Use promo code FINDERCODE and get a $20 cash bonus when you make your first purchase within 30 days. Opt into earning interest for free and earn 1.20% on your balance, plus an additional 0.50% in cash back on every purchase you make.
Veronica Ott was a writer at Finder. She's written for numerous finance and business websites including Loans Canada, Borrowell and Fresh Start Finance. She previously worked as a professional chartered accountant in the private equity and advertising industries.
KOHO Earn Interest is a prepaid card account with a highly competitive interest rate on your savings plus cashback rewards on your purchases. With no hidden fees, no account opening fee, no e-transfer fees, no minimum balance and no minimum deposits, KOHO Earn Interest is one of the top prepaid cards on the market today.
In this in-depth review, we take a look at how KOHO Earn Interest works including its main features, advantages and drawbacks and what you need to open an account.
Features
Interest rate: 1.2%
Fee: $0
Minimum balance: $0
Automatic savings option: Daily automatic savings option via Savings Goals
Deposit insurance: up to $100,000
What are the benefits of the KOHO Earn Interest account?
When using the KOHO Earn Interest account, users can get the following benefits:
Cash back rewards. Earn 0.5% cash back on all purchases.
Earn high interest. The annual interest rate is 1.2%. Interest is calculated daily on your entire balance and paid monthly.
No minimum balance or deposit. Obtain all the benefits of this account without worrying about minimum balances or deposits.
Your money is safe. Account balances are held in a federally-regulated financial insitution.
No additional fees. There are no account opening, money transfer or account closing fees.
Free Interac e-Transfers. It’s free to send and receive Interac e-Transfers with this account.
Compatible with major digital wallets. Your KOHO card is compatible with Google Pay and Apple Pay.
English & French mobile app. There is both an English and fully translated French version of the KOHO app.
KOHO Early Payroll feature. Get instant access to a no fee, no interest $100 paycheque advance with no impact on credit scores by setting up direct deposit to your KOHO account from your employer.
What should I look out for?
Consider the following items to ensure that the KOHO Earn Interest account is right for you:
Direct deposit requirement. In order to earn 1.2% interest on your balance, you must set up a direct deposit. Paycheques, disability benefits, childcare benefits and other similar direct deposits are eligible.
Interest rate is subject to change. While this is not a promotional rate, interest rates may vary if KOHO’s service providers change or if the Bank of Canada announces an interest rate decrease or increase. Keep in mind that the 1.2% interest rate is not introductory, exclusive to certain users or designed to expire.
Limited services. KOHO is not a financial institution. It is a financial services business. For this reason, many standard banking services are not available.
How do I open an account?
To apply for a KOHO Earn Interest prepaid card, you need to fill out an online application. KOHO operates entirely online, so the entire application process can be handled from the comfort of your home.
You’ll need to have the following information handy:
Email
Password created by you
Full legal name
Mobile number
Date of birth
Intended use for account (savings, day-to-day spending or payroll)
Occupation
Address
SIN number (only if you want to use the tax features)
Qualifying for a KOHO Earn Interest account is pretty simple. All you need to do is meet the following criteria:
Be the age of majority in your province or territory
Have a valid email address
Required information
Contact information (email address, phone number and address)
Personal information (legal name, date of birth and occupation)
How do I deposit and withdraw money?
When you sign up with KOHO, you’ll receive a Mastercard debit card. KOHO has partnered with the Mastercard network. You can withdraw money for free from any Mastercard network ATM. It is possible to withdraw cash from other ATMs, but a $2 to $3 fee may apply. KOHO has not explicitly stated if you can deposit cash at an ATM. Use Mastercard’s ATM finder to locate an ATM near you.
You can load your KOHO debit card with cash using an Interac e-Transfer, direct deposit or Mastercard debit loading. Mastercard debit loading can be done through the KOHO app using the following steps:
Open the KOHO app on your phone.
Click $, then Add Funds, then Mastercard Debit.
Enter the details of your Mastercard debit card.
Enter how much you want to load.
Click Add Funds.
The first load is free. Additional loads are free if the amount is greater than $500. For loads under $500, a $0.75 fee will apply.
How can I get in touch with KOHO customer service?
Contact the Canadian KOHO customer service team using one of the following methods:
Chat in app. Use the online chat feature in the app to talk with an expert.
Email. Send the customer service team an email at team@koho.ca or support@koho.ca.
Phone. Call KOHO support at 1-855-564-6999.
Security contact. If you suspect fraud or security breaches on your account, send an email to fraud@koho.ca.
Expert review: Our final verdict
We love the high interest rate offered on KOHO Earn Interest account balances, which is way higher than what many of Canada’s biggest banks offer with traditional savings accounts. We also love KOHO’s simple, transparent fee structure and low entry requirements (no minimum balance, account opening fees or required deposits). But if you need access to a wide range of banking features, you might want to keep comparing savings accounts to find a better fit for you.
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Frequently asked questions about KOHO
Your account is opened and held with Canadian ShareOwner Investments Inc., an IIROC regulated broker. ShareOwner deposits your money into a trust account with one or more federally regulated, Schedule 1, Canadian bank. Unfortunately, balances in the ShareOwner Account are not insured under the Canadian Investor Protection Fund (CIPF). This KOHO account is CDIC insured.
Once you open a KOHO account, you will begin to earn 1.2% interest on all your money. In addition, you can spend money from your account to earn cashback. Other account features with your existing KOHO accounts won’t change.
You can set up a direct deposit using the KOHO app and following these steps:
Open the KOHO app on your phone.
Click $, then Set up direct deposit, then download the direct deposit void cheque.
Contact the entity that you’d like to set up direct deposit with. Provide them with the direct deposit void cheque.
You have the option to have all or a portion of your payment deposited via direct deposits. It can take three to five business days to be paid into your account.
KOHO is not a formal bank because it does not have a financial institution license in Canada. It partners with financial service providers, such as Peoples Trust and Mastercard, to service its customers. This is why certain services, including international wire transfers and branch banking, are not available with KOHO.
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finder.com is an independent comparison platform and information service that aims to provide you with the tools you need to make better decisions. While we are independent, the offers that appear on this site are from companies from which finder.com receives compensation. We may receive compensation from our partners for placement of their products or services. We may also receive compensation if you click on certain links posted on our site. While compensation arrangements may affect the order, position or placement of product information, it doesn't influence our assessment of those products. Please don't interpret the order in which products appear on our Site as any endorsement or recommendation from us. finder.com compares a wide range of products, providers and services but we don't provide information on all available products, providers or services. Please appreciate that there may be other options available to you than the products, providers or services covered by our service.