KOHO vs Neo Financial: Which one is right for you?

KOHO and Neo Financial are two popular Canadian fintechs that offer a range of ways to save, spend and earn cashback. If you’re searching for competitive savings account interest rates, cards that pay cashback on your spending and user-friendly mobile apps that make it easy to manage your account, both KOHO and Neo are well worth checking out.

But which one is better? Let’s compare KOHO vs Neo Financial side-by-side to find out.

KOHO vs Neo Financial: An overview

KOHO is a Toronto-based fintech that combines everyday spending and savings features in one account, allowing customers to earn cash back on eligible purchases and interest on their balance. KOHO offers a free Core plan, as well as two paid plans: Extra and Everything, which provide higher interest and cash back rates. KOHO also offers a line of credit, cash advance and international money transfers.

Neo Financial is a Calgary-based fintech that offers a separate no-fee chequing and savings account, as well as credit cards, managed investment portfolios, mortgages and a cash advance. Neo offers four membership tiers:

• Essentials: $0
• Start (coming soon): $0 with an eligible payroll deposit, or $4.99 a month
• Build: $0 with a Neo World Elite Mastercard or $9.99 a month
• Grow: $14.99 a month

Its paid memberships offer benefits like access to Neo Advance, ATM fee reimbursement, premium support and no FX fees.

KOHO vs Neo Financial: Chequing accounts

KOHO doesn’t offer a traditional chequing account. Instead, chequing and savings features are combined into a single hybrid account. You can use it to carry out everyday transactions like sending e-Transfers, paying bills and paying for purchases with a prepaid Mastercard, but at the same time you also earn interest on your account balance.

Its Core plan is free, but its paid Extra and Everything plans offer higher interest and cash back rates, while also adding benefits like no foreign transaction fees, 1 international ATM fee reimbursement per month and a free eSIM each month.

The Neo Chequing account is a separate no-fee account designed for everyday banking. It offers unlimited transactions, free Interac e-Transfers, 1% cashback on gas and groceries and 0% interest.

Both accounts come with a prepaid Mastercard that you can use for in-person purchases and ATM withdrawals.

Who’s the winner?

KOHO. Its free Core plan offers higher interest and cashback rates than the Neo Chequing account. However, it doesn’t offer ATM fee reimbursement, which is something to consider if you withdraw a lot of cash.

KOHO vs Neo Financial: Savings accounts

As we mentioned, KOHO doesn’t offer a traditional savings account. Instead, its hybrid account has features of a savings account, like earning interest. The rate depends on your plan, but you can earn up to 3.50% once you opt in. You can also earn cashback of up to up to 2% cash back on eligible spending.

Neo Savings is a dedicated savings account that also has free and paid tiers that impact your interest rates. You can earn up to 3% in interest, but there’s no cashback available.

Both providers offer ways to reduce the cost of their paid plans, with KOHO offering a discount for annual payments and Neo waiving the Build membership fee when you have a Neo World Elite card.

Who’s the winner?

KOHO. It offers a higher maximum interest rate and cashback on eligible spending.

KOHO vs Neo Financial: Credit cards

Neo Financial offers several credit card options to suit different spending habits:

When you’re approved for a Neo credit card, you’ll instantly receive a virtual card that you can add to your mobile wallet and start using right away. All of Neo’s credit cards are also available with a secured credit limit, making them a good option for people looking to build or rebuild their credit.

Meanwhile, KOHO doesn’t offer any credit cards.

Who’s the winner?

Neo Financial is the clear winner if you’re looking for a credit card.

KOHO vs Neo Financial: Investments

Neo Financial offers Neo Invest, an investment service powered by wealth management partner OneVest. You can set your investment goals, time frame and risk tolerance to get a customized actively managed portfolio. You can invest through a TFSA, RRSP or non-registered personal account.

KOHO offers cryptocurrency trading through its partner, Ndax, allowing eligible users to buy and sell crypto directly in the KOHO app. You can trade with as little as $1, with a 0.5% trading fee per transaction.

Who’s the winner?

It’s a tie. Neo Financial offers managed investment portfolios and registered accounts, while KOHO provides cryptocurrency trading. The better choice depends on what you want to invest in.

KOHO vs Neo Financial: Borrowing

KOHO provides a range of options for borrowers. These start with KOHO Cover, which provides a cash advance of up to $500. You can apply without a credit check, and then repay what you borrow at any time. There’s no interest; you just have to pay a monthly fee that starts at $2.

Next is the KOHO Line of Credit, provided by Fora, which allows you to access amounts ranging from $1,000 to $15,000. Interest rates start at 19.9%, and you only pay interest on the funds you use.

Finally, KOHO also offers a Pay Later plan, allowing you to pay off purchases of up to $1,000 in installments over 3, 6 or 9 months.

Neo Financial also offers an interest-free cash advance, but its maximum is lower than KOHO’s at $300. There’s no credit check, and you have up to 34 days to repay the advance. However, you need a paid Build or Grow membership to use this service.

Neo Financial also offers mortgages through Neo Mortgage that you can use for home purchases, renewals and switches, with fixed and adjustable-rate options available. Homebuyers can qualify with as little as 5% down, subject to approval and applicable minimum down payment rules.

Who’s the winner?

It’s a tie. KOHO has a wider range of borrowing options, while Neo Financial is a better choice if you’re looking for a mortgage.

KOHO vs Neo Financial: Credit building

KOHO and Neo both offer tools designed to help you build credit history and improve your credit score.

Open a KOHO account and you can check your credit score at no cost. And if you sign up for an Everything plan (for $14.75 a month), you get a free copy of your Equifax credit report.

KOHO also offers Credit Building, which provides you with access to a no-interest line of credit for a monthly subscription fee of $5-$10. KOHO recommends keeping your credit utilization at 1% or less and ensuring you have enough funds in your account to cover repayments and subscription fee to help improve your credit score. You’ll get access to your Equifax credit report and KOHO’s in-house financial coach for tips on managing your money too.

Neo Financial’s Build membership ($9.99 per month) provides access to TransUnion credit score monitoring, credit-building tools and access to a secured credit card. You can set your credit limit by providing a refundable security deposit, starting at $50. Neo reports your credit card payments to both Equifax and TransUnion to help you establish a credit history.

Who’s the winner?

Neo Financial. Although KOHO offers access to a financial coach, Neo Financial’s secured credit card gives you more flexibility to make everyday purchases and build credit through regular card payments.

How do the mobile apps for KOHO vs Neo Financial compare?

Like all modern fintechs and financial institutions, KOHO and Neo Financial both offer iOS and Android apps.

Use them side-by-side, and you’ll note that both offer sleek, stylish and user-friendly interfaces. They also make it easy to do things like transfer funds, pay bills, check balances and access spending insights. But while Neo Financial supports mobile cheque deposits, the KOHO app doesn’t.

Both apps are highly rated by users, but KOHO has a slightly higher rating on Google Play and more customer reviews.

Who’s the winner?

Neo Financial. Its higher Google Play rating and support for mobile cheque deposits give it the edge.

KOHO vs Neo Financial: Other features and perks

International money transfers

KOHO lets you send international money transfers to more than 190 countries directly through its app. Transfer fees are transparent but vary depending on the destination, amount and payout method. KOHO uses the live exchange rate and funds typically arrive in 30 minutes.

Travel perks

KOHO offers travel benefits through its paid plans, including no foreign transaction fees, one free international ATM withdrawal each month, as well as a free monthly eSIM. You can also purchase travel insurance from KOHO.

Neo Financial’s Grow membership also offers no foreign transaction fees for eligible purchases. For more travel perks, the Neo World Elite Mastercard includes travel insurance and airport lounge access. The United MileagePlus Neo World Elite Mastercard and Cathay World Elite Mastercard offer additional airline-specific benefits, making them worth considering if you regularly fly with United Airlines or Cathay Pacific.

Virtual cards

Both KOHO and Neo Financial offer virtual cards that you can add to your mobile wallet or use online so you don’t have to wait for a physical card to arrive. KOHO provides a virtual version of its prepaid Mastercard, while Neo Financial offers a virtual Neo Money card with its chequing account and virtual versions of its credit cards.

What does Reddit think of the KOHO vs Neo Financial debate?

Spend some time scrolling through the PersonalFinanceCanada Subreddit and you’ll find plenty of negative feedback for both KOHO and Neo Financial. The main complaint for both providers centres on poor customer support, particularly when customers are trying to resolve fraudulent transactions on their accounts.

Both KOHO and Neo also receive some positive feedback from Reddit users, commonly thanks to their competitive cashback and savings interest rates. But as for choosing a winner in the Koho vs Neo Financial debate, Reddit doesn’t sway the argument either way.

Final verdict:

While there’s plenty to like about Neo Financial’s suite of products, KOHO is the better choice for more people. With a competitive interest rate, unlimited cashback, the option of no monthly fee and a wide range of other perks, KOHO comes out on top.

But if you want the option for fee-free banking without having to set up direct deposits into the account, Neo Financial may be the better choice. Plus, you’ll still be able to earn cashback on some purchases and a decent savings interest rate.

Ultimately, make sure you compare a range of online-only banks and fintechs before deciding on the right digital banking solution for you.

Alternatives to KOHO and Neo Financial

Not sure if KOHO or Neo is right for you? Check out these other digital banking alternatives.

• EQ Bank. EQ Bank is an online-only bank best known for its hybrid Personal Account. But it also offers competitive rates on its Notice Savings Account, plus GICs, mortgages, and free ATM withdrawals across Canada with the EQ Bank Card.
• Wealthsimple. The Wealthsimple Chequing Account combines free everyday banking with competitive interest on your savings. The platform also offers stock and crypto trading, a cashback credit card and a USD savings account.
• Simplii Financial. CIBC’s digital banking arm offers a No Fee Chequing Account and a High Interest Savings Account that regularly features attractive promo interest rates. Other products on offer include a Cash Back Visa, personal loans, lines of credit, GICs and mortgages.
• Tangerine. A subsidiary of Scotiabank, Tangerine is a digital bank that offers a Savings Account, a No-Fee Daily Chequing Account and a choice of 2 cashback credit cards. It also offers GICs, investment accounts, mortgages and lines of credit.

Frequently asked questions

• Is KOHO a bank?

  No, KOHO is not a bank but a fintech company that offers a range of financial services. It is registered as a Money Services Business by FINTRAC. However, the Toronto-based company is in the process of working to obtain a Schedule 1 banking licence.

• Is Neo Financial a bank?

  No, Neo Financial is a fintech, not a bank. It offers a range of financial products and services to Canadians, including chequing and savings accounts, investment products and a range of credit cards.

• Is my money CDIC insured with KOHO and Neo Financial?

  It depends on the account. KOHO balances are eligible for CDIC protection only when you opt in to Earn Interest. Neo Chequing and Neo Savings accounts are eligible for CDIC protection. In both caes, funds are held with CDIC member institutions and coverage is subject to CDIC's $100,000 limit per category, per member insitution.

• Do KOHO and Neo have any branches?

  No, KOHO and Neo Financial are online only and do not operate any physical branches. If you want to do your banking with a provider that offers in-person customer service, you’ll need to consider other options.

• What is the Neo Money Card?

  The Neo Money Card is a prepaid Mastercard linked to your Neo Chequing account. You can use it to make purchases online and in stores, earn cashback at participating merchants and withdraw cash from ATMs. It's not a credit card, so purchases are paid from the funds in your Neo account.

Written by

Tim Falk

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Tim Falk is a freelance writer for Finder. Over the course of his 20-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

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Tim has written 595 Finder guides across topics including:

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Rebecca Low

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Rebecca Low is a writer for Finder. She has contributed to a range of digital publications, including Wise, income.ca and Indeed, writing on topics like personal finance, career development, and travel. See full bio