KOHO is a Fintech company founded in Toronto, Canada. They offer four types of spending and saving accounts, based on the idea that Canadians should have access to easy-to-manage and simple financial products.
Key Points
1. KOHO offers four accounts, Core, Essential, Extra, and Everything, each a prepaid Mastercard that earns cash back and interest.
2. Core is the newest account and the only one that is free with no conditions. It includes free, permanent secured credit building, 2% interest, and 1% cash back.
3. The paid plans (Extra at $144/year and Everything at $177/year) add higher cash back (up to 2%), higher interest (up to 3.5%), and no foreign transaction fees.
4. Every plan includes free e-Transfers, no NSF fees, a free credit score, and CDIC eligibility up to $100,000 through Peoples Trust Company.
5. KOHO says its credit building tools have raised users’ credit scores by +74 points on average.
What Type Of Accounts Does KOHO Offer?
KOHO offers four accounts, each with a prepaid credit card which works like a hybrid debit/credit card. While this product allows users to make purchases with their own money, like a debit card, they also can earn cash back rewards like a credit card. Furthermore, account holders can earn interest on the balance they hold in their accounts and use their KOHO app to track their spending, set budgets, and receive balance updates. The newest of the four, KOHO Core, is a free base tier with no conditions.
KOHO Account Overview
| KOHO Core Account | KOHO Essential Account | KOHO Extra Account | KOHO Everything Account | |
|---|---|---|---|---|
| Account Fee | $0/month (no conditions) | $48/year (fee can be waived) | $144/year | $177/year |
| Foreign Transaction Fees | – | 1.5% | 0% | 0% |
| Cost Per Transaction | $0 | $0 | $0 | $0 |
| NSF Fee | – | $0 | $0 | $0 |
| E-transfer Fees | Free | $0 | $0 | $0 |
| Cash Back Rewards |
|
|
|
|
| Earned Interest | 2% on your full balance | 2% on entire balance | 2.5% on entire balance | 3.5% on entire balance |
| Credit Building | Included free, permanently | $10/month | $7/month | $5/month |
KOHO Core Account
KOHO Core is the newest account in the lineup and the only one that is free with no strings attached. There is no monthly fee, no direct deposit requirement, and no minimum balance you need to keep in the account to hold onto that price. That last part is what separates it from the Essential account, where the fee is only waived if you set up a recurring direct deposit or move at least $1,000 into your account each month. With Core, you get the base account at $0 whether or not your pay lands in it.
You still get the parts of KOHO that most people sign up for. Your full balance earns interest, you get cash back on everyday categories, and you get an instant virtual card you can start spending with before your physical card shows up in the mail. The bigger change is credit building, which is included at no cost and stays free for as long as you hold the account rather than being sold as a monthly add-on.
Use code LOANSCANADA when you sign up for a KOHO account and get $40 FREE when you add funds to your account.
KOHO Core Account Key Features
- $0 per month, with no direct deposit requirement, no minimum balance, and no conditions to keep the price
- 2% interest on your full balance, held through a high interest savings account
- 1% cash back on groceries, transit, and food and drink
- Secured credit building included free, permanently, rather than as a paid add-on
- Free credit score monitoring
- Free e-Transfers
- Instant virtual card, so you can spend online right away
- Physical and virtual card, with card colour options
- No credit check to open the account
KOHO Essential Account
The Essential Account comes with a fee of $48 a year. Users can get the Essential account for free if they set up a recurring direct deposit such as their paycheque or government benefits or if they deposit at least $1000 every month.
With the KOHO Essential Account, you can earn 1% cash back on groceries, transportation, and eating and drinking. When you purchase from select merchants, you can earn up to 6.5% cash back.
Essential Account holders earn 2% interest on the entire balance in their account.
Use code LOANSCANADA when you sign up for a KOHO account and get $40 FREE when you add funds to your account.
KOHO Essential Account Key Features
- Has an annual fee of $48
- Fee waived if you set up a direct deposit or contribute $1000 per month
- 1% cash back on groceries, transportation (gas, parking, rideshare apps, etc.), and eating and drinking
- Up to 6.5% extra cash back with select merchants
- Earn 2% savings interest on the entire balance in your KOHO account
- Free e-transfers
- No NSF fees
- Credit Building for $10/month
- Flexible Credit Building also available
- Get your credit score for free in-app
- International money transfers
KOHO Extra Account
With a fee of $144 a year, you can gain access to the KOHO Extra Account. While this card may have a significant fee, users can try out the Extra Account for free using the 30-day free trial. Plus, it comes with many perks that may be worth the cost. This card provides a higher cash back rate of 1.5% for groceries, transportation, and eating and drinking. Plus 0.25% for all other categories.
You can also earn up to 6.5% cash back when you make purchases with merchants that are partnered with KOHO.
Moreover, Extra comes with no foreign transaction fees, which will help you avoid around 2.5% in fees for each withdrawal. If you travel outside of Canada, you can take advantage of one free international ATM withdrawal a month.
Extra Account holders earn 2.5% interest on the entire balance in their account.
Use code LOANSCANADA when you sign up for a KOHO account and get $40 FREE when you add funds to your account.
KOHO Extra Account Key Features
- Has an annual fee of $144
- 1.5% cash back on groceries, transportation (gas, parking, rideshare apps, etc.), and eating and drinking
- 0.25% cash back on all other categories
- Up to 6.5% extra cash back with select KOHO partners
- Earn 2.5% savings interest on the entire balance in your KOHO account
- No foreign transaction fees
- 1 Free International ATM withdrawal each month
- Credit Building for $7/month
- Flexible Credit Building also available
- Get your credit score for free in-app
- International money transfers
KOHO Everything Account
With a fee of $177 a year, you can gain access to KOHO’s most prestigious account, the KOHO Everything Account. This account comes with all the same benefits as the Extra Account, with a few added perks. You’ll earn 3.5% interest on the entire balance of your KOHO account, the highest rate that KOHO offers. Plus, if you’re interested in building your credit history, you can access KOHO’s Credit Building product at the discounted cost of $5 a month.
Use code LOANSCANADA when you sign up for a KOHO account and get $40 FREE when you add funds to your account.
KOHO Everything Account Key Features
- Has an annual fee of $177
- 2% cash back on groceries, transportation (gas, parking, rideshare apps, etc.), and eating and drinking
- 0.50% cash back on all other categories
- Up to 6.5% extra cash back with select KOHO partners
- Earn 3.5% savings interest on the entire balance of your KOHO account
- No foreign transaction fees
- 1 Free International ATM withdrawal each month
- Discounted Credit Building for $5/month
- Flexible Credit Building also available
- Get your credit score for free in-app
- International money transfers
| KOHO Joint is now available on all 3 KOHO plans. Two users can now manage everyday spending and savings together, each with their own card and full access to the account. If either account holder has an Everything Plan, those premium benefits automatically apply to the Joint Account at no additional cost. |
How Does KOHO Work?
First, you’ll have to create an account by signing up online. Once you have your account set up you can add money to your account in the KOHO app via Interac e-Transfer or through automatic payroll deposits. Once you have money in your account you can use your virtual KOHO prepaid credit card through the KOHO app as you would a debit or credit card.
You can use your digital KOHO card to make purchases online and even in-store if they have the payment system to accept virtual prepaid cards. You could also link your virtual KOHO card to your digital wallet like Apple Pay or Samsung Pay.
KOHO’s prepaid credit card offers a balance between the accessibilities of a debit card and the rewards of a credit card. Moreover, with KOHO you can use its app to track your spending, check your balance, and stay on track to meet your financial goals.
How Much Does It Cost To Open An Account With KOHO?
Depending on the type of account you choose, it can cost you anywhere between $0 and $177 a year. The Core account is free with no conditions. KOHO’s Essential Account costs $48 yearly, but it can be waived if you set up a recurring direct deposit or if you deposit at least $1000 every month into your account. The Extra Account costs $144 yearly, and its Everything Account costs $177 yearly.
Pros And Cons Of Using KOHO
When you sign up for a KOHO account, you’ll notice the pros far outweigh the cons. Below, we’ve listed the benefits and drawbacks of using KOHO.
Pros
- Fast and easy application: Opening an account takes only a few minutes, and you get a virtual prepaid card you can use right away.
- No transaction fees: Unlimited Interac e-Transfers, ATM withdrawals, and electronic fund transfers with no per-transaction fee.
- Earn cash back: Up to 2% cash back on certain categories and up to 6.5% with KOHO partners, depending on your plan.
- Earn interest: Up to 3.5% savings interest on your entire balance, with no minimum balance required.
- Money management tools: Track and budget your spending with real-time data in the KOHO app.
- Third-party e-Transfers: Accept e-Transfers to your KOHO account from friends and family.
- International money transfers: Send money to over 190 countries with competitive rates and no hidden fees.
Cons
- Foreign transaction fees: The Essential and Core plans charge 1.5% on foreign purchases. To avoid this, you need an Extra or Everything account.
- No direct effect on your credit score: The prepaid card itself is not reported to the credit bureaus. To build credit, you need one of KOHO’s Credit Building programs (free on Core).
- Daily spending limit: Purchases are capped at $4,000 per day.
KOHO’s Credit Building Programs
In addition to its accounts, KOHO also offers its users two Credit Building Programs to help them build healthy credit histories.
Credit Building Program
If you have trouble accessing affordable credit due to bad credit, KOHO can help you build your credit history through its Credit Building Program. This Credit Building Program is a credit-building line of credit with a monthly subscription fee that depends on your plan: $10 a month on Essential, $7 a month on Extra, and $5 a month on Everything. On the new Core plan, secured credit building is included for free.
You can stay opted in for as many months as you need. KOHO recommends at least 3 months for best results. When you subscribe, KOHO will automatically deduct the subscription fee from your account each month and report these “payments” to a credit bureau (Equifax). There’s no hard credit check.
Flexible Credit Building Program
On the other hand, KOHO’s Flexible Credit Building Program is a secured line of credit. With this option, you will need to have $30 to $500 set aside within your KOHO account to act as security for the line of credit. You’ll also be charged a $5 monthly service fee, though this secured credit building is included free on the Core plan. You can then use your line of credit to make purchases and repay what you owe each month. These payments are reported to a credit bureau and can help build a healthy credit history.
| New Offer: Get 50% Off Credit Building New users can now access Credit Building monthly or with a 3-month plan for $15 — a 50% discount. KOHO users have seen their credit scores increase by +31 points on average within 4 months. |
How To Open An Account With KOHO
To create an account with KOHO, you’ll have to fill out an online application with a few details. It’s a 5 step process that’ll take you as little as 5 minutes to complete.
When you fill out your online application, make sure you have a copy of any 2 of the following documents to verify your identity.
- Driver’s License
- Passport
- Work permit
- Utility bill
- Bank statement
Bottom Line
While there are many prepaid credit cards available on the market, the KOHO card comes with many perks including the ability to earn cash back, budget, and track spending. With the new Core account, you can now get started for free with no conditions, which makes it easy to try KOHO before deciding whether a paid plan is worth it.
KOHO Account FAQs
While KOHO’s prepaid credit card acts like a credit card, it is not a real credit product. Purchases made on your card use the money you’ve loaded into it. As such, these payments are not reported to the credit bureaus and thus cannot help you build credit. However, KOHO does offer a Credit Building Program to help its clients improve their credit, and secured credit building is included free on the Core plan.
Prepaid credit cards are a great alternative to traditional credit cards because they can be used in the same way but don’t come with any specific approval requirements. Users preload their cards with cash and therefore won’t be tempted to overspend.
Yes, you can use your KOHO prepaid credit card both online and in-store.
Not every account has a fee. The Core account is free with no conditions. You can also get the Essential Account for free if you set up a direct deposit or deposit $1000 per month, while the Extra and Everything accounts have annual fees.
Yes, you can withdraw cash from your KOHO account. To withdraw cash, you’ll need to select credit as your type of card. While KOHO does not charge any ATM fees, you may be charged a $2 to $3 fee by the ATM.
Yes, KOHO is just as safe as any other big bank in Canada. They’ve partnered with Peoples Trust Company, a federally regulated CDIC-insured financial institution, to store their users’ money. Your eligible deposits are covered by CDIC up to $100,000. Moreover, they have additional security measures like their in-app card locking feature.
*Actual interest may vary depending on your KOHO account plan. Interest rate is subject to change without prior notice. Interest is per annum calculated daily but paid monthly. Terms and Conditions apply.
² Actual Cash Back may vary depending on your KOHO Account plan or merchant. Cash back rate and merchants subject to change. Terms and Conditions apply.
