bigger than £20.
  • Loot doesn’t have a banking licence. This means your money isn’t protected by the Financial Services Compensation Scheme, whereas with Monzo, you’re protected for up to £85,000 if the bank goes bust.
Back to top
Was this content helpful to you? No  Yes

Ask an Expert

You are about to post a question on finder.com:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder.com provides guides and information on a range of products and services. Because our content is not financial advice, we suggest talking with a professional before you make any decision.

By submitting your comment or question, you agree to our Privacy and Cookies Policy and Terms of Use.

Questions and responses on finder.com are not provided, paid for or otherwise endorsed by any bank or brand. These banks and brands are not responsible for ensuring that comments are answered or accurate.
Go to site