Coconut review

We take a closer look at the current account aimed at freelancers and the self-employed as well as small business owners.

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Coconut

What is Coconut?

Coconut Bank is a fresh face in the financial technology market, hoping to make money management easier. Coconut is all about providing a useful and innovative tool for tracking business finances.

Coconut aims to make your business finances easier and through doing so “free you up to do more of the work you love”. It does this by relieving you of some of the stress that comes with your tax returns and expenses – estimating the tax you’ll owe, documenting paid or unpaid invoices and tracking expenses.

Alongside these features Coconut works as a business current account, giving you control over the money you earn through your trade.

Tide

Try Tide as an alternative to Coconut

  • Free business Mastercard
  • No foreign transaction fees
  • In-app support
  • Invoice directly from your Tide app
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How does Coconut work?

Apart from the card you are sent in the post after you register, Coconut Bank works through an app on your phone.

Rather than relying on bells and whistles, Coconut delivers an app which works to make things as simple as possible for the user. Displaying your earnings front-and-centre, Coconut encourages you to explore the app from there.

Along with the introductory screen Coconut Bank provides a number of features including:

  • Taxes: See your earnings and the estimated amount of tax you will be required to pay at the end of the financial year.
  • Payments: Keep a record of your paid and unpaid invoices and how much they’re worth.
  • Activity: A record of your spending. Not only a way to keep an eye on where your money’s going, but also necessary when tax returns are due
  • Card: Activate and deactivate your card from here.
  • More: Get a rundown of the FAQs, change your tariff and get more out of your Coconut account.

Coconut’s fees and key features

Coconut Bank offers a free or pay-monthly account:

“Start”

  • No monthly fee.
  • Automated bookkeeping.
  • Receipt capture.
  • Fee for cash withdrawals.
  • Tax estimation.
  • Limited number of invoices.
  • Commission charge on non-sterling tranactions.

“Grow”

  • £5 monthly fee.
  • Automated bookkeeping.
  • Receipt capture.
  • Fee for cash withdrawals.
  • Tax estimation.
  • Unlimited invoices.
  • No charge on non-sterling tranactions.

Is Coconut safe?

Security is high on Coconut’s priority list, and Coconut works hard to make itself as safe as possible. Your account is kept behind a two-step authentication process and your password is encrypted using industry standard encryption.

Coconut Bank regularly scans for threats and backs up data to make sure it’s always safe.

Pros and cons of Coconut

  • Open an account quickly and easily.
  • Card sent to you upon registration.
  • A record of your spending helps you save money. Additionally this feature is a great help when you declare your income at the end of the financial year.
  • The tax page helps calculate how much tax you will owe at the end of the financial year.
  • Safe and secure.
  • Paid account offers many useful features to help your business grow.
  • Registered with the FCA.
  • Monthly subscription fee for premium facilities.
  • Fee on cash withdrawals.
  • No credit facility.
  • You’ll still need a traditional bank account for most of your financial needs.

Platforms similar to Coconut

Updated April 4th, 2020
Name Product Interest Monthly fee Overdraft
Tide
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Amaiz
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ANNA
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Starling Business Account
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Revolut for Business
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The Co-operative Bank Business Directplus Current Account
The Co-operative Bank Business Directplus Current Account
0%
Free everyday banking* for 30 months subject to monthly limits
Planned overdraft available subject to acceptance
*Only applicable for new Co-operative Bank customers maintaining a credit balance of £1000+. Monthly limits for cash deposits and cheques. £7 monthly fee applies after 30 months. Charges apply for special services e.g. foreign and CHAPS payments. Subject to status & eligibility. T&Cs apply.
TSB business banking
TSB business banking
0%
Up to 25 months* free day to day banking
Planned overdraft available subject to acceptance
*25 months free when keeping your account within agreed limits. £5 fee applies after this period, but will be waived if you maintain an average monthly balance of £10,000.
HSBC Business Current Account for Startups
0% AER
£6.50 per month
Subject to status
T&Cs Apply
Free banking for 18 months for start-ups with turnover below £2m, followed by a 12 months fixed price period of £6.50 per month . T&Cs apply. Interest Rate refers to in credit balances.
HSBC Business Current Account for Switchers
0% AER
£6.50 per month
Subject to status
T&Cs Apply
Free banking for 12 months for switchers with turnover below £2m, followed by a 12 months fixed price period of £6.50 per month . T&Cs apply. Interest Rate refers to in credit balances.
Cashplus Business
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No monthly account management fees, annual account fee is £69
Up to £2,000 of credit, using it costs £1.50 a day
FairFX business expense card
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£50 + VAT per year
No overdraft available
Exclusive to Finder Offer: Annual fee waived for first year + first 10 cards free
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