If you’re looking to open an account online 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.
Is KOHO a real bank?
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 7 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 3.5% 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% cash back on your purchases when you make purchases with the prepaid EQ Bank Card.
Earn 1.75% - 3.50% 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% cash back 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
Min. Age
18
Account Fee
$0
Overdraft Fee
$0
2. 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 4.6%) 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 0.1% 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% to 0.1% 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
Min. Age
18
Min. Age Teen Account
12
Account Fee
$0
Overdraft Fee
$4.97
ATM Out-of-Network Fee
$1.50
U.S. ATM Fee
$3
International ATM Fee
$3
3. 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 Savings Account pays 0.3% interest on every dollar you deposit in your account. There's no monthly fee and no minimum balance requirement, while it's easy to manage your account online or via the Tangerine mobile app. You can also automate your savings by setting up a regular deposit to your savings account.
Easy to open and manage your account
No fees
No minimum balance requirement
CDIC coverage
Other accounts have higher interest rates
No physical branches
Min. Age
16
Account Fee
$0
Transaction Fee
$0
Interac e-Transfer Fee
N/A
4. Wise
Originally established in 2011 as TransferWise, Wise specializes in international currency exchange. Whether you’re sending and receiving international payments, spending your money abroad or otherwise exchanging foreign currency, Wise is a secure, quick and genuinely low-cost choice.
In addition to low-fee currency exchange and international payments, Wise also offers a debit card that can be used to spend online or withdraw cash in over 40 different currencies, making it a useful option for those who travel frequently.
The Wise Multi-Currency Account is designed to make it easy and affordable to send and receive international payments and exchange currencies. The account lets you hold 50+ currencies currencies and convert between them at the mid-market exchange rate, while local bank account details in up to 9 currencies mean you can receive payments from around the world. It's also backed by 24/7 multilingual support in case you ever have any problems with your account.
User-friendly app
Send money in 50+ currencies currencies
Get the mid-market exchange rate on currency conversions
Receive international payments in 9 currencies
No physical branches
Transfer fees apply
Min. Age
N/A
Account Fee
$0
5. 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 Money gives you access to a high-interest savings account that pays 3% interest on every dollar you deposit. You can create separate accounts to track your balance and split money across different savings goals, and you can pair your account with a Neo prepaid Mastercard. And if you want to boost your cash back earning power, you can sign up for a Premium account for $9.99 a month.
High interest rate
Cash back across a wide range of spending categories
Highly-rated mobile app
Easy access to your money
No physical branches
Relatively new provider
You'll need a paid plan to access the highest cash back rates and other discounts
Min. Age
N/A
Account Fee
$0
Transaction Fee
$0
Interac e-Transfer Fee
$0
6. Motusbank
Owned by the Meridian Credit Union, Motusbank is based in Toronto and was founded in 2018. It offers dedicated chequing and savings accounts, as well as investment accounts, mortgage lending and HELOCs.
At 0.15% the Motusbank chequing account provides decent returns on interest, especially compared to traditional banks. But you can also top that with a 1.65% high interest savings account, with no monthly fees or minimum account balances in play.
Motusbank's High-Interest Savings Account offers a competitive interest rate of 1.65%, allowing your money to grow faster while enjoying the benefits of digital banking. With no monthly fees, free Interac e-Transfers, and the security of a subsidiary of Meridian Credit Union, Motusbank combines convenience and profitability for your savings needs.
No monthly fees
High interest rate of 1.65%
Free Interac e-Transfers
Easy access through a user-friendly mobile app
Member ownership benefits.
No physical branches
Limited product range compared to larger banks
ATM fees for using non-EXCHANGE Network ATMs.
Min. Age
18
Account Fee
$0
Transaction Fee
unlimited
Interac e-Transfer Fee
N/A
7. Wealthsimple
Founded in 2014, Wealthsimple is primarily an online investments platform. In addition to its investment products and services, Wealthsimple also offers a competitive hybrid high interest chequing account.
Offering 2.75% interest on your holdings, Wealthsimple’s save and spend account offers up to 5x times CDIC protection, and as well as zero monthly fees and free Interac e-transfers.
With a host of other leading investment services, Wealthsimple offers an attractive option for those looking to combine their banking and investments.
Although it functions as both a chequing and savings account, Wealthsimple Cash is a no-fee account with all the benefits of a high interest savings account. Perks include earning 2.75% to 3.75% interest (depending on how much money you hold in your account), being able to access your pay a day early, CDIC deposit insurance of up to $500,000 and the ability to earn 1% back in stock, crypto or cash when you make a purchase with your card.
No monthly fees
Earn 2.75% interest on your account balance
Unlimited free transfers
No minimum balance
Limited types of investments
Min. Age
18
Account Fee
$0
Transaction Fee
$0
Interac e-Transfer Fee
N/A
NSF Fee
$0
Summary: Compare KOHO to alternative banks and apps
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 are 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.
Customer service
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.
Looking for KOHO alternatives for cash advances?
KOHO also offers no-interest cash advances of up to $250 through KOHO Cover. With this unique product, KOHO is one of only a few financial institutions on the Canadian market offering small, interest-free cash advances. You can check out our full guide to cash advance app alternatives like KOHO to learn more.
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.
FAQ about KOHO and other digital banks
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.
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.
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. See full bio
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