KOHO and motusbank are popular among Canadians looking to lower their banking fees. They are also well known for offering above-coverage interest rates on savings.
While KOHO is a financial technology, i.e. fintech, motusbank is a full-fledged online bank.
This KOHO vs motusbank comparison covers their product offerings, pros, cons, fees, and everything else you need to choose between them.
KOHO vs motusbank
This guide compares both financial institutions and what they provide for everyday banking services, including:
- Chequing accounts
- Savings accounts
- Investments
- Credit Cards and Loans
- Fees
- Security
- Customer service and more
What is KOHO?
KOHO is a fintech that is changing how Canadians spend and save money. It offers a variety of financial products, including a hybrid spending and savings account, a prepaid Visa card, a budgeting app, and a credit-building service.
It also offers Instant Pay to employers who want to give their employees on-demand access to their paycheques.
Learn more in this detailed KOHO review.
What is motusbank?
motusbank is an online-only bank operated by Meridian Credit Union, the largest credit union in Ontario.
It was established in 2019 and joins the likes of AcceleRate Financial, Hubert Financial, and Achieva Financial as an online bank owned by a credit union.
Motusbank offers a variety of accounts, including chequing, savings, GICs, investing, mortgages, and personal loans.
Learn more in this motusbank review.
KOHO vs. motusbank: Everyday Banking
Both KOHO and motusbank provide accounts you can use for your everyday transactions, i.e. bill payments, pre-authorized debits, Interac e-Transfers, withdrawals, and more.
KOHO: Spending and Savings Account
When you sign up for KOHO, you get a free hybrid account with features for both chequing and savings accounts.
You can make and receive payments, send money, add funds, pay bills, deposit your paycheque, and more.
This free account also pays a high interest rate on your balance.
You can also access up to $100 from your paycheque up to 3 days early for free.
New KOHO clients get a $20 bonus after loading their accounts and making their first purchase (promo code CASHBACK).
KOHO Prepaid Mastercard
$20 welcome bonus after first purchase (use CASHBACK promo code during sign-up)
$0 monthly fee
Earn up to 5% unlimited cash back
Get 3% savings interest on your balance
Unlimited Interac e-Transfers and debit transactions
Free budgeting app and access to credit building
motusbank: Chequing and Savings Account
The motusbank no-fee chequing account comes with unlimited transactions, including debit purchases, bill payments, and Interac e-Transfers.
You can deposit cheques using the mobile app and get free access to thousands of ATMs across Canada via THE EXCHANGE Network.
For its general savings account, motusbank pays a competitive interest rate. You can also open TFSA and RRSP Savings accounts.
Verdict: For a chequing account that includes paper cheques and free ATMs, motusbank works better. For a general spending account that doubles as a competitive savings account, KOHO is a better choice.
KOHO vs motusbank: Credit Cards
Neither KOHO nor motusbank offers a credit card. That said, you can use the KOHO Visa Card at millions of locations worldwide, earn cash back, and pay for a credit-building product if needed.
KOHO: Reloadable Visa Card
The KOHO Prepaid Card is the top cash back prepaid card in Canada.
The regular card has no fees, and you get:
- Up to 5% cash back at partners
- Automated savings via RoundUp
- A virtual card and a physical card
- Budgeting app and expense tracker
- No monthly fees
For even higher cash back rewards, you can upgrade to KOHO Premium for an $84 annual fee and earn 2% cash back on transportation, restaurant, and grocery purchases.
Premium also waives FX fees when you spend abroad, and you get free financial coaching and price matching.
You can add KOHO Credit Building to your account for $7 per month if you want to use the card to build your credit history.
motusbank: Credit Card
motubank does not offer a credit card.
If you have a motusbank chequing account, you get a debit card you can use at ATMs, POS, and for online transactions.
Verdict: The KOHO prepaid card is great for earning cash back, and you can also scale it to grow your credit score.
KOHO vs. motusbank: Investments
motubsbank offers Guaranteed Investment Certificates (GICs) you can hold in registered and non-registered investment accounts.
The minimum investment for GICs is $100, and their terms range from 30 days to 5 years.
It has also partnered with Qtrade Direct Investing and Virtual Wealth to offer self-directed and robo-advisor services respectively.
KOHO does not offer investments.
Verdict: motusbank works better if you want access to GICs.
KOHO vs. motusbank: Loans
Motusbank customers can access a home equity line of credit (HELOC) and mortgages. Both variable and fixed mortgages are available, with terms from 6 months to 5 years.
KOHO does not offer lending products.
Verdict: motusbank works better if you want access to a HELOC or mortgage.
Other Factors To Consider
Fees
motusbank has some fees you should watch out for:
- Request Interac e-Transfer: $1.25
- Send Interac e-Transfer (savings account): $1.25
- Paper statement: $2.00
- ATM transaction (outside of free ATMs): $2 – $5
- Foreign debit transaction surcharge: 2.50%
For KOHO, you pay fees for these services:
- KOHO Premium: $9/month or $84/year
- Credit building: $7/month
Convenience
Both motusbank and KOHO are online-only financial institutions that do not offer in-person support.
You can access their customer service via phone, email, or chat.
Security
Your deposits at both KOHO and motusbank are protected up to $100,000 per insured category by the Canada Deposit Insurance Corporation (CDIC).
Promotions
When you open a KOHO account here, you get a $20 bonus after activating your card and making your first purchase.
motusbank does not offer a welcome bonus.
Pros and Cons of KOHO
Pros:
- No monthly fee for a regular account
- 0.50% to 5% cash back on purchases
- Unlimited debits, bill payments, and Interac e-Transfers
- Accepted worldwide
- Free access to early payroll
- Top-rated budgeting app
- High-interest savings accounts
- Welcome bonuses and referral program
Cons:
- Does not offer mobile cheque deposits
- Does not have its own ATMs
Pros and Cons of motusbank
Pros:
- Free chequing account with lots of features
- High-interest savings account
- Access to free ATMs
- Offers multiple banking products
Cons:
- No credit card
- Limited investment options
KOHO vs. motusbank: Summary
Choose KOHO if you want a free prepaid card that earns cash back at a competitive rate. It can also help you with credit building if you add this optional subscription.
For a robust chequing account solution without the monthly fee, you can use motusbank or the Simplii no-fee chequing account ($400 welcome offer).
While KOHO takes the edge, both KOHO and motusbank offer good savings accounts with above-average non-promotional rates.
An effective combination of both accounts is possible, with motusbank saving you on monthly chequing fees, and KOHO helping you earn cash back and competitive savings rates.
Related:
