Dive deeper: Best high interest savings accounts in Canada
KOHO review: Is it worth it?
Earn interest on your savings and cash back on your purchases, but watch out for fees and other drawbacks.
KOHO is a Canadian fintech that offers a spending and savings account, a prepaid Mastercard, a credit building service and interest-free cash advances. It’s one of several providers shaking up the Canadian banking industry by offering competitive financial services that can be managed through a user-friendly app.
But is KOHO a bank, how do KOHO accounts work and how does it stack up against other alternative banking options? Keep reading to find out.
KOHO accounts and services
- KOHO Essential
- KOHO Extra
- KOHO Everything
- Credit Building by KOHO
- KOHO Cover
What is KOHO Financial?
KOHO Financial is a financial technology company that’s based in Vancouver. Founded in 2014, it offers a regularly expanding range of financial products and services designed to make it easier to manage your money.
You can get started with KOHO by opening an account. A KOHO account is best described as a hybrid chequing and savings account—it supports unlimited daily transactions, offers a high interest rate on your entire balance and comes with a reloadable prepaid Mastercard that pays cash back on purchases.
KOHO also offers a credit building service to help you boost your credit score and interest-free cash advances to help you cover unexpected expenses through KOHO Cover.
Is KOHO a bank?
No, KOHO is a financial technology company, not a bank. It partners with federally regulated bank Peoples Trust to offer cash deposits.
However, it’s worth noting that, in October 2024, KOHO announced it had secured $190 million in additional capital and that one of the uses of this funding would be supporting KOHO’s efforts to secure a Schedule 1 bank licence.
How do KOHO accounts work?
KOHO accounts offer the following key features:
- Unlimited transactions
- Free e-Transfers
- Interest paid on your balance
- Prepaid reloadable Mastercard and virtual card
- Cash back on purchases
- Free credit score monitoring
There are three account plans to choose from—Essential, Extra and Everything. The Essential plan is available for free when you meet deposit requirements, but Extra and Everything come with a fee of $18 or $22 (respectively) per month when billed yearly. The higher the monthly fee, the more perks the plan offers and the higher the savings interest rate and cash back earn rates.
Let’s take a closer look at how these plans work.
Is KOHO safe?
Yes, KOHO is safe to use. Even though KOHO itself is not CDIC insured, it is partnered with Peoples Trust, a federally regulated bank that holds the funds you deposit onto your KOHO card.
KOHO account cash deposits that earn interest are covered by CDIC insurance. Note that you’ll need to opt in to the Earn Interest feature to start making money from your balance.
You’re also protected against unauthorized use of your KOHO card by Mastercard’s Zero Liability policy, while KOHO also offers features like 24/7 security monitoring and 2-factor authentication.
Does KOHO offer credit cards?
No, KOHO does not offer traditional credit cards, but it offers a prepaid card instead.
If you’re shopping for a credit card that offers cash back rewards in Canada, you might want to consider a card from one of KOHO’s digital banking competitors. Examples include:
- The Simplii Financial Cash Back Visa Card
- The Tangerine Money-Back Credit Card
- The Tangerine World Mastercard
Is KOHO a credit card?
No, KOHO is a reloadable prepaid Mastercard that you can use to pay in-store and online using your own money. Rather than spending with credit, you need to load funds onto the card before using it to pay for purchases.
However, like a credit card, the KOHO Mastercard rewards you with cash back on your spending.
How does KOHO credit building work?
Credit Building by KOHO is designed to help people with limited credit history or bad credit improve their credit scores. Here’s how it works.
You open a secured or unsecured line of credit using either your own money or by borrowing from KOHO. KOHO then sets aside a portion of your credit line each month and reports it to the Equifax credit bureau as an on-time repayment.
There are no credit checks required to apply, and you can check your credit score any time. KOHO claims that users report a 22-point increase in their scores in the first three months of using Credit Building.
Does KOHO offer loans and lines of credit?
Yes, it does—but it doesn’t offer the conventional range of personal loans and lines of credit you’d expect from a traditional bank.
In terms of lines of credit, there are two products to choose from:
- Credit Building by KOHO, the line of credit outlined above.
- A $1,000-$15,000 KOHO Line of Credit provided by online lender Fora. As of January 2025, this product is still listed on the KOHO website as “coming soon.”
But if you’re searching for a small loan, you might want to check out KOHO Cover. This feature provides a cash advance of up to $250 to help you cover unexpected expenses.
There are no credit checks to apply, there’s no interest on the money you borrow and you can access the money instantly through the KOHO app. However, there’s a monthly Cover subscription fee on top of whatever KOHO monthly plan fee already applies to your account (if any). Find out more in our detailed KOHO Cover review.
KOHO isn’t the only Canadian provider that offers small, interest-free cash advances. Nyble and Bree both offer interest-free cash advances of $250 and $750 respectively. Check out our Nyble vs Bree vs KOHO comparison to see how they stack up against each other.
How does the KOHO app work?
It’s easy to manage your KOHO account through the KOHO mobile app. Available for iOS and Android devices, the app offers a smooth and seamless user experience that has seen it pick up more than its fair share of five-star reviews.
You can use the app to check your balance, send e-Transfers, pay bills, check your cash back rewards and sign up for features like Credit Building and KOHO Cover.
It also provides easy access to a range of other features to help you manage your money, including:
- RoundUps. This feature lets you choose to have every KOHO card purchase you make rounded up to the nearest $1, $2, $5 or $10. The amount rounded up is then set aside in your savings to be cashed out once you’ve reached your goal.
- Savings Goals. This feature allows you to set a specific savings goal and the date by which you wish to achieve it, then it automatically creates a savings plan.
- Vaults. You can set aside money in a Vault to create an emergency fund. The money in your Vault is kept separate so you can’t accidentally spend it.
Unfortunately, the app doesn’t support mobile cheque deposits, so you’ll need to consider other account providers if that particular feature is a must-have for you.
Dive deeper: Apps like KOHO
Summary of KOHO reviews and ratings
The KOHO app has picked up tens of thousands of five-star ratings from users, so it’s safe to say this user-friendly app has been well received. Unfortunately, customer reviews on Trustpilot don’t quite paint the same rosy picture.
There are some positive reviews for KOHO, with some users pointing to the easy-to-use app, high savings interest rate, cash back perks and their improved credit scores as reasons to recommend KOHO.
But with an average rating of 1.4/5 on Trustpilot, KOHO has also picked up plenty of negative reviews. Common complaints include customers getting locked out of their accounts and poor customer service.
| Site | KOHO reviews |
|---|---|
| Apple App Store |
4.8 –
★★★★★ 82K reviews |
| Google Play |
4.7 –
★★★★★ 72K reviews |
| Trustpilot | 1.4/5 based on 449 KOHO reviews |
Does KOHO offer a debit card?
No, KOHO doesn’t offer a debit card. But the KOHO prepaid Mastercard works similarly to a debit card—you spend your own money rather than buying with credit, but you’ll need to load money onto the card first. You can use the card to withdraw cash from an ATM and pay in-store and online wherever Mastercard is accepted.
Does KOHO have a referral code?
Yes, you can earn rewards when you refer friends to sign up with KOHO. You can choose from two options:
- $20 cash to spend however you want
- Three free months of KOHO Extra, valued at $27
Both you and your friend get rewarded, and you can refer up to 50 friends. Find your referral code by logging in to the KOHO app and tapping the gift icon. Your friend will need to register and verify their account, then make their first purchase of at least $20 within 30 days before you can both qualify for a referral reward.
Is KOHO legit?
Yes, KOHO is a legit financial technology company. This Canadian company and its app have received tens of thousands of customer reviews, while KOHO provides essential legal documents and a privacy policy on its website. It’s also registered with FINTRAC and regulated as a Money Services Business.
KOHO account holders can take advantage of CDIC protection as well as security measures like data encryption, account authentication and ongoing account monitoring.
How does KOHO compare to alternative banking options in Canada?
The Canadian digital banking space has become increasingly crowded in recent years, so how does KOHO stack up against competitors like EQ Bank, Simplii Financial and Tangerine?
In short, there are some areas where KOHO comes out on top and others where it falls short. What makes KOHO an attractive proposition is its high savings interest rate, its cash back perks and its suite of helpful products like Credit Building and KOHO Cover.
What holds it back are factors like monthly fees—which you must pay if you want the maximum interest and cash back rates—and the fact that it doesn’t have an ATM network.
KOHO vs EQ Bank
The EQ Bank Personal Account has a lower (but still competitive) interest rate than KOHO but doesn’t charge any monthly fees. You also get free withdrawals from any ATM in Canada and 0.5% cash back on all EQ Bank Card purchases.
As for which account comes out on top, it all depends on the types of transactions you perform and the KOHO plan you choose. Check out our EQ Bank vs KOHO comparison to find out more.
KOHO vs Simplii Financial and Tangerine
If you’re searching for traditional banking products like credit cards, registered accounts, lines of credit and mortgages, you’ll need to consider alternatives like Simplii and Tangerine.
These providers don’t have the same high interest rates as KOHO, but they both offer a suite of more conventional banking services along with the convenience of accessing large ATM networks. Find out more in our Simplii Financial vs KOHO guide.
Dive deeper: Alternatives to KOHO
Pros and cons of using KOHO
Pros
- Free transactions. KOHO supports unlimited transactions, so you can use your account to pay bills, send e-Transfers and make purchases as needed.
- Earn up to 3.50% interest. With interest of up to 3.50% on a KOHO Everything plan, you can access one of the best high interest savings account rates on the market.
- Earn up to 2% cash back. All KOHO plans offer cash back when you spend with your prepaid Mastercard, and the earn rate climbs up to 2% cash back with an Everything plan.
- Highly rated mobile app. The KOHO app has an average rating of 4.7/5 or higher based on tens of thousands of user reviews across Google Play and the Apple App Store.
- Credit score monitoring. You can take advantage of one free credit score check per month on all KOHO plans.
- Budgeting tools. KOHO offers an in-app budgeting tool to help you track and manage your spending plus features like RoundUps to help you reach your savings goals.
- Other products. If you need to improve your credit score or access a short-term loan, KOHO’s product range provides options worth checking out.
Cons
- No ATM network. KOHO doesn’t have its own ATM network for free withdrawals, so you may be charged a $2 – $3 out-of-network fee when you withdraw cash.
- Monthly fees. Two of KOHO’s three account plans come with monthly fees, while other services like KOHO Cover incur extra fees. If you want to access the highest interest rate on your savings and earn the highest possible cash back on your spending, you’ll need to pay $14.75 for the Everything plan.
- No branches. KOHO doesn’t have a physical branch network, so you can’t visit a location in person if you want face-to-face customer service.
- No cheque deposits. You currently cannot deposit cheques into your KOHO account, although the cheque deposit feature is listed as “coming soon.”
- Some features not yet available. Some other KOHO features are also still being developed, including a line of credit, the KOHO Metal Card and KOHO Pay Later.
- No wire transfers. KOHO accounts don’t have SWIFT Codes, International Bank Account Numbers (IBANs) or Bank Identifier Codes (BICs), so they can’t receive wire transfers.
- No overseas transfers. You can’t use your KOHO account to send money overseas. KOHO instead recommends using third-party service Wise for international transfers.
Bottom line
If you’re comfortable managing your money digitally, there’s plenty to like about KOHO. It’s convenient for day-to-day transactions, rewards you for spending money as well as saving and offers a user-friendly mobile app.
It does have some shortcomings—like no ATM network and the fact that some features are still being developed—and you’ll need to be prepared to pay a monthly fee for at least two out of three plans. But if you’re searching for a competitive savings rate, easy access to your funds and a range of other perks, KOHO could be the perfect choice.
Want to get started with a KOHO account?
Frequently asked questions about KOHO
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