Coconut vs NuBank
Side-by-side comparison — pricing, features, ratings, use cases. Find which Neobanks fits you best.
🔍 Independently researched ·
📊 Data-driven
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—
63/100
Free tier
Individuals in Brazil, Mexico, or Colombia who want a free, mobile-first personal bank account and credit card with simp
★ Best
💰 Pricing
🆓 Free tier available
Free tier includes full digital account, debit card, Pix transfers, and credit card with no annual fee (if approved). Cashback program (Nubank Rewards) is optional and requires a separate monthly fee of R$19.00 (approximately $3.80 USD). International transactions and withdrawals are subject to fees.
Fee notes:
- No monthly maintenance fee for Standard account.
- Nubank Rewards cashback program: R$19.00 per month (approx. $3.80 USD).
- International ATM withdrawal fee: R$50.00 per withdrawal (approx. $10.00 USD) in Brazil; fees may vary for Mexico and Colombia.
- International debit/credit card transactions: IOF tax of 4.38% on foreign currency transactions (Brazilian regulation) plus a fixed fee of R$50.00 (approx. $10.00 USD) for international ATM withdrawals; no markup on exchange rate but IOF applies.
- Card replacement fee: Free for standard replacement; express delivery fee may apply (e.g., R$30.00 approx. $6.00 USD).
⚠ Watch for:
- IOF tax of 4.38% on international purchases (Brazilian regulation) is often overlooked.
- International ATM withdrawal fee of R$50.00 (approx. $10.00 USD) per transaction.
- Nubank Rewards program is not free; monthly fee of R$19.00 (approx. $3.80 USD) is charged for the cashback benefit.
- No-fee ATM withdrawals are limited to specific networks; out-of-network ATMs may charge additional fees.
🔧 Features
✓ Free Tier✓ Mobile App✓ Credit Card✓ Personal Loans✓ Crypto Support✓ Latam Focus
📋 Assessment
💪 Strengths
- No maintenance fees: The standard digital account and credit card have zero monthly fees, which is a significant advantage over traditional banks in Latin America that often charge for basic services. This can save users a substantial amount annually, making Nubank an affordable option for everyday banking.
- Excellent mobile experience: The app is highly rated for its intuitive design and smooth performance. Features like instant purchase notifications, one-tap card locking, and easy self-service controls put the user in charge. The chat-based support is integrated directly into the app, so help is never far away, and you can manage everything from your phone without visiting a branch.
- Full credit card control: Users can monitor every transaction, split purchases into installments, and generate virtual cards for added security during online shopping. This flexibility is particularly valuable in markets where installment payments are a common practice, giving users more control over their cash flow.
- Integrated financial ecosystem: Beyond banking, Nubank offers personal loans, cryptocurrency trading (available in Brazil), and insurance products. This consolidation means you can handle multiple financial needs in one app, avoiding the hassle of managing several accounts with different providers. The crypto trading feature is simple and accessible for beginners.
- Strong brand trust: Nubank is a well-established, publicly traded company with over 100 million customers. This scale brings a level of stability and credibility that is reassuring for users, and the company's track record of innovation suggests continued improvements and new features over time.
⚠ Watch out for
- Geographic limitations: Nubank is only available in Brazil, Mexico, and Colombia. If you live outside these countries or travel frequently, you'll need to find another bank. This limits its appeal to a specific regional audience, and there are no signs of imminent expansion to the U.S. or Europe.
- Support is mostly chatbot-based: Customer service is primarily handled through an in-app chat, with limited phone support in most regions. This can be convenient for simple queries, but for complex issues like disputes or account freezes, the lack of human contact can be a major frustration. The bot often loops through generic responses before connecting to a human agent.
- ATM withdrawal fees: While the account is free, there's a monthly limit on free ATM withdrawals. Exceeding that limit incurs charges, which can catch users off guard, especially if they rely on cash withdrawals. It's not a deal-breaker, but it's an extra cost to monitor.
- No physical branches: As a digital bank, Nubank has no physical branches. This is fine for most digital natives, but older or less tech-savvy individuals may miss the ability to walk into a branch for face-to-face assistance. Also, cash deposits require finding partner locations, which may not be as convenient as a bank branch.
- Credit card availability: The no-fee credit card is not automatically given to all applicants; it depends on credit analysis. Some users may be offered a prepaid card or have to wait for approval, which can be disappointing if you're seeking a credit card immediately.
🎯 Best for
Individuals in Brazil, Mexico, or Colombia who want a free, mobile-first personal bank account and credit card with simple, transparent fees and integrated crypto access.
🚫 Who should skip
Businesses, frequent international travelers, or people outside Latin America who need a bank with cross-border banking, robust SME features, or global account access.
📚 Learning curve
Minimal — the app is designed for mass-market use and guides you through account opening, card management, and payments in a straightforward mobile interface.
🧑⚖️ Verdict
Nubank is an excellent digital bank for anyone in Brazil, Mexico, or Colombia who wants a fee-free, modern banking experience with a stellar mobile app. It's particularly well-suited for tech-savvy individuals who handle their finances online and want control over their card and spending. However, i
📊 Use Case Suitability
Higher score = better fit. Scores from editorial review.
Use CaseCoconutNuBank
Tracking Tax Liability for Freelance Income98—
This is Coconut's core feature — every transaction is categorised and tax is est
Landlord Rent and Expense Management92—
Coconut includes property-specific expense categories and tax calculations that
Collaborating with an Accountant90—
The direct accountant connect means both you and your accountant can see the sam
Sole Trader Cash Flow Oversight80—
Open banking integration gives a real-time view of linked accounts, though it fo
Simple Expense Categorisation for Self-Employed85—
Coconut's intuitive expense categories and receipt capture make day-to-day bookk
Everyday Personal Banking in Latin America—95
NuBank is built for the region, offering fee-free accounts, instant payments (Pi
No-Fee Credit Card Management—90
The app provides full control over the credit card, including invoicing, install
Cryptocurrency Investing (especially in Brazil)—70
NuBank offers Bitcoin and Ethereum trading directly in the app, making it conven
🧭 Which One Should You Pick?
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
Choose NuBank if...
- You are: Individuals in Brazil, Mexico, or Colombia who want a free, mobile-first personal bank account and credit card with simp
- 👍 No monthly maintenance fees for the standard digital account and credit card, which is rare among tr
- 👍 Highly rated mobile app with intuitive navigation, instant purchase notifications, card locking, and
- 👍 Credit card allows full invoice control, installment splitting, and virtual cards for added security
- 💰 Free tier available
- ⚠ Trade-off: Limited to Brazil, Mexico, and Colombia; not available in the U.S., Europe, or o
❓ Frequently Asked Questions
Is Coconut a full bank?
No, Coconut is a fintech platform that provides an e-money account via an appointed bank partner (ClearBank). Your funds are safeguarded, but the account is not covered by the Financial Services Compensation Scheme (FSCS) in the same way as a high-street bank account.
Is Coconut really free?
There is a genuinely free tier with no monthly account fee. Some optional features or premium plans may cost extra, so it's worth reviewing the latest pricing before signing up.
How does the auto tax calculation work?
Coconut categorises each transaction and uses your income, expenses, and known tax rates to estimate tax owed in near real time. It's a practical guide to help you set aside money for tax, not a substitute for professional tax advice.
Can I use Coconut if I have a limited company?
No. Coconut is built specifically for UK sole traders, freelancers, and landlords. Limited companies and partnerships are not supported.
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