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EQ Bank Mastercard vs. KOHO Prepaid Mastercard 2024

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The EQ Bank Card and KOHO Prepaid Mastercard are two of the best prepaid cards in Canada.

If you want to save on bank transaction fees and earn rewards while using a debit card, KOHO and EQ Bank’s financial accounts are excellent choices.

This EQ Bank vs. KOHO comparison looks at their cash back offerings, savings, rates, fees, perks, and downsides.

EQ Bank vs. KOHO Overview

EQ Bank

EQ Bank is an online bank owned by Equitable Bank, the seventh-largest bank in Canada.

It has over $7 billion in deposits and serves more than 290,000 customers.

EQ Bank offers various accounts, including savings, Guaranteed Investment Certificates (GICs), international money transfers, and mortgages.

KOHO

KOHO is a financial technology company founded in 2014. It is affiliated with Peoples Trust and offers several prepaid cards and a credit-building program.

As of this writing, it serves over 500,000 Canadians.

EQ Bank Card vs. KOHO Mastercard

FeaturesEQ Bank CardKOHO Easy MastercardKOHO Essential MastercardKOHO Extra Mastercard
Monthly fee$0$0$4$9
Sign up bonusNone$20 bonus$20 bonus$20 bonus
# of transactionsUnlimitedUnlimitedUnlimitedUnlimited
Cash back rewards0.50% cash back on all purchases1% cash back on groceries and transportation 1% cash back on groceries, gas, and restaurants; 0.25% cash back on everything else 2% cash back on groceries, gas, transportation, and restaurants; 0.50% on everything else
Savings interest rate2.50%0.50%VariesVaries
ATM fees in CanadaNone (reimburses fees charged by other operators)None from KOHONone from KOHONone from KOHO (reimburses one international ATM monthly)
FX fees0%1.5%1.5%0%
Quebec?NoYesYesYes
Optional credit buildingNoYes ($10/month)Yes ($7/month)Yes ($7/month)
Learn moreApply

EQ Bank Card Explained

EQ Bank Card

eq bank card-img

Earn up to 4%* interest on your balance

0.50% cash back on purchases

No monthly account or FX fees

Free ATM withdrawals

The EQ Bank Card was launched in January 2023 and offers these benefits:

No Monthly Fee: There is no account maintenance fee, and you can sign up for a free card by opening an EQ Bank Savings Plus Account.

Earn Interest: Your card balance earns interest at a rate of 2.50%, which is one of the highest savings rates in Canada. This interest is calculated daily and paid monthly.

Earn Cashback: The EQ Bank Mastercard pays 0.50% cash back on all purchases. This makes it a top no-fee cash back card.

Free ATM Withdrawals: You can make withdrawals at any ATM in Canada. If the ATM provider charges a fee, EQ Bank will reimburse you within ten (10) business days.

No Foreign Currency Conversion fee: The foreign currency conversion charge that costs up to 3% is waived when you make payments in a different currency. You also earn cash back on foreign currency purchases.

Unlimited Reloads: This reloadable prepaid card can be used indefinitely. To load funds, simply transfer cash from your savings account.

Note: This card is not available in Quebec.

KOHO Prepaid Mastercard Explained

KOHO has three prepaid cards:

  • KOHO Easy Mastercard
  • KOHO Essential Mastercard
  • KOHO Extra (Premium) Mastercard

Only the KOHO Easy Mastercard has no monthly fees. The other two charge a fee for extra perks.

KOHO Easy Mastercard

KOHO Easy Prepaid Mastercard

KOHO Mastercard Prepaid Card 2

$20 sign up bonus after first purchase (use CASHBACK promo code during sign-up)

Earn up to 5% unlimited cash back

3.00% savings interest on your entire balance

Free budgeting app

$0 monthly fee

This no-fee prepaid card offers these benefits:

  • 1% cash back on grocery and gas purchases.
  • Earn 0.50% interest on your entire balance.
  • Access to a budgeting app with automated savings plans.
  • Virtual and physical cards.
  • Access to an optional credit-building program that costs $10/month.

KOHO Essential Mastercard

KOHO Essential Prepaid Mastercard

KOHO Mastercard Prepaid Card 2

$20 sign-up bonus after first purchase (use CASHBACK bonus code)

Earn up to 5% cash back on purchases

Earn 5% interest on your balance

$4 monthly fee

This card has a $4 monthly fee ($48/year) and comes with a 30-day free trial. It offers the following:

  • 1% cash back on groceries, bills, eating and drinking, and 0.25% cash back on all other purchases.
  • Earn interest on your entire balance.
  • Access to credit building for $7/month (optional).

KOHO Extra Mastercard

KOHO Extra Prepaid Mastercard

KOHO - MasterCard - Premium card

$20 sign up bonus after first purchase (use CASHBACK promo code during sign-up)

Earn up to 5% cash back

Savings interest on balance

Unlimited transactions, no FX fees

$9 monthly fee

The KOHO Extra Mastercard costs $9 monthly ($84 annually), and it includes:

  • 2% cash back on groceries, transportation, and restaurants, plus 0.5% cash back on all other purchases.
  • 0% FX fees (a savings of up to 3%)
  • One free international ATM withdrawal monthly
  • Earn interest on your entire balance
  • Optional credit building at $7/month

EQ Bank Card vs. KOHO Mastercard: Which is Better?

If you already have an EQ Bank Savings Plus Account for its solid non-promotional (i.e. not short-lived) interest rates, getting the EQ Bank Card is a no-brainer.

This card wins this comparison overall with no maintenance fees, 0.50% cash back on all purchases, high-interest savings rates on balances, no ATM fees, and no FX fees when spending abroad. To be frank, it is tough to beat this combination!

If you do not want to open another “bank account,” KOHO is a good prepaid card from a non-bank institution.

With the free KOHO Easy Mastercard, you earn 1% on groceries and gas. This card also pays interest on your balance, which is a rare perk.

Other considerations: The KOHO Mastercard and EQ Bank Card are not credit cards and do not impact your credit score directly. That said, if you want to improve your credit score or establish a credit history, KOHO’s credit building program makes it easy.

So, which is better? It depends. I find it useful to keep both in my wallet.

Best Credit Offers in March 2024

Get the top savings and spending account and stop paying costly bank fees ($20 Bonus)

Save on fees and access unlimited transactions, eTransfers & bill payments.

Get a $20 instant bonus after completing your first purchase.

Earn up to 5% unlimited cash back and up to 5% interest on your balance.

Guaranteed instant approval with any credit score + free budgeting app.

Get this guaranteed approval credit card for any credit score ($25 bonus)

Get an instant $25 welcome bonus.

Earn 5% unlimited average cash back at thousands of locations.

Guaranteed approval for poor and bad credit scores. Takes 3 minutes.

No monthly fees and up to 15% cashback on your first-time purchases.

Earn an average 5% cashback while growing your balance + $20 bonus

Best free prepaid reloadable Mastercard with $20 bonus (after adding $50+).

Earn an average 5% unlimited cash back at over 12,000 stores.

No credit check and free budgeting app with automatic savings features.

Earn 2.25% interest on your entire balance.*

Author

Gravatar for Enoch Omololu, MSc (Econ)
Enoch Omololu, MSc (Econ)

Enoch Omololu, personal finance expert, author, and founder of Savvy New Canadians, has written about money matters for over 10 years. Enoch has an MSc (Econ) degree in Finance and Investment Management from the University of Aberdeen Business School and has completed the Canadian Securities Course. His expertise has been highlighted in major publications like Forbes, Globe and Mail, Business Insider, CBC News, Toronto Star, Financial Post, CTV News, TD Direct Investing, Canadian Securities Exchange, and many others. Enoch is passionate about helping others win with their finances and recently created a practical investing course for beginners. You can read his full author bio.

About Savvy New Canadians

Savvy New Canadians is one of Canada's top personal finance platforms. Millions of Canadians use our site each year to learn how to save for retirement, invest smartly, maximize rewards, and earn extra cash. We have been featured in prominent finance media, including Forbes, Globe and Mail, Business Insider, CBC, MSN, Wealthsimple, and TD Direct Investing. Learn more about Savvy New Canadians.

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2 thoughts on “EQ Bank Mastercard vs. KOHO Prepaid Mastercard 2024”

  1. Gravatar for Purple

    Hi there, I am considering getting the EQ card for use on vacation overseas, so I can avoid foreign exchange fees. I have read reviews of other cards (like Brim) where the cardholder has had it rejected by businesses and hotels while out of country. Have you heard about any issues with users having the EQ card rejected in other countries? I cannot find many user reviews because it is so new! Thanks from a fellow Manitoban!

    • Gravatar for Enoch Omololu, MSc (Econ)

      @Purple: I haven’t used the card abroad myself and can’t say. It’s very new, so it may take a while to see such reviews. Since it is kinda like a “prepaid” card, it is possible some merchants may not accept it. For example, I was able to use the Wise debit Visa abroad (Europe) without issue in most places, but it did not work at some tolls. Cheers.

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