Coconut vs Tomorrow
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)
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—
79/100
Free tier
Eco-conscious individuals in Germany who want a mobile-first bank account that automatically supports climate projects a
★ Best
💰 Pricing
🆓 Free tier available
Basic account with features like CO2 tracking and climate investments, but no physical card, limited ATM withdrawals, and no interest
Starting at $4 (subscription)
Fee notes:
- Card replacement fee: €10 for standard card, €20 for metal card
- Foreign currency conversion: 1.5% fee
- International transfer (SEPA): free, non-SEPA: €10 flat fee
- ATM withdrawal outside Eurozone: €2 per withdrawal for Future plan (max 3 free per month)
- Account closure fee: none
⚠ Watch for:
- Foreign transaction fee of 1.5% may apply even when paying in a foreign currency
- International ATM withdrawals beyond the included limits incur fees
- Interest rates are variable and may change over time
- Metal card has a higher monthly fee but the interest benefit may not outweigh it for smaller balances
🔧 Features
✓ Free Tier✓ Mobile App✓ Sustainable✓ Co2 Tracking✓ Impact Investing
📋 Assessment
💪 Strengths
- Every account balance automatically funds climate projects, regardless of your spending. This means that simply by keeping your money in the account, you're contributing to reforestation and renewable energy projects. It's a set-and-forget approach that aligns your idle cash with your environmental values.
- Automatic CO₂ tracking on transactions provides a clear, behavioral nudge toward lower-carbon choices. Each purchase is categorized and assigned an estimated carbon footprint, showing you where your biggest emissions come from. The monthly carbon summary helps you set personal reduction goals.
- Impact-linked interest rates reward sustainable usage, aligning financial incentives with environmental impact. By spending at partner businesses or making sustainable purchases, you can unlock higher interest rates on your balance—turning your spending habits into tangible financial benefits.
- A solid feature set for everyday banking: free Mastercard debit card, instant push notifications, spending analytics, and free ATM withdrawals in Germany and the Eurozone. The card is available in a CO₂-neutral variant made from recycled plastic.
- Transparent fee structure with a free Basic plan, making it accessible for those who just want a sustainable bank account without monthly fees. The paid tiers are reasonably priced compared to other premium neobanks.
⚠ Watch out for
- No free tier that also funds climate projects without a monthly fee. The Basic account has no monthly fee, but the climate project funding only kicks in with the paid Zero plan. So if you want to actively support projects, you must pay at least €3/month, which may put off budget-conscious users.
- Only available in Germany and a few other EU countries, limiting adoption for international users. The app is in German only, which can be a barrier for expats or non-native speakers.
- Lacks a physical branch network, which may be a drawback for users who need in-person services like mortgage consultations or complex account issues.
- CO₂ tracking is an estimate based on merchant category, not actual emissions. For example, a small purchase at a large retailer may be over- or under-estimated, which could mislead users who rely on the data for serious carbon accounting.
- The customer support is primarily via email and in-app chat, with no phone support during weekends. Response times can be slower during peak periods, and some users have reported issues with the chat feature in the app.
🎯 Best for
Eco-conscious individuals in Germany who want a mobile-first bank account that automatically supports climate projects and provides detailed carbon footprint tracking.
🚫 Who should skip
Anyone who needs a free bank account, lives outside the EU/Germany, or wants comprehensive business banking features.
📚 Learning curve
Minimal — the mobile app is straightforward, and the main novelty is that CO₂ tracking is automatic, so most users can start managing their finances immediately.
🧑⚖️ Verdict
Tomorrow is an excellent choice for eco-conscious individuals in Germany who want their everyday banking to actively contribute to climate action. It offers a unique mix of automatic carbon tracking, impact-linked interest rates, and transparent pricing. However, if you need in-person branch access
📊 Use Case Suitability
Higher score = better fit. Scores from editorial review.
Use CaseCoconutTomorrow
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
Eco-conscious daily banking—95
Every account automatically funds climate projects and tracks transactions' carb
Carbon footprint tracking for personal spending—90
The built-in CO₂ tracking per transaction gives clear, itemized insight into the
Sustainable investing for beginners—85
Impact investing is integrated into the app, allowing users to start with climat
🧭 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 Tomorrow if...
- You are: Eco-conscious individuals in Germany who want a mobile-first bank account that automatically supports climate projects a
- 👍 Directly funds climate projects from every account balance, regardless of spending.
- 👍 Automatic CO₂ tracking on transactions provides a clear, behavioral nudge toward lower-carbon choice
- 👍 Impact-linked interest rates reward sustainable usage, aligning financial incentives with environmen
- 💰 From $4.35/mo
- ⚠ Trade-off: No free tier — users must pay a monthly fee, though exact pricing is not clearly
❓ 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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