If you’re looking to open an account online or get a cash advance in Canada, you may have noticed there’s a lot to choose from. KOHO is one of Canada’s most popular online financial institutions, but if you’re looking to expand your search to other fintechs and banks, there are plenty of alternatives worth your consideration.
KOHO is a financial technology company, rather than a traditional bank. It offers online financial services that work like a bank account, by allowing you to use a prepaid Mastercard attached to a no-fee spending account.
KOHO is backed by its investors, which include Rockefeller Capital, Drive Capital and Portag3, and is partnered with Mastercard.
Top 4 banking alternatives to KOHO
1. EQ Bank
EQ Bank is an online bank that is insured by the Canada Deposit Insurance Corporation (CDIC) and offers customers a wide range of personal and business banking products.
Its primary offering is the EQ Bank Personal Account, which is a chequing account that comes with up to 2.75% in high-interest savings, and zero fees on everyday banking.
EQ Bank also offers dedicated savings accounts for TFSA and FHSA, as well as investment accounts. It also has a robust mobile app iOS and Android that makes it easy and convenient to manage your account.
And like KOHO, EQ Bank offers cashback where you can earn 0.5% cashback on your purchases when you make purchases with the prepaid EQ Bank Card.
Earn 1% - 2.75% interest with an EQ Bank Personal Account. Enjoy high interest with no fees on everyday banking, plus unlimited transactions and no minimum balances. Sign up online in minutes. Plus, you can also apply for a Joint account if you're looking to save with your partner or family.
$0 account fee
unlimited transactions
$0 Interac eTransfers
Earn interest on your balance
Earn 0.5% cashback on your purchases
EQ Bank will refund withdrawal fees for using any ATM across Canada
No physical branches for in-person service
Some standard banking features not available such as overdraft protection and the option to have paper statements
Monthly Account Fee
$0
Free Transactions
unlimited
Interac e-Transfer Fee
$0
In-Network ATM Fee
$0
NSF Fee
$0
Foreign Transaction Fee
0%
CDIC Deposit Insurance
$100,000
Bonus Offer
Earn 2.75%
2. Tangerine
A subsidiary of Scotiabank, Tangerine is an online bank offering chequing and savings accounts, as well as credit cards and investment products. They also have lending options including mortgage, HELOC and line of credit borrowing.
Tangerine’s No-Fee Daily Chequing Account is a popular choice among Canadians looking for a hassle-free, low-cost online bank account.
And if you’re into cash back rewards, the World Mastercard can provide unlimited money back at up to 2% rewards, with no annual fee.
The Tangerine No-Fee Daily Chequing Account comes with a $0 monthly fee and unlimited free transactions and Interac e-Transfers. Easily manage your money 24/7 with Tangerine's highly-rated mobile app. Plus, earn up to 0.1% interest on every dollar.
Earn decent interest rates
Unlimited transactions
Free Interac e-Transfers
Free cheques
Mobile cheque deposits
CDIC coverage
No in-person service
You can only earn the welcome bonus if you're a new Tangerine customer
Monthly Account Fee
$0
Free Transactions
unlimited
Interac e-Transfer Fee
$0
In-Network ATM Fee
$0
NSF Fee
$45
Foreign Transaction Fee
2.5%
CDIC Deposit Insurance
$100,000
Bonus Offer
Earn $250
3. Simplii Financial
An offshoot of CIBC, Simplii Financial offers a range of different account and product types. From a no fee chequing account, to a high interest savings account (up to 4.5%) and even a student bank account, there is plenty to choose from.
Simplii also offers personal loans and lines of credit, as well as mortgages and investing products.
The Simplii No Fee Chequing Account offers a $0 monthly fee, free transactions, free e-Transfers and no minimum deposit requirements. Earn up to 0.01% interest on your balance, and make purchases with a Debit Mastercard.
Earn a welcome bonus of up to $300
Enjoy unlimited free transactions and e-Transfers
No monthly account fee
Earn 0.01% interest on your balance
No minimum deposit requirements
Earn a referral bonus
Free access to over 3,400 CIBC ATMs across Canada
Simplii is an online only provider
You can only earn the welcome bonus if you're a new Simplii customer
Residents of Quebec cannot open a Simplii account
Monthly Account Fee
$0
Free Transactions
unlimited
Interac e-Transfer Fee
$0
In-Network ATM Fee
$0
NSF Fee
$45
CDIC Deposit Insurance
$100,000
Bonus Offer
Earn $300
4. Neo Financial
Neo is another Canadian financial technology company offering competitive, low-fee and high-interest banking. As well as a hybrid chequing/savings account, Neo offers a range of products including credit cards, mortgages and investment management services.
The Neo Money card is a prepaid Mastercard with no monthly fees, free everyday transactions as well as some of the highest cash back rates at thousands of local businesses.
Plus, the Neo app makes it easy to automate and track payments, budget and manage your money.
Neo Financial's Everyday Account has no monthly fee and offers free day-to-day transactions. There's no minimum balance required either, and the account comes with a prepaid Mastercard that can be used in-store and online. You can earn 2% cashback on gas and groceries and 0.5% on other purchases (when you have $3,000 in your Everyday account), but the earn rate varies depending on the size of your account balance.
Get 2% cashback when you buy gas and groceries (when you have $3,000 in your Everyday account)
One of the products offered by KOHO is interest-free cash advances of up to $250. KOHO is among the few fintechs in the Canadian market that offer small, no-interest cash advances. Alternatives to consider include Nyble and Bree.
Apply online for an interest-free line of credit of up to $250 to cover small expenses and build your credit. Get funds in 1-3 business days with a free account. For $11.99, get access to premium services, including funding in 1-30 minutes, credit monitoring and identity theft protection.
Easy application process
No credit check
No interest
Can improve your credit score
Roll over your loan
$11.99 for fast transfers, a full credit report and other premium perks
Small loan amounts only
Costs
0%
Loan Amount
$30 – $250
Loan Term
31 days, extendable
Credit Check
No
Turnaround Time
1-30 minutes with a paid membership or 1-3 business days with a free membership.
Requirements
You must be 18 years or older and have a minimum monthly income of $1,000.
Bree lets you borrow up to $500 to help cover expenses until your next payday. You won't have to pay any interest or fees for standard funding, but there's a $2.99 monthly subscription fee plus a small extra fee if you want funding within minutes.
Easy application process
No credit check
0% interest and no late fees
$2.99 optional monthly membership fee for express funding
Loan amount may not be enough for your needs
May not improve your credit, unlike Nyble
Costs
0%
Loan Amount
$20 – $500
Loan Term
Next pay cycle (90 days max)
Credit Check
No
Turnaround Time
Receive funds within 5 minutes with express delivery (the fee is based on the advance amount) and within 1 to 3 business days for standard delivery.
Requirements
You must have a bank account with regular income deposits and a Visa or Mastercard debit card with a CVV
Serviced Provinces
All provinces and territories
Apple App Store Rating
4.8
Google Play Rating
4.9
What to consider when choosing an online bank like KOHO
With so much on offer when it comes to online banking, it can be an exciting time shopping around for the best deal. But the wealth of options also makes it a bit of a challenge to find the right bank like KOHO for you. Here are some key points to keep in mind when making your choice:
Low fees
The majority of online banks come with zero monthly fees, as well as no minimum account balance fees and unlimited transactions. However, watch out for other fees such as foreign transaction or non-sufficient funds fees, which can often come in at around $45.
Take a detailed look at the fees for any bank you’re considering seriously, and keep in mind which of those fees you’re more likely to trigger depending on your banking habits.
Interest rates
One of the biggest benefits of online banking is the significantly higher interest rates when compared with traditional brick-and-mortar banks. These rates are possible for online banks because of their overhead savings, coupled with an extremely competitive and growing fintech industry.
Consider what kind of account(s) you’ll use with an online bank, and whether you’d prefer chequing, savings or a hybrid account. Interest rates can vary a lot, especially when taking promotional rates into account. Even though online banks offer great interest rates, it’s always worth checking the fine print.
This aspect can make or break an online bank. With no possibility of face to face interactions, online banks have a huge gap to fill when it comes to customer service, and some do it better than others.
Online banks typically offer a range of phone, email or chat services. Whether your bank is online or not, good service is still a vital aspect of business and will be crucial if you ever face any issues with your account.
You can browse online review sites and social media in order to learn about how well your potential online bank is doing in this regard.
Money transfers
When working with an online-only bank, it can help to have access to Interac e-Transfer or some alternative, easy money transfer solution.
You won’t have access to services such as wire transfers, as you would with a traditional bank, so if sending or receiving money is something you do often you’ll want to keep your eyes open for an online bank that can facilitate that. You can also look out for banks offering free Interac transfers.
Account protection
When you deposit money with KOHO, your funds are held by Peoples Trust, a Vancouver-based financial institution that runs the Peoples Bank of Canada. Peoples Trust is federally regulated by the Office of the Superintendent of Financial Institutions (OSFI). It must cooperate with policies designed to prevent money laundering and fraud.
Security measures usually employed by banks to protect customers’ information and money include data encryption, multi-factor authentication and automatic session timeouts.
When looking for alternatives to KOHO, find an institution that is (or that works with) a member of the Canada Deposit Insurance Corporation (CDIC) to ensure that your money will be covered up to $100,000 per eligible category if the institution goes out of business.
How Canadians see alternatives like KOHO
In our recent Finder: Consumer Sentiment Survey January 2025, we asked Canadians what type of financial providers they would consider opening an account with among the Big 5 Banks (RBC, TD, BMO, Scotiabank and CIBC), other brick-and-mortar banks (e.g. National Bank and ATB), digital banks or fintechs (e.g. Tangerine, Simplii Financial, EQ Bank or KOHO) and credit unions (e.g. Coast Capital, Meridian, Vancity or Alterna).
It turns out, that nearly half of Canadians (48.25%) would consider opening an account with digital banks and fintechs like KOHO.
Bottom line
KOHO is among the top online financial institutions in Canada, but the landscape is competitive and there are a host of other strong options to choose from. Whether it’s no-fee chequing, high-interest saving, investment tools or competitive mortgage lending, you’ll find it all online – perhaps even in one place.
While KOHO is not a bank, per se, it is a legitimate financial technology company offering banking services. They are backed by a range of private investors, and although bank failure is very rare – if not unheard of in Canada – KOHO does claim to be insured by the CDIC.
Some Canadian apps that are most like KOHO are EQ Bank's mobile banking app and Simplii Financial's banking app. Both of these alternative apps offer access to your money, transfer options, spending tracking and more financial management features.
The Canada Deposit Insurance Corporation (CDIC) is a federal Crown corporation that provides insurance for deposit holdings at banks and other financial institutions. Any customer who opens a bank account at a CDIC insured bank will be covered for up to $100,000 in the unlikely event that the bank fails.
Yes. KOHO is based in Toronto, Canada. You also have to provide valid Canadian ID to sign up for an account.
KOHO does offer both standard and flexible credit-building programs, and payments are reported to Equifax. By making regular purchases and payments through KOHO, users can build up a positive history of payment which should be reflected in their credit score over time.
Online banks offer a lot that we wouldn't usually find at traditional banks – primarily high-interest savings. However, the major downside with online banks is the limitation around customer service. With no physical locations or stores, online banks can only provide service either online or over the phone, which doesn't suit everyone.
That said, online banks can still offer good customer service. Just check out some reviews before you make your final decision when choosing a new bank.
Steven Brennan is a freelance finance writer working from Vancouver, B.C. He has a BA and an MA in English Literature at the University of Ireland, Maynooth, and also spent time working in Italy and Vietnam as an English teacher. Today, he writes regularly on a range of personal finance topics including banking, loans, mortgages, insurance and tax. His work has appeared on sites such as LowestRates.ca and WealthRocket, as well as in print with Canadian MoneySaver.
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Stacie Hurst is an editor at Finder, specializing in loans, banking, investing and money transfers. She has a Bachelor of Arts in Psychology and Writing, and she has completed FP Canada Institute's Financial Management Course. Before working in the publishing industry, Stacie completed one year of law school in the United States. When not working, she can usually be found watching K-dramas or playing games with her friends and family.
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