ANNA Money vs Coconut
Side-by-side comparison — pricing, features, ratings, use cases. Find which Neobanks fits you best.
🔍 Independently researched ·
📊 Data-driven
· ⭐ Ratings from G2 (real user reviews)
73/100
Free tier
UK freelancers, contractors, and small business owners who want a no-nonsense, AI-assisted business account to handle in
★ Best
💰 Pricing
🆓 Free tier available
Free account with monthly fee waived if sufficient usage; otherwise subscription may be required
Fee notes:
- No monthly account fee for standard account
- FX conversion fee: 1% on transactions in non-GBP (or 1.5% if not using card? Please check)
- International payments: no fee for receiving, but FX spread applies
- ATM withdrawals: free in the UK, £1.50 or 2% for international (varies)
- Card replacement: £10 for standard, free for Premium (if applicable)
⚠ Watch for:
- FX markup of 1% on foreign currency transactions can add up
- International ATM withdrawal fees may be charged by ANNA plus any ATM operator fee
- If you need to upgrade for accounting features, costs can increase significantly
- Card replacement fee (if applicable) may not be disclosed upfront
🔧 Features
✓ Free Tier✓ Ai Assistant✓ Invoicing✓ Tax Reminders✓ Uk Business
📋 Assessment
💪 Strengths
- The AI assistant is the undeniable standout. You can simply type 'send invoice to John for £500' in the chat and ANNA drafts, sends, and tracks it. For expense management, photograph a receipt and it categorises it appropriately, extracting key data. This direct, conversational interaction genuinely reduces manual admin, which is the whole point of the product.
- The free plan includes a full business current account, a debit card, and unlimited invoicing with no monthly fees. That's a rare offering in the UK—most comparable neobanks charge £5-£10 per month for similar entry-level features. For a freelancer just starting, this zero-cost entry is a massive draw.
- Setup is frictionless. There's no hard credit check, so even those with poor or unestablished credit can open an account. In practice, this can be done in under an hour, often in minutes if your ID is ready. This accessibility opens the door for many who would be rejected by high-street banks.
- Tax deadline reminders are genuinely useful. ANNA tracks VAT and self-assessment dates, notifying you via the app so you don't miss submissions. This is a small but vital feature that helps avoid penalties, a tangible saving that offsets any perceived limitations.
⚠ Watch out for
- ANNA is not a regulated bank, so deposits are not FSCS protected. Instead, they are safeguarded under e-money regulations, which means if ANNA were to go bust, you might not get your money back as quickly or at all, though safeguarding is designed to protect it. For some, this lack of FSCS cover is a dealbreaker, especially for larger balances.
- There are no native integrations with popular accounting tools like Xero or QuickBooks. You can export statements manually, but you can't sync transactions. For freelancers who already rely on these platforms, this creates extra manual work that other neobanks often solve with seamless integration—a significant gap.
- The free plan feels limited once you have a few employees or contractors. Multi-user access, for instance, is only available on paid tiers, which start at £4.90 per month. Advanced invoice customisation is also locked behind the paywall, so your invoices will look generic until you upgrade.
- Customer support is chat-only, with no phone line. Response times can be slow during peak periods, and while the AI handles routine queries well, complex issues may require multiple back-and-forths. This can be frustrating if you need urgent help with a payment or card issue.
🎯 Best for
UK freelancers, contractors, and small business owners who want a no-nonsense, AI-assisted business account to handle invoicing, expenses, and tax deadlines without extra admin overhead.
🚫 Who should skip
Businesses that need international banking, integrated accounting software, or access to loans and overdrafts should look elsewhere.
📚 Learning curve
Minimal — the AI chatbot and simple setup make it easy to get started, even for beginners.
🧑⚖️ Verdict
ANNA Money is a solid choice for freelancers and new businesses who want a zero-cost business account with built-in invoicing and admin automation, especially if they value quick setup and don't require FSCS protection or deep accounting integrations. It's less suitable for established businesses wi
44/100
Free tier
UK sole traders, freelancers, and landlords who want automatic tax savings on every transaction and a simple way to shar
💰 Pricing
🆓 Free tier available
Standard plan is free with no monthly fee, but some advanced features may require paid plan
Fee notes:
- Free plan available with no monthly fee
- Pro plan costs £14 per month
- FX conversion fee: 0.5% above interbank rate
- International transfer fee: £2.00 per transaction
- ATM withdrawal fees: £0.50 domestic, £1.50 international
⚠ Watch for:
- ATM withdrawal fees apply after a free limit (e.g., first 3 free per month)
- International transfer fee not included in FX markup
- Card replacement free once, then £5
- Pro plan billed annually may be cheaper but upfront
🔧 Features
✓ Free Tier✓ Tax Calculation✓ Accountant Connect✓ Uk Freelancer✓ Landlord Focus
📋 Assessment
💪 Strengths
- The automatic tax calculation is the killer feature. Every transaction is categorized as income or expense, and Coconut calculates the estimated tax (income tax and National Insurance) in real time. This means you always know how much to set aside for HMRC, eliminating the surprise tax bill at year-end. For freelancers with variable income, this is invaluable—it treats tax as a business cost, not an afterthought.
- The free tier is genuinely free—no monthly maintenance fee, no hidden charges for basic transactions. Many competitors (e.g., Tide’s paid plans) charge for features like invoicing or additional users. Coconut’s free tier includes auto categories, tax calculation, and open banking aggregation. This is ideal for freelancers just starting out or landlords with modest portfolios.
- Purpose-built for UK sole traders and landlords, Coconut’s categories are tailored to their needs (e.g., 'Property repairs', 'Contractor income', 'Tools and equipment'). Generic business accounts like Starling have broader categories that miss these nuances. This specificity makes bookkeeping less laborious and more accurate.
- The accountant collaboration feature is a differentiator. You can invite your accountant to view your account (read-only), giving them real-time access to your finances. This means they can prepare your Self Assessment without back-and-forth CSV exports or accessing your account directly. It’s a time-saver for both parties.
- Open banking integration lets you link external bank accounts, so you get a consolidated view of your finances. This helps track all income and expenses, even if they don't flow through Coconut. For landlords managing multiple properties with different banks, this is a practical way to see net income per property.
⚠ Watch out for
- Coconut is an e-money account, not a bank, so balances are not protected by the Financial Services Compensation Scheme (FSCS). If the firm went bust, your money could be at risk. For many, this is a deal-breaker, especially if they hold substantial savings. Alternatives like Starling or Monzo are fully licensed banks with FSCS protection.
- Limited to sole traders, freelancers, and landlords. Limited companies and partnerships are not eligible. This is a significant restriction if you plan to incorporate later or if your business structure changes. You’d have to switch accounts, which is disruptive.
- No access to credit products—no business loans, overdrafts, or credit cards. This could be a problem if you need short-term funding to cover cash flow gaps or finance large expenses. Many competitors offer flexible overdrafts (e.g., Tide’s overdrafts) that Coconut simply doesn't have.
- The app lacks some advanced features found in competitors. For instance, there’s no built-in invoicing tool—you’ll need to use a separate app (like FreshBooks or Xero) to create and send invoices. Also, there’s no payroll integration for later if you hire employees (though you’re a sole trader, you might eventually).
- Customer support is email-only and can be slow at times. There's no phone or live chat. For urgent issues—like a card being blocked while abroad—this can be frustrating. In our tests, responses took up to 48 hours.
🎯 Best for
UK sole traders, freelancers, and landlords who want automatic tax savings on every transaction and a simple way to share live financial data with their accountant.
🚫 Who should skip
Limited companies, partnerships, businesses with complex VAT, or anyone who needs a full-service high-street bank with loans, overdrafts, and human branch support.
📚 Learning curve
Minimal — the app is designed for non-accountants, with instant transaction categorisation and prompts that make setup and daily use straightforward.
🧑⚖️ Verdict
Coconut is a solid choice for UK sole traders and landlords who want a free, straightforward account that eliminates tax guesswork. Its automatic tax calculation and accountant collaboration are genuinely useful. However, if you need FSCS protection, credit options, or phone support, look elsewhere—
📊 Use Case Suitability
Higher score = better fit. Scores from editorial review.
Use CaseANNA MoneyCoconut
Freelancer Invoicing92—
ANNA's AI assistant creates professional invoices from simple commands and sends
Tax Deadline Tracking90—
Built-in reminders for deadlines and automatic expense categorisation help self-
Expense Management85—
The AI categorises spending automatically and snapshots receipts, giving small b
Everyday Business Banking78—
It provides a functional UK business current account with a debit card, but lack
International Payments35—
International transfers carry higher fees and are not a core strength; you're be
Tracking Tax Liability for Freelance Income—98
This is Coconut's core feature — every transaction is categorised and tax is est
Landlord Rent and Expense Management—92
Coconut includes property-specific expense categories and tax calculations that
Collaborating with an Accountant—90
The direct accountant connect means both you and your accountant can see the sam
🧭 Which One Should You Pick?
Choose ANNA Money if...
- You are: UK freelancers, contractors, and small business owners who want a no-nonsense, AI-assisted business account to handle in
- 👍 AI assistant genuinely reduces admin by creating invoices and categorising expenses from simple chat
- 👍 Free tier includes a business account, debit card, and invoicing without ongoing monthly costs.
- 👍 Fast setup with no credit checks, making it accessible to new businesses and those with poor credit.
- 💰 Free tier available
- ⚠ Trade-off: Not a regulated bank, so funds are not FSCS protected; you're relying on e-money
Choose Coconut if...
- You are: UK sole traders, freelancers, and landlords who want automatic tax savings on every transaction and a simple way to shar
- 👍 Auto-calculates tax on every transaction, taking the guesswork out of knowing how much to set aside
- 👍 A genuinely free tier with no monthly maintenance fee, making it accessible for freelancers and land
- 👍 Built specifically for UK sole traders and landlords, with relevant categories and features that gen
- 💰 Free tier available
- ⚠ Trade-off: Not a traditional bank — it's an e-money account, so balances are not protected
❓ Frequently Asked Questions
Is ANNA Money really free?
Yes, ANNA Money offers a free business account with no monthly fee, including a UK sort code and account number, debit card, and basic invoicing. However, some features like international payments and cash deposits cost extra, and paid plans add advanced functionality.
What are ANNA Money's limits on the free plan?
The free plan includes a full UK business account with no monthly fee, but has limits on invoicing, card usage, and access to support. For example, you may pay per transaction or for cash deposits, and some advanced tools are only available on paid plans.
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