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 help 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 blend of a 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 that it had secured $190 million in additional capital, and that one of the uses of this funding would be to support 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
Earn interest 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 $12 or $14.75 (respectively) per month when billed yearly. The higher the monthly fee, the more perks the plan offers and the higher the savings interest and cash back earn rates.
Essential is KOHO's entry-level plan. It's $4 Essential plan monthly fee can be waived if you set up a recurring direct deposit (a paycheque or government benefits) or load $1,000 to your account each month. The account provides unlimited daily transactions and pays 2.5% interest on your balance, while you can set savings goals and set funds aside in 'Vaults' using the KOHO app. You're also rewarded when you pay for purchases with your KOHO card, with 1% cash back on all grocery, transportation, eating and drinking purchases.
Earn 2.5% interest
Unlimited transactions
Monthly fee can be waived
User-friendly app
You need to meet deposit requirements to avoid the monthly fee
Extra offers all the same features as Essential but with a few extra perks. The savings interest rate rises to 3% with this plan, while you can earn 1.5% cash back on all grocery, transportation, eating and drinking purchases and 0.25% cash back on all others. While it comes with a 0% foreign transaction fee, it does charge $12 per month when billed yearly, or $18 billed monthly.
The top-of-the-line Everything plan comes with a fee of $14.75 per month when billed yearly, or $22 billed monthly, but it also offers the biggest rewards and widest range of perks. It pays 4% interest on your account balance, which makes it a very competitive offering compared to other high interest savings accounts in Canada. To top it off, you get 2% cash back on groceries, eating and drinking, and transportation purchases plus 0.5% cash back on all others.
High interest rate of 4.00%
Maximum cash back earning power
User-friendly app
Get up to up to 2% cash back
The monthly fee is as high as $14.75 per month when billed yearly, or $22 billed monthly
ATM fees
No physical branches
Min. Age
18
Account Fee
$14.75
Transaction Fee
$0
Interac e-Transfer Fee
$0
NSF Fee
$0
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.
Cash deposits in your KOHO account that earn interest — you’ll need to opt in to the Earn Interest feature — are covered by CDIC insurance.
You’re also protected against unauthorized use of your KOHO card by Mastercard’s Zero Liability policy, while KOHO says it also offers features such as 24/7 security monitoring and 2-factor authentication.
Does KOHO offer credit cards?
No, KOHO does not offer traditional credit cards, but it instead offers a prepaid card.
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:
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 spending.
Credit Building by KOHO is designed to help people with limited credit history or bad credit improve their credit score. 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 at any time. KOHO claims that users report a 22-point increase in their score in the first 3 months of using Credit Building.
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:
The Credit Building by KOHO line of credit, as 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 (if any) already applies to your account. Find out more in our full 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 $500 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 on iOS and Android devices, the app offers a smooth and seamless user experience, which 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, sign up for features like Credit Building and KOHO Cover, and check your cash back rewards.
It also provides easy access to a range of other features to help you manage your money, including:
RoundUps. This feature allows you to 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 you wish to achieve it by, then automatically creates a savings plan.
Vaults. You can set money aside in a Vault to create an emergency fund, and the money in your Vault is kept separate so that 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.
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 paint quite the same rosy picture.
There are some positive reviews for KOHO, with some users pointing to the easy-to-use app, the high savings interest rate and cash back perks, and an improved credit score 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
4.8/5 based on 80,352 reviews
Google Play
4.7/5 based on 68,856 reviews
Trustpilot
1.4/5 based on 372 reviews
Reviews last verified:
January 19, 2025
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 pay in-store and online wherever Mastercard is accepted, plus use it to withdraw cash from an ATM.
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
3 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 access to large ATM networks. Find out more in our Simplii Financial vs KOHO guide.
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 interest. With interest of up to 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 to 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 from tens of thousands of user reviews across Google Play and the App Store.
Credit score monitoring. You can take advantage of 1 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. And 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 per month when billed yearly, or $22 billed monthly 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, though 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 on 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.
KOHO is a Vancouver-based fintech that was founded in 2014. KOHO was founded by Daniel Eberhard, Jonathan Bixby, Joshua Bixby and Mike Benna. Eberhard is KOHO's CEO, and the company has received investment from firms such as Drive Capital, Portag3, BDC and TTV Capital.
KOHO offers a prepaid Mastercard and a hybrid account that can be used for everyday transactions and spending as well as for saving money. It supports unlimited transactions including free e-Transfers, pays cash back on your card purchases, and pays a competitive savings interest rate on your entire account balance.
Yes. KOHO Cover provides interest-free cash advances of up to $250. You can apply without a credit check and get funded within minutes, but you'll need to pay a fee of at least $2 to access an advance.
KOHO is partnered with Peoples Trust, a federally regulated bank that holds the funds you deposit onto your KOHO card. KOHO Financial is not a bank, but as of the time of writing, it is in the process of working to get a Schedule 1 banking licence.
KOHO's monthly fee varies depending on the account plan you choose. The base Essential plan has a $4 monthly fee that can be waived if you meet certain conditions, the mid-tier Extra plan costs $12 per month when billed yearly, or $18 billed monthly and the top-level Everything plan costs $14.75 per month when billed yearly, or $22 billed monthly. The higher the plan level you choose, the more perks you can access — including greater interest and cash back earning power.
Tim Falk is a freelance writer for Finder. Over the course of his 15-year writing career, he has reported on a wide range of personal finance topics. Whether you're investing in stocks and ETFs, comparing savings accounts or choosing a credit card, Tim wants to make it easier for you to understand. When he’s not staring at his computer, you can usually find him exploring the great outdoors. See full bio
Your guide to the interest rates, features, and pros and cons of a KOHO savings account.
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