Coconut vs Pleo
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—
65/100
Free tier
European SMEs and mid-market companies that want to automate expense reporting, control employee card spending, and simp
★ Best
💰 Pricing
🆓 Free tier available
Standard plan is free, but only for companies with fewer than 25 employees and includes limited features.
Starting at 115 Kč (hybrid)
Fee notes:
- FX markup: 0.5% above interbank rate on Standard, 0.2% on Premium, 0% on Metal for major currencies
- International ATM withdrawals: 3 free per month on Standard, then 2.5% fee (minimum €2.50)
- Domestic ATM withdrawals: free up to 3 per month on Standard, then 2.5% fee
- Card replacement fee: €6.50 for standard card, €19 for metal card
- International transfer fee: 0.2% (min €1) for SWIFT transfers
⚠ Watch for:
- ATM withdrawal fees after the monthly limit (2.5% + minimum €2.50)
- Receipt scrutiny: non-compliant expenses may incur a €15 processing fee
- European bank transfer for non-EEA currencies has a 0.2% fee
- Account closure fee of €29 if closed within first 12 months
🔧 Features
✓ Free Tier✓ Business Only✓ Virtual Cards✓ Receipt Capture✓ Accounting Integration
📋 Assessment
💪 Strengths
- Real-time spend visibility: Pleo sends instant notifications for every transaction, while its dashboard provides a live view of all company spending. This allows finance teams to catch unauthorized or unusual expenses immediately, preventing budget overruns and fraud. For finance managers, this real-time insight is invaluable, turning expense monitoring from a monthly pain into a daily, proactive control.
- Automatic receipt capture with OCR: The mobile app uses OCR to extract receipt data and automatically matches it to the corresponding transaction—often without any user intervention. This eliminates the paper trail and manual data entry, reducing the time spent on expense reporting by up to 90% for frequent spenders. The matching algorithm is remarkably accurate, and any exceptions are flagged for easy resolution.
- Seamless accounting integrations: Pleo integrates natively with Xero, QuickBooks, and Sage, automatically syncing transactions and receipts directly into your accounting system. This near-automatic reconciliation keeps books up-to-date without manual effort, and the integrations are reliable and configurable, with options for categorization and tax handling. For finance teams, this means month-end close is faster and more accurate.
- Customizable spending controls: You can set per-card limits, merchant restrictions, and approval workflows, giving you granular control over employee spending. Budgets can be set at team, project, or individual level, with real-time alerts when approaching limits. This is particularly useful for managing external contractors or temporary staff, ensuring they spend within pre-agreed boundaries.
- Smart company cards with virtual and physical options: Pleo issues both physical cards (contactless, with a distinctive design) and virtual cards that can be created instantly and used for online purchases. Virtual cards are disposable and can be locked to specific merchants, reducing fraud risk. Employees can manage their cards via the mobile app, and finance can see who spent what, where, and on what, in real time.
⚠ Watch out for
- Per-user pricing adds up: Pleo charges per active user per month, currently starting at $5 per user for the basic plan. While this seems affordable initially, it quickly becomes expensive as you add team members—especially if you need to issue cards to many external contractors or part-time staff, who may only make occasional purchases. For a company with 50 users, the monthly cost can exceed $250 before adding premium features.
- No free tier: Unlike some competitors (e.g., specific neobanks like Revolut Business or N26 Business), Pleo does not offer a free plan. This makes it inaccessible for very small businesses or freelancers with minimal expense activity, who might pay a small monthly fee but lack a way to try the platform without committing.
- Currency conversion fees: Transactions made outside EUR/GBP incur a conversion fee of around 1.5%. For teams that frequently purchase from non-European suppliers or travel internationally, these fees can accumulate, adding a hidden cost that isn't obvious on the pricing page. Alternatives like Wise Business offer interbank-rate conversions for a lower markup.
- Relative complexity for small teams: While Pleo automates a lot, setting up approval flows and budgets requires time and configuration. For a three-person startup where expenses are rare and simple, the learning curve and ongoing management might be overkill, making it less 'plug-and-play' than advertised. Some users report that configuring categories and rules takes a few hours to get right.
- Support can be hit-or-miss: Pleo's support is primarily via in-app chat or email. While they have a comprehensive help center, response times can vary, and phone support is not offered. For urgent issues—like a blocked card during a business trip—the lack of immediate phone support can be frustrating.
🎯 Best for
European SMEs and mid-market companies that want to automate expense reporting, control employee card spending, and simplify accounting reconciliation.
🚫 Who should skip
Businesses that need a full corporate bank account with credit or lending capabilities, or small teams on a tight budget who can sync expenses manually.
📚 Learning curve
Moderate — the core card issuing and transaction tracking is intuitive, but setting up custom rules, integrations, and approval workflows requires some initial configuration and admin training.
🧑⚖️ Verdict
Pleo is an excellent spend management solution for growing and mid-sized companies in Europe that want to eliminate manual expense reporting and gain real-time control. If you're a small startup with less than 5 users and minimal spending, the per-user cost and lack of a free tier may give you pause
📊 Use Case Suitability
Higher score = better fit. Scores from editorial review.
Use CaseCoconutPleo
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
Expense Management for Growing SaaS Companies—95
Pleo automates receipt capture, enforces spending policies, and syncs with accou
Remote Team Purchasing & Procurement—90
Virtual cards can be issued instantly to remote employees or for specific subscr
Project-Based Budget Tracking—78
Pleo allows spending limits and custom categories, but project-level reporting i
🧭 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 Pleo if...
- You are: European SMEs and mid-market companies that want to automate expense reporting, control employee card spending, and simp
- 👍 Real-time spend visibility with instant notifications on every transaction, helping finance teams ca
- 👍 Automatic receipt capture via OCR—most receipts are matched to transactions without manual effort, s
- 👍 Seamless integration with popular accounting tools like Xero, QuickBooks, and Sage, making reconcili
- 💰 From $5/mo
- ⚠ Trade-off: Pleo is pricing per user per month, which can get expensive as your team grows—e
❓ 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.
🔗 More Neobanks Comparisons
🔀 Explore Alternatives
📧 Save this comparison
We'll email you a link to this comparison. No spam.