Challenger banks like Neo Financial and EQ Bank and financial technology companies like KOHO are changing the financial landscape for consumers.
They offer high-interest savings accounts with rates up to 125x what big banks offer, as well as multiple ways to save on banking fees.
For example, KOHO pays cash back on ‘debit’ purchases, and Neo Financial has a no-annual-fee cash back credit card and prepaid card.
This Neo Financial vs. KOHO comparison covers the basic things you need to know about them and how they stack against each other.
Neo Financial vs. KOHO
| Feature | KOHO | Neo Financial |
| Ownership | KOHO Financial Inc.; has a partnership with Peoples Trust and Mastercard | Independent fintech partnered with Concentra Bank and ATB Financial |
| Account Types | Easy, Essential, Extra and Everything plans | Hybrid, Savings (regular), Credit Cards (x2), Mortgages, Investments |
| Interest Rates | 5.00% | High interest on savings accounts; 0.10% interest on hybrid account balance |
| ATM Access | KOHO does not own ATMs | Use of ATMs within the Exchange Network |
| Monthly Fees | $0* for Essential account (paid options available) | No monthly fees for standard accounts; no annual fee for standard credit card (some paid options available) |
| Other Fees | KOHO Cover overdraft protection; ATM out-of-network fees; inactivity fee, FX fee | Printed statements, over the limit, rush replacement card, and FX fee |
| Credit Cards | Prepaid credit cards (KOHO Essential, KOHO Extra and KOHO Everything Prepaid Mastercard) | Neo Credit Card, Neo Secured Credit, Neo Money prepaid card |
| Mobile App | Yes, seamless and user-friendly with various tailored plans | Yes, modern and user-friendly |
| Customer Service | In-app or web chat support, KOHO’s web platform, Email, Phone | Chat, Email, Phone |
| Security | CDIC eligible | CDIC eligible |
| Rewards Program | Cash back on purchases | Cash back on purchases |
| Credit Building | KOHO Credit Building add-on | Neo Credit or Secured Card helps in credit building |
| Promotions | $20 bonus if you sign up using CASHBACK referral code and make your first purchase | $25 bonus when approved for the credit card; $5 bonus for Neo Money when you fund with $50 or more |
Neo Financial vs. KOHO: Financial Products
Below is a detailed comparison of the various financial products offered by Neo Financial and KOHO.
Neo Financial vs. KOHO: Prepaid Credit Cards
KOHO Mastercard: KOHO is a spending and savings account that also helps you monitor and build your credit. Its top features include:
- 1% unlimited cash back on groceries, restaurants and gas
- Up to 5% cash back at partner retailers
- Earn 5.00% interest on your entire balance
- $0* monthly fee
- Automatic savings using Roundups
- Free credit score checks
- 0% APR cash advances available in-app
- Budgeting app, and more
The low monthly fee is waived if you set up a recurring direct deposit, giving you free access to several premium perks.
KOHO Prepaid Mastercard
Rewards: Earn 1% cash back on groceries and transportation, up to 5% unlimited cash back at partner stores in Canada. Get 5% interest on your entire balance. Users also get access to a free budgeting app, 0% APR cash advances and free credit score checks.
Welcome offer: $20 sign up bonus after first purchase (use CASHBACK promo code during sign-up)
Interest rate fee: N/A
Annual fee: $0*
Neo Money Card: The Neo Money Card is a prepaid Mastercard that functions like a debit card and comes with no monthly fees, no preloading needed, and free unlimited transactions. It also offers instant cashback on transactions at Neo Money partners in its reward network.
Main cash back highlights for the Neo Money Card include:
- Up to 3% cash back on purchases at partner stores
- No monthly account fees
- Access to a high interest savings account
- $5 to $10 welcome bonus when you fund your new account with $50 or more (referral link above)
Neo Money card
Rewards: Earn up to 3% cash back at Neo partners.
Welcome offer: n/a
Interest rate fee: 0%
Annual fee: $0 (no monthly fees)
Neo Financial vs. KOHO: Credit Cards
The Neo Financial Credit Card has no annual fee and offers an average of 5% cash back at its partner stores. You can also apply for the Neo Secured Card if you have poor credit.
Neo Credit card
Rewards: Average of 5% cash back at 12,000+ partners.
Welcome offer: $25 welcome cash bonus.
Interest rates: 19.99% – 29.99% on purchases; 22.99% – 31.99% for cash advances.
Annual fee: $0 to $4.99 monthly
While KOHO does not offer a regular credit card, its reloadable prepaid credit card works like a credit card with cash back abilities and perks and is accepted anywhere Mastercard is accepted.
Neo Financial vs. KOHO: Savings Account
KOHO Earn Interest: This high-interest savings account pays up to 5.00% interest on your account balance (both spending and savings account.
Neo Financial High Interest Savings Account: The Neo HISA currently pays a 4.00% rate on your balance. This interest rate is calculated daily and paid out every month.
Neo Financial vs. KOHO: Credit Building
KOHO Credit Building: If you are looking to improve or rebuild your credit score, this service can help. KOHO Credit building is optional and costs $5 to $10/month. Reports are sent to the credit bureaus on your behalf.
Neo Secured Credit: Neo Financial helps build credit through products like the Neo Secured Credit, which is excellent for individuals new to Canada and those looking to build or establish credit.
KOHO vs. Neo Breakdown
Both KOHO and Neo Financial offer savings accounts and rewards cards. I break down their similarities and differences below:
Cash Back Rewards
A free KOHO Mastercard pays you up to 5% cash back when you make a purchase. This card works like a debit card, and you won’t need to worry about carrying a balance and incurring interest fees.
Neo Financial allows you to earn cash back using various cards, i.e. regular Neo Credit, Neo Secured Credit, and Neo Money prepaid card.
Savings Interest
Both KOHO and Neo Savings Accounts are competitive. KOHO’s interest rates are higher than Neo’s, and neither are “teaser” rates.
Convenience
They are both 100% digital, which means you can’t just walk into a branch to conduct in-person transactions. That said, you can reach their customer service support by email or chat. Neo Financial also offers phone support.
Referral Program
When you sign up for KOHO through a valid referral link and enter the CASHBACK referral code, you get a $20 welcome bonus. The bonus is paid after your first purchase.
Neo Financial also has a referral program with various rewards when you refer others.
Fees
A KOHO account is available at $0* monthly. Fees apply for additional services, such as credit building. The basic Neo Financial credit card account has no annual fee (the Neo Secured Card has a $60 annual fee).
The Neo Credit Card has a purchase interest rate of 19.99%-29.99% and a cash advance rate of 22.99%-31.99%. The Neo Money card does not charge interest.
Are they Safe?
Funds deposited in your KOHO Account are held at a Canada Deposit Insurance Corporation (CDIC)-member bank. They are thus eligible for CDIC protection for up to $100,000 per beneficiary.
Deposits in a Neo Savings account are held by Concentra, a CDIC member institution, and are also eligible for deposit protection.
Neo Financial Overview
Neo Financial is a newcomer to the digital banking scene in Canada. It was established in 2019 by two co-founders of SkipTheDishes, a food delivery service in Canada.
Headquartered in Calgary, AB, Neo has partnerships with Concentra Bank, ATB Financial and Mastercard.
Neo offers physical and virtual cards that are compatible with Google Pay and Apple Wallet. It also provides an app that monitors transactions and spending in real time.
KOHO Overview
Established in 2014, KOHO is a financial technology company that has partnered with Canadian bank Peoples Trust Company and the payment network Mastercard.
Toronto-based KOHO offers a no-fee spending account and a prepaid Mastercard that earns cash back on purchases. It offers both physical cards and virtual ones.
Neo vs KOHO: Which One To Choose?
You can have both accounts to maximize your cash back and savings.
Neo Financial offers credit and prepaid cards, making it easy to have all your cash back cards in one place. It also gives you access to a high interest savings account and a no-annual-fee credit card that offers guaranteed approval.
KOHO is versatile and can replace many of your banking needs, including high interest savings and debits. The Extra (premium) account also waives FX fees.
Related:
I’m pretty sure Neo has a preloaded money card option because I have one lol
@Sarah: Ah, you are right. The Neo Money card was introduced recently. We have updated the article to reflect this.
Koho provides a Mastercard these days, and has requested all Koho Visa holders to replace it with a Mastercard free of charge as well.
@Anirudh: Good point. We are now updating our content to reflect this change. Cheers.