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

Simplii Financial is well worth checking out if you want a no-fee daily chequing account, a high interest savings account, or personal loan or line of credit. And while KOHO doesn’t offer the same wide range of products as Simplii, its spending and savings account combines convenient access to funds with competitive interest and cash back rates.

Keep reading to find out how Simplii Financial and KOHO stack up against one another in terms of banking, borrowing, investing and more.

Simplii Financial vs KOHO: A quick comparison

Feature or product	Simplii Financial	KOHO
Bonus	Earn 6.00% interest for 5 months on up to $1,000,000 in savings. Apply by January 31, 2025.	Earn Essential for $0 when you set up Direct Deposit or load $1000 per month
Savings	APY: Up to 6.00% Transaction Fee: $0	APY: Up to 5.00% Transaction Fee: $0
Chequing	Monthly fee: $0 Minimum deposit: $0 APR: Up to 0.1%	Monthly fee: $4 – $19 Minimum deposit: N/A APR: N/A
ATMs	Total ATMs: 3,400 through CIBC network across Canada ATM fee: $0	Total ATMs: Cirrus network ATM fee: N/A
Branches	Online only	Online only
	Go to site	Go to site

Simplii Financial vs KOHO: Account options

Simplii Financial is CIBC’s digital banking division, and it offers a lot of the products and services you’d expect from a traditional bank. These include a chequing account, savings account, personal loans and lines of credit, a credit card and mortgages. As it’s an online-only bank, Simplii doesn’t operate any physical branches — but you do get fee-free access to CIBC’s nationwide network of 3,400 ATMs.

KOHO is a Toronto-based fintech that offers a spending and savings account along with a prepaid reloadable Mastercard. It combines the interest-earning power of a savings account with the convenient access to funds of a chequing account. You can also earn cash back on your spending, but the earn rate varies depending on the plan level you choose. KOHO accounts can be managed online or via an Android and iOS app.

Dive deeper: KOHO review

Dive deeper: Simplii review

Banking

If you’re looking for a no-fee account that lets you manage your everyday banking, Simplii Financial might be a perfect fit. But if you want easy access to your money along with the ability to earn interest at a competitive rate, KOHO is the better choice.

The Simplii No Fee Chequing Account has no monthly fee and no minimum balance requirements, and it supports unlimited debits, bill payments and withdrawals. You can also withdraw cash without fees from over 3,400 CIBC ATMs.

But this account only pays limited interest, so you’ll need to open a High Interest Savings Account if you want to build your savings balance. This pays an introductory interest rate of 6% for the first 5 months before reverting back to a lower standard rate.

Meanwhile, sign up for a KOHO plan and you’ll get unlimited transactions, earn 5% interest on your balance, and get cash back on your spending. The cash back rate you get depends on the account plan you choose:

• Essential ($4 a month, but Earn Essential for $0 when you set up Direct Deposit or load $1000 per month): Earn 1% cash back on groceries, transportation, food, and drink – and collect 0.25% on everything else..
• Extra ($9 a month): 1.5% cash back return on special categories such as transportation, groceries and restaurants, and 0.25% cash back on all other purchases.
• Everything ($19 a month): 2% cash back on groceries, transportation, food and drink.

The blend of convenience and rewards sees KOHO take a narrow win here. But if you just want no-fee everyday banking, Simplii Financial is well worth a look.

Borrowing

Simplii Financial is a better choice than KOHO if you want to borrow money. It offers fixed and variable rate personal loans, secured and unsecured lines of credit, and fixed and variable rate mortgages with cash back offers.

And if you’re looking to fund your day-to-day spending, you could also consider the no-annual-fee Simplii Financial Cash Back Visa Card. This card has a 4-month introductory period when you can earn 10% cash back on eligible purchases, and it then reverts to paying:

• 4% cash back on restaurant, bar and coffee shop purchases
• 1.5% cash back on gas, groceries, drugstore purchases and pre-authorized payments
• 0.5 on all other purchases

KOHO also offers a couple of borrowing options. If you sign up for KOHO Cover for at least $2 a month, you can access an interest-free cash advance of up to $250. There are no credit checks to apply, and you get instant access to funds in the KOHO app or withdraw cash from an ATM. KOHO’s Credit Building service also allows you to improve your credit score by reporting your on-time repayments to Equifax.

But thanks to the wide range of products on offer, Simplii takes the win in this category.

Investing

KOHO doesn’t offer any investment products, but Simplii Financial does.

If you want to invest in a Simplii GIC, you’ll get APYs of up to 3.75% and terms ranging from 1 to 5 years. Simplii also helps you save for your retirement with RRSPs, earn tax-free interest and income in a TFSA, and invest in Conservative, Balanced and Growth mutual fund portfolios.

So if you want to invest to reach your financial goals, Simplii is a better choice.

Apps, features and more

Let’s compare Simplii vs KOHO across a few other key categories.

Savings interest rates

If you’re shopping around for the best promotional savings account interest rates, Simplii has got you covered. But if you just want to get an ongoing high rate of interest on your balance, KOHO is a better option.

The Simplii Financial High Interest Savings Account pays 6% interest for the first 5 months. After that, the rate you get will depend on your account balance:

• $50,000 or less: 0.35%
• $50,000.01 – $100,000: 0.35%
• $100,000.01 – $500,000: 0.8%
• $500,000.01 – $1,000,000: 1.45%
• $1,000,000.01 and up: 3.75%

Simplii’s US Dollar Savings Account has an interest rate of 3.05%.

Meanwhile, KOHO pays interest on your entire balance at a flat rate of 5%. So while Simplii is well worth a look if you’re happy to regularly switch banks looking for the best promo rates, KOHO is the better choice for savers who want to set and forget.

Mobile app

Simplii Financial and KOHO both offer user-friendly apps for managing your money. You can use the apps to check your balance, transfer funds, pay bills and send e-Transfers. You can also use the Simplii app to deposit cheques and find your nearest CIBC ATM, and you can use the KOHO app to check your credit score and cash back balance.

As of June 2024, the Simplii Financial app has received the following user reviews:

• 4.1/5 stars based on over 16,000 Google Play reviews
• 4.2/5 stars based on over 11,000 App Store reviews

The KOHO app has earned higher overall ratings than Simplii:

• 4.6/5 stars based on over 66,000 Google Play reviews
• 4.8/5 stars based on over 78,000 App Store reviews

Other features

What extra features do Simplii and KOHO offer as added perks for customers. One benefit worth mentioning is Simplii’s Global Money Transfer service, which allows you to send money to over 130 countries. There are no transfer fees, and you can send money to your recipient’s bank account, Visa debit or credit card, digital wallet or cash pickup location.

KOHO also offers a virtual card when you sign up for an account, so you can start spending instantly without having to wait for a physical card to arrive. The card can be used for in-store and online shopping.

How Simplii’s and KOHO’s fees compare

Simplii’s No Fee Chequing Account has no monthly fee and no minimum balance requirement, and it supports unlimited debits, bill payments and withdrawals. It also supports free Interac e-Transfers and provides fee-free access to over 3,400 CIBC ATMs. Overdraft protection is available as an optional extra and costs $4.97 per month, plus you’ll need to pay 19% interest on overdraft balances.

KOHO plans come with a monthly fee that ranges from $4 to $19. However, the Essential plan fee is waived if you set up a direct deposit or load at least $1,000 per month.

The KOHO Cover feature comes with an extra fee of at least $2 a month, and because KOHO doesn’t operate an ATM network, a $2–$3 fee may apply when you make ATM withdrawals.

What customers say about Simplii and KOHO

If you want to get in touch with Simplii Financial, 24-hour phone support is available. You can also log in to online banking to get live agent support 7 days a week, while a 24/7 virtual assistant is also available to help with common questions.

As of June 2024, Simplii has an average rating of 1.9/5 stars based on 605 Trustpilot reviews, while it has picked up some mixed feedback on the PersonalFinanceCanada Reddit. While it earns praise for its minimal fees and competitive rates, some complaints mention poor customer support and problems with having their account locked.

You can contact KOHO customer support by using in-app or web chat. As of June 2024, KOHO has earned an average rating of 1.4/5 stars based on 283 Trustpilot reviews and has garnered some negative reviews on the PersonalFinanceCanada Reddit. People who left positive KOHO reviews praised it for high interest rates, cash back earning potential and helping to improve their credit score, but those who left negative reviews sometimes mentioned disappointing customer support and account issues.

Final verdict: Simplii Financial wins

Simplii Financial simply offers a broader range of products than KOHO. So if you want no-fee daily banking, a cash back credit card, a personal loan or line of credit or even a mortgage, Simplii is the best choice.

But KOHO also has a lot to offer for anyone seeking a hybrid account. With convenient access to funds, a great interest rate and cash back earning potential, it might just be the right fit for you.

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Simplii Financial at a glance

Simplii offers no-fee day-to-day banking, a competitive promo savings rate and a decent selection of other banking products.

KOHO at a glance

KOHO’s hybrid spending and savings account combines convenient access to funds with interest- and cash back-earning potential.

Alternatives to Simplii Financial and KOHO

Not sure whether Simplii Financial or KOHO is the right choice for you?Consider some of the other best online banks in Canada as alternatives.

• EQ Bank. EQ Bank’s Personal Account pays up to 3.75% interest on your balance, 0.5% cash back on your purchases, and has no monthly or ATM withdrawal fees. Read our EQ Bank review to find out more.
• Wealthsimple. Wealthsimple offers a Cash account that pays 3.5% – 4.5% interest on your balance, while it also provides a stock, ETF and crypto trading platform. Check out our Wealthsimple review for more information.
• motusbank. motusbank is a digital bank that offers a no-fee chequing account, a high interest savings account, GICs and more. Read out motusbank review for the full details.