Coconut vs SoFi
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—
69/100
Free tier
US consumers who want to replace multiple banking, lending, and investing apps with a single free financial ecosystem, e
★ Best
💰 Pricing
🆓 Free tier available
Free tier includes standard banking, investing, and loan access. Some perks like unlimited ATM fee reimbursement require direct deposit or a qualifying balance.
Fee notes:
- No monthly service fee, no overdraft fee, no insufficient funds fee, no minimum balance fee.
- Out-of-network ATM fees: SoFi does not charge its own fee, but the ATM operator may charge a fee. With direct deposit, SoFi reimburses all domestic ATM fees; without direct deposit, up to $25/month in ATM fee rebates.
- International ATM fees: SoFi does not charge a foreign transaction fee on debit card purchases, but ATM operators may charge a fee. Reimbursement for international ATM fees is only $12/month (with direct deposit) or $0 without direct deposit.
- Foreign transaction fee: 0% on debit card purchases (no currency conversion markup) – but only if using SoFi's debit card; the exchange rate used may have a small markup.
- Wire transfers: $0 for incoming and outgoing domestic wires for SoFi checking accounts (may be free), but international wire fees may apply – need to verify (SoFi does not offer international wires on checking accounts).
⚠ Watch for:
- ATM operator fees: if you use an out-of-network ATM, the operator may charge fees, but SoFi reimburses only if direct deposit is set; otherwise you may incur up to $25/month in reimbursement.
- International ATM fees: reimbursement is capped at $12/month, and you may incur operator fees beyond that.
- Foreign transactions: no fee, but the exchange rate may include a 1% markup despite no explicit fee.
- Wire transfers: international wires are not available on SoFi checking; for domestic wires, there may be fees if you use a different method (e.g., sending via ACH is free).
🔧 Features
✓ Free Tier✓ Mobile App✓ Investing✓ Loans✓ Mortgage✓ Insurance✓ Us Only
📋 Assessment
💪 Strengths
- All-in-one platform: SoFi combines banking, investing, credit card, loans, mortgage, and insurance in one app. This means you can manage virtually all your finances without juggling multiple institutions, and the integration allows for features like viewing your entire net worth in a dashboard, seamless money movement between accounts, and automatic round-ups, which invest or save your spare change.
- Fee-free banking: Checking and savings accounts have no monthly maintenance fees, no minimum balance requirements, and no overdraft fees. This is a significant advantage over traditional banks that commonly charge $10-15 per month or hit you with $35 NSF fees. SoFi also reimburses ATM fees up to a certain limit when you have direct deposit, making it truly fee-friendly.
- Competitive savings rate with direct deposit: When you set up direct deposit, you can earn a high-yield savings APY that is often among the best from neobanks (e.g., around 4.6% APY, though variable). Additionally, you can boost your rate by 0.50% if you maintain a certain monthly direct deposit amount or use the SoFi Plus subscription, but even the standard direct deposit rate is strong. This helps your emergency fund grow faster.
- Early paycheck access: SoFi offers early direct deposit, which lets you receive your paycheck up to two days before your scheduled payday. This can help you avoid living paycheck to paycheck and cover unexpected expenses sooner, a feature that many users appreciate.
- Innovative investing options: SoFi Invest allows you to buy fractional shares of stocks and ETFs, making it easy to start investing with small amounts. You can also set up recurring investments and invest round-up change from your debit card. The platform offers no commission fees on trades, and you can open an IRA with low minimums, which is great for beginners.
⚠ Watch out for
- Direct deposit requirement for high APY: Without setting up direct deposit, the savings APY drops to a much lower rate (currently around 1.2% APY), which is significantly less competitive. You can avoid this with a SoFi Plus subscription (which costs $10/month) but that also requires a qualifying deposit to waive the fee. This could be a downside for users who can't or don't want to use direct deposit.
- No crypto trading: SoFi Invest discontinued crypto trading in 2023, meaning users can no longer buy or sell Bitcoin or other digital assets in the app. This is a drawback for those who want a one-stop shop for all investments, as they'd need a separate exchange.
- No physical branches: SoFi is online-only, so there are no brick-and-mortar branches. This means you can't walk in to speak with a representative, and cash deposits are awkward—you must use Green Dot locations (fees may apply) or link an external bank to transfer cash electronically. This can be a disadvantage for those who frequently handle cash or prefer face-to-face service.
- Cross-selling and product pushes: The app is heavily designed to promote other SoFi products, such as loans, credit cards, and insurance. This can feel intrusive, especially when you're trying to do simple banking tasks. Not all users appreciate the constant upsell.
- Customer support not 24/7: While SoFi offers chat and email support, phone support is available only during specific hours (e.g., 7am-midnight ET). Response times vary, and some users report delays during peak periods. For a platform that handles critical banking and investment needs, some users may find this limitation frustrating.
🎯 Best for
US consumers who want to replace multiple banking, lending, and investing apps with a single free financial ecosystem, especially if they receive regular direct deposits.
🚫 Who should skip
People who want physical branch banking, crypto trading, or a stock broker with complex trading tools should skip SoFi and go with a traditional bank and a dedicated broker.
📚 Learning curve
Minimal — consumer-friendly mobile UI with separate tabs for Banking, Invest, Loans, and Insurance, though you'll need to spend a few minutes setting up direct deposit and exploring the product bundles.
🧑⚖️ Verdict
SoFi is ideal for digitally-savvy users who want to consolidate their banking, investing, and lending in one fee-free app, and are willing to set up direct deposit to unlock the best rates. It's not for those who need physical branches, cash handling, or crypto trading. Bottom line: If you're lookin
📊 Use Case Suitability
Higher score = better fit. Scores from editorial review.
Use CaseCoconutSoFi
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
Consolidating personal finances into one app—95
SoFi deliberately spans bank accounts, investing, loans, credit cards, and insur
Building an emergency fund with a high-yield savings account—88
With direct deposit, the checking and savings accounts pay a competitive APY tha
Refinancing student loans or taking a personal loan—92
SoFi is one of the best-known student loan refinancers and personal loan provide
🧭 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 SoFi if...
- You are: US consumers who want to replace multiple banking, lending, and investing apps with a single free financial ecosystem, e
- 👍 Truly all-in-one platform: checking/savings, investing, credit card, loan refinancing, mortgage, and
- 👍 No monthly maintenance fees, no minimum balance, and no overdraft fees on banking accounts, which is
- 👍 When you set up direct deposit, SoFi's savings APY is often among the highest from neobanks, plus yo
- 💰 Free tier available
- ⚠ Trade-off: You need to set up direct deposit to get the best savings APY; otherwise the rat
❓ 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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