Credit card Koho

Koho markets itself as a no-fee alternative to traditional banks: prepaid Mastercard access, cashback rewards, and higher interest on savings. For many Canadians it has been a refreshing change from big-bank friction. After extensive real-world use spanning several years, the picture is clear — Koho offers a lot of everyday value, but it is not a drop-in replacement for a full-service bank.

What Koho Actually Is

Koho is a fintech financial account paired with a prepaid Mastercard and a suite of budgeting tools. It behaves like a bank for most day-to-day needs: direct deposit, e-transfers, instant virtual cards, automated savings goals, and cashback on purchases. However, Koho is not a bank itself. Customer deposits are CDIC insured through a partner bank (People’s Trust) and card spending runs on the Mastercard network.

Standout Features

• No monthly fee option — The Essential plan is free if account criteria are met.
• Cashback on purchases — Up to 2% on general spending and up to 5% at select merchants depending on plan level.
• High interest on balances — Money held inside Koho earns a higher interest rate than most big banks, and interest is paid on balances across spendable and savings spaces.
• Automated savings and round-ups — Create savings goals, schedule automated deposits, and enable round-ups for effortless saving.
• Joint accounts with individual cards — Useful for couples: a shared pot for household spending while each person keeps their own card.
• Instant sign up and virtual card — No credit check required for basic accounts; approval and a virtual card can be immediate.
• Premium perks — Higher cashback, better interest and zero foreign transaction fees on paid plans.

Koho pays interest on all the money you hold within the app — whether it’s in a savings goal, your spendable balance, or a joint account.

Pricing and Plans

The Essential package is the free tier, though it requires account criteria to be eligible. Paid tiers charge a monthly fee and increase the value proposition: higher cashback rates, higher savings interest, and benefits such as zero foreign transaction fees. One notable limitation today is that joint accounts are restricted to the free plan only; paid-tier pricing is not yet available for joint accounts.

Major Drawbacks to Consider

• No mobile cheque deposits — There is no ability to deposit paper checks by taking a photo. This is a common banking convenience that Koho does not yet offer.
• No bank drafts or money orders — Large transactions that require a bank draft or certified funds (for example closing costs or large down payments) cannot be completed through Koho.
• Savings cannot be locked — The spending balance can dip into the savings balance, which can lead to negative spendable balances. There is no simple “lock this vault” feature to prevent accidental spending out of savings.
• Feature stagnation recently — Early years brought frequent improvements; updates have been slower over the past few years aside from a rebrand.
• Not a bank — yet — Koho relies on partner institutions for deposit insurance and card rails. They are pursuing becoming a regulated bank, which would change the product in meaningful ways if completed.

How Koho Compares to Big Banks

For everyday banking tasks, Koho often beats big banks on user experience: cleaner apps, instant virtual cards, automated savings tools, and better interest on idle cash. The cashback and round-up features are designed to encourage saving while spending.

However, big banks still hold advantages for services that Koho lacks: branch access, mobile cheque deposits, bank drafts and money orders, and certain large-value transaction capabilities. For customers whose financial life requires those features, Koho cannot fully replace a traditional bank.

Final Recommendation

Koho is a compelling, low-cost alternative to traditional banking for many Canadians. It shines for everyday spending, goal-driven saving, and delivering higher interest than most big banks. The joint account setup is particularly handy for household finances. However, limitations around cheque deposits, certified funds, and the inability to lock savings means Koho will not replace a full-service bank for everyone.

For someone who wants a modern, feature-rich spending and saving app with excellent cashback and interest benefits, Koho is worth trying alongside a primary bank. For those with complex banking needs or frequent large transactions, Koho is a strong complement but not a complete substitution. If Koho finishes its transition to a regulated bank in the future, it could become an even stronger contender.