KOHO has revolutionized how we think about prepaid cards. Since the introduction of the KOHO prepaid card, Canadians can now earn cash back when they spend cash…as opposed to using rewards credit cards and the interest fees that come with them.
The KOHO app is versatile, serving as a budgeting app, a roundup saver, and a spending account all in one place.
KOHO has gotten even better since it now pays customers interest on their account balance. This KOHO Earn Interest (KOHO Save) review covers how it works.
KOHO Overview
KOHO is a reloadable Mastercard prepaid card (formerly KOHO Visa) and app designed to help Canadians improve their finances.
The KOHO Mastercard works like a chequing account. You can fund and use it for purchases and bill payments, similar to a debit card.
Unlike a traditional debit card, however, you earn cash back on every dollar you spend using your KOHO prepaid Mastercard.
Here’s a detailed KOHO review.
Some of the benefits offered by KOHO are:
- Cash back on your purchases.
- Automatically save your spare change using the Roundup function.
- Earn interest on your entire account balance.
- A versatile app and card you can use to pay your bills, send free e-Transfers, shop online, withdraw money from an ATM, and budget your finances.
- Joint spending account.
- Extra cash back at select partners.
- Apple Pay compatibility.
- Your funds are held by a CDIC-insured Canadian bank.
- Free financial coaching.
- No foreign exchange transaction fees when you spend money abroad (KOHO premium).
What is KOHO Earn Interest?
KOHO recently upped the ante by paying its customers interest on their balances. This new feature pays you interest on every dollar held in your KOHO account. The rate you earn depends on your account type.
The savings rates on this hybrid account are competitive compared to the 0% interest rates many big banks offer on their chequing accounts.
KOHO essentially converts your account into a high-interest savings account with unlimited debit transactions.
Benefits of KOHO Earn Interest
- Earn non-promotional interest rate on your account balance.
- No monthly fees or minimum balance.
- Interest is calculated daily and paid out monthly.
- Funds are held at a CDIC-insured financial institution.
Interest earned in your account is calculated daily and paid directly to your account monthly.
When you add in the regular cash back earn rate of up to 1% on purchases, KOHO becomes a super-charged savings package!
The KOHO interest rate applies to your spendable, roundups, and savings goals.
Neo Money Account
Unlimited 5% average cash back
No monthly fees + $20 bonus
2.25% non-promo interest rate paid on balance
Unlimited free transactions
Get a Mastercard for payments online and ATMs
Access to a no-annual-fee credit card
Is KOHO Free?
KOHO offers five types of accounts – KOHO Easy, KOHO Essential, KOHO Joint, KOHO Premium (now KOHO Extra), and KOHO Everything.
The regular and joint accounts have no monthly fees and give you 1% cash back on groceries and transportation.
KOHO Essential pays 1% cash back on groceries, dining in or out, transportation, and 0.25% instant cash back on all other purchases. This plan costs $4 monthly.
KOHO Extra offers all the benefits of a basic account and 2% cash back on transportation, groceries and restaurant purchases. You also enjoy 0% FX fees, 1 free international ATM withdrawal monthly, and price matching. KOHO Extra costs $9 per month or $84 per year.
KOHO Everything has a $19 monthly fee and includes additional perks.
Are KOHO Accounts Safe?
Your KOHO account funds are held in trust at a CDIC member bank.
Cash deposits in your savings and chequing accounts at a CDIC-member institution are insured up to $100,000 per eligible category.
Is KOHO Right For You?
If you want to minimize using credit cards while still earning rewards, you will find KOHO a great option.
KOHO can help you save money even if all you can afford is to set aside your spare change.
With the KOHO Earn Interest feature, you not only earn cash back, but you also earn a competitive interest rate on your entire account balance.
Related:
