KOHO account review: A savings and spending account

What is a KOHO account?

A KOHO account is a hybrid account for spending as well as saving. Think of it as a cross between a chequing account and a savings account.

Like a chequing account, you can use a KOHO account to get your pay direct deposited, to pay bills and to send e-Transfers. It comes with a prepaid reloadable Mastercard too, which you can use to pay for in-store and online purchases, earn cash back and withdraw cash at ATMs.

At the same time, the KOHO savings account pays a high interest rate on your entire balance. The interest rate you get varies depending on the KOHO plan you sign up for, but you can earn interest of up to 4%.

How does the KOHO savings account work?

When you open a KOHO account, you’ll need to choose the plan you want — Essential, Extra or Everything. Each plan offers a physical card as well as a virtual one, supports unlimited transactions and e-Transfers, and can be managed via a user-friendly mobile app.

Each plan also comes with a monthly fee, and the higher the fee, the more perks and better rewards you get. Essential is the entry-level plan and comes with a $4 monthly fee, but the fee is waived if you meet a monthly deposit requirement. Essential pays 2.5% interest on your savings as well as 1% cash back on groceries, transportation, and eating and drinking purchases.

But if you want a higher interest rate on your KOHO savings account, you’ll need to upgrade to the Extra plan ($12 per month when billed yearly or $18 billed monthly) to earn 3% interest or the Everything plan ($14.75 per month when billed yearly or $22 billed monthly) to earn 4% interest.

These higher-level plans also offer higher cash back rates and other perks like 1 free international ATM withdrawal per month and no foreign transaction fees.

Check the table below to find out how the 3 KOHO plans stack up side-by-side.

What we like about the KOHO savings account

Earn up to 4.00% interest

Depending on the plan you choose, you can earn 2.5% – 4.00% interest on your KOHO savings account. That makes this account a competitive choice when compared to other top high interest savings accounts, allowing you to reach your savings goals sooner.

RoundUps, Savings Goals and Vaults

Your KOHO account includes a range of features designed to help you build your savings balance. RoundUps allow you to round up KOHO card purchases to the nearest $1, $2, $5 or $10, with the rounded-up amount tucked away in your savings. You can also set savings goals and create savings plans to help you realize them, plus set money aside in Vaults to make sure you have funds you can call on for a rainy day.

CDIC insured

The interest-earning balance in your KOHO account is covered by the Canada Deposit Insurance Corporation. Up to $100,000 you deposit is protected by CDIC insurance.

Highly rated mobile app

The KOHO app has picked up tens of thousands of five-star reviews from both iOS and Android users. The user-friendly app presents a streamlined interface and makes it easy to track your spending and manage your money.

Flexibility and cash back

A KOHO account isn’t just for saving. You can also use it to get your regular paycheque, pay bills, send e-Transfers and manage your everyday banking tasks. You can also earn up to 2% cash back on your spending, providing an alternative way to build your savings balance.

What are the downsides?

Monthly fees

You have to pay a monthly fee on two out of KOHO’s three monthly plans. And if you want the highest savings interest rate, you’ll need the $14.75/month Everything plan. This means fees will chip away at your balance each month.

If your main goal is to save money, you might want to consider the best high interest savings accounts with no monthly fees instead.

No cheques

There’s no option to deposit cheques into your KOHO savings account. So if you receive a cheque, you’ll need to deposit into a separate chequing account and then transfer those funds over to your KOHO account. However, KOHO plans to add support for cheque deposits in the future.

No ATM network

KOHO doesn’t operate an ATM network. If you withdraw cash at an ATM using your KOHO card, the ATM operator may charge you an out-of-network withdrawal fee of around $2 – $3.

No physical branches

KOHO is a financial technology company and doesn’t operate any physical branches. So if you want the convenience of being able to visit a branch and access face-to-face customer service, you may prefer a traditional bank.

Can’t receive wire transfers

KOHO savings accounts are unable to receive wire transfers. You’ll need to use other payment methods to deposit funds into your account.

KOHO savings account fees and access

How does KOHO compare to other savings and spending accounts in Canada?

KOHO is far from the only provider in Canada that offers a savings and spending account.

The EQ Bank Personal Account is a popular alternative. It pays 1.25% interest as standard, but you can get a bonus 2.75% interest for 12 months when you get your pay direct deposited into the account. But you also get unlimited transactions, fee-free ATM withdrawals across Canada, 0.5% cash back on your purchases and no monthly fee. Learn more about the pros and cons in our KOHO vs EQ Bank guide.

Another KOHO competitor well worth checking out is the Wealthsimple Cash Account. It has no monthly fee, pays 2% - 3.25% interest and also pays 1% cash back on card purchases. However, it’s worth mentioning that you’ll need at least $500,000 in assets with Wealthsimple to earn the maximum available interest rate.

Finally, the PC Money Account is another worth adding to your shortlist of options. With 3.5% interest on your savings, no monthly fee, and the ability to earn PC Optimum reward points on your spending and other everyday transactions, it’s also a competitive choice.

Does the KOHO account come with a debit card?

No. While the card linked to your KOHO account works very similarly to a debit card, it’s actually a reloadable prepaid Mastercard. You can use your KOHO card to pay in-store and online anywhere Mastercard is accepted, plus withdraw cash at ATMs, but you’ll need to load money onto the card first.

Does KOHO offer a joint account?

Yes, KOHO does offer joint accounts. A joint account allows you and one other person to manage your money together.

You can use a KOHO joint account to perform all the same transactions that you can with a regular KOHO plan. You can get paid, pay bills, send e-Transfers and load money onto your prepaid Mastercard for spending.

Once again, the interest rate that applies to your balance depends on the plan you choose, and this also affects the cash back rate on purchases.

Are my deposits in the KOHO savings account CDIC insured?

Yes, the money you deposit in your account that earns interest is eligible for CDIC protection. KOHO itself is not a CDIC member, but it partners with Peoples Trust, a federally regulated bank. Once you opt in to Earn Interest, the balance from your account is held in trust at Peoples Trust, which is a CDIC member. This means up to $100,000 you deposit will be covered by CDIC insurance.

How to send money to a KOHO account

There are four ways to deposit money with KOHO Earn interest.

1. e-Transfer

You can deposit funds via e-Transfer by completing these steps:

1. Log in to the KOHO app.
2. Tap “Add money”, then “e-Transfer” and “KOHO (Instant)”.
3. Copy your e-Transfer email address.
4. Log in to online or mobile banking and select the account from which you’ll be transferring funds.
5. In the e-Transfer section, create a new contact for KOHO and paste your e-Transfer email address.
6. Transfer the funds.

2. Debit card

You can use a debit card to load funds to your KOHO savings account. Here’s how:

1. Log in to the KOHO app.
2. Tap “Add money” and then “Debit card”.
3. Enter the amount you want to load.
4. Take a photo of the card and upload it or manually enter your card details. Alternatively, you can pay by selecting the Apple Pay logo.
5. Confirm the card details and amount.

3. Direct deposit

Here’s how to get your pay direct deposited into your KOHO account:

1. Log in to the KOHO app.
2. Tap “$” and then “Set up direct deposit”.
3. Download the direct deposit void cheque.
4. Ask your payroll department to have your paycheque deposited to the account details shown on your void cheque.

4. Cash

You can deposit cash into your KOHO account in a few simple steps:

1. Log in to the KOHO app and navigate to the “$” section.
2. Tap “Add money”, “Add cash” and then “Find your nearest Canada Post location”.
3. Take your cash and government-issued photo ID to your closest Canada Post location.
4. Show the unique QR code to a Canada Post employee and hand over your cash deposit.

How do I withdraw money from KOHO Earn Interest?

If you want to withdraw cash using your KOHO prepaid card, you’ll need to use an ATM on the Cirrus network that supports Mastercard withdrawals. However, as KOHO doesn’t have its own ATM network, you may be charged around $2 to $3 by the ATM operator for the transaction.

You can also withdraw money from your KOHO account by sending an e-Transfer, transferring money to a bank account, or sending money to another KOHO account. To do so, log in to the KOHO app and tap “Send money”, then follow the instructions for the transfer method you want.

KOHO reviews and ratings

Customer reviews for KOHO are mixed, and the average rating for this Canadian fintech varies greatly depending on where you look. Head to the Android or iOS app stores and you’ll see that the KOHO app has picked up tens of thousands of five-star reviews.

But if you see what customers have to say on sites like Trustpilot and the Better Business Bureau, the average review score is much lower.

Positive KOHO reviews mention factors such as the user-friendly app, the cash back rewards and the ability to earn a high interest rate on your entire savings balance. Negative reviews mention disappointing service and customers reporting issues with getting locked out of their accounts.

What do people on Reddit say?

Feedback for KOHO on the PersonalFinanceCanada Subreddit is similarly mixed. On the positive front, users praise KOHO’s high interest rates, cash back earning potential and ease of use. But poor customer service seems to be a common complaint in negative reviews, while some other users mention their KOHO account displaying an inaccurate balance.

How to close a KOHO account

If you want to close or delete your KOHO account, here’s what you need to do:

1. Withdraw or transfer all funds out of your KOHO account.
2. Open a live chat with KOHO customer support and ask to close your account.
3. Follow the instructions provided.

Bottom line

If saving money is your only goal, you might be better off looking past KOHO Earn Interest to other high interest savings accounts that don’t charge monthly fees.

But if you want to earn interest on your balance and get unlimited transactions plus cash back on your spending, then a KOHO account might be a good fit for you. You’ll need to see how it stacks up against other hybrid accounts like the EQ Bank Personal Account, Neo Everyday Account and Wealthsimple Cash Account before deciding which is the right choice for you.