KOHO has revolutionized how we think about prepaid cards. Since the introduction of the KOHO prepaid Visa in 2017, 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 very versatile, serving as a budgeting app, a roundup saver, and a spending account all-in-one place.
KOHO has gotten even better with KOHO Save, a new feature that pays you high-interest rates (over 2%) on your account balance and is expected to launch this Spring.
While there are other prepaid cards like STACK and Mogo, KOHO is the only prepaid card to offer interest on your balance in Canada.
What is KOHO?
KOHO is a reloadable Visa card and app that is designed to help Canadians improve their finances.
KOHO Visa works like a chequing account that you fund and use 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 Visa card.
Some of the benefits offered by KOHO are:
- Cash back on all your purchases (0.50% to 2.0%).
- Automatically save your spare change using the Roundups function.
- KOHO Save and 2% interest on your account balance.
- No monthly account fees (not applicable to KOHO premium).
- 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.
- Extra cash back (1% for 90 days) for every friend you refer to KOHO.
- A swanky limited edition KOHO metal card.
- 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).
- Price matching (KOHO premium).
Open a KOHO account and enter promo code CASHBACK to get an extra 1% cash back for 90 days.
What is KOHO Save?
KOHO recently upped the ante with KOHO Save. This new feature is expected to pay you more than 2%* interest on every dollar held in your KOHO account.
This is a big game-changer if you ask me, considering that you rarely find a 2% savings account in Canada these days, let alone earn 2% on a chequing account.
KOHO Save will essentially convert your account into a high-interest savings account just for opting in.
Benefits of KOHO Save
- Over 2% 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 CDIC-insured Schedule I banks.
To benefit from the maximum interest rate, you will need to set up at least one direct deposit to your KOHO account. Examples of eligible direct deposits include:
- All or a portion of your paycheque
- Government cheques e.g. childcare, disability, Trillium benefit, etc.
- PayPal and Stripe deposits
Even if you do not set up a direct deposit, the current information available is that you will still enjoy a savings interest rate of 1.20% on your entire KOHO balance when you opt-in for KOHO Save!
Interest earned in your account is calculated daily and paid out directly to your account every month.
When you add in the regular cash back earn rate of 0.50% to 2% on every purchase, KOHO becomes a really super-charged package of savings!
Is KOHO Free?
KOHO offers three types of accounts – KOHO basic, KOHO Joint and KOHO Premium.
The basic and joint accounts have no monthly fees and give you 0.50% cash back on all purchases. It also offers automatic savings (Roundups).
KOHO premium 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 every month and price matching.
KOHO premium costs $9 per month or $84 per year.
Is KOHO Right For You?
If you want to minimize your use of credit cards while still earning rewards, you will find KOHO to be the perfect alternative.
KOHO can help you save money even if all you can afford is to set aside your spare change.
With KOHO Save, you not only earn cash back, but you also earn a competitive interest rate on your entire account balance.
You can increase your cash back earnings by 1% when you sign up and enter the promo code CASHBACK.