KOHO vs Neo: 2025 Comparison

Both KOHO and Neo Financial have emerged as popular alternatives to traditional banking in Canada, offering cash back rewards, competitive interest rates, and modern digital banking features.

But which one is the better choice for your needs?

In this comprehensive comparison, we'll examine KOHO and Neo Financial across key categories including cash back rates, interest on savings, credit building, foreign exchange fees, and more.

What is KOHO?

KOHO is a Canadian fintech company that provides a Prepaid Mastercard designed to navigate your finances while helping you save, spend, and build credit.

KOHO operates entirely through its mobile app, offering a streamlined banking experience without the complexity of physical branches or hidden fees.

What is Neo Financial?

Neo Financial is a Calgary-based fintech company that offers both credit cards and high-interest savings accounts.

Founded in 2019, Neo has quickly gained popularity by partnering with major Canadian retailers to offer cash back rewards at popular merchants.

KOHO Plans Overview

KOHO provides a prepaid Mastercard with three tiers—Essential, Extra, and Everything—allowing you to choose the plan that best matches your spending habits and financial priorities.

Each tier unlocks progressively better benefits, making KOHO suitable whether you're just getting started or want premium features.

Neo Financial Cards Overview

Neo Financial offers three different types of credit cards: Mastercard, World Mastercard, and World Elite Mastercard. Each card tier provides different reward levels and benefits, with the World Elite Mastercard requiring an annual fee of $125.

KOHO Cash Back

KOHO's cash back rewards consistent use across essential spending categories:

• Essential Plan: 1% cash back on groceries, transit, and dining

• Extra Plan: 1.5% cash back on groceries, transit, and dining

• Everything Plan: 2% cash back on groceries, transit, and dining

Beyond base rates, KOHO members can earn up to 6.5% extra cash back at partner merchants.

Neo Financial Cash Back

Neo Financial offers category-specific rewards that vary by card tier:

• Neo Mastercard: 1% cash back on groceries & gas

• Neo World Mastercard: 2% cash back on groceries, gas, recurring payments, and 0.5% on everything else

• Neo World Elite Mastercard ($125/year): 5% cash back on groceries, 3% on gas, 4% on recurring payments, and 1% on everything else

Neo Financial's World Elite Mastercard offers higher category rates, but requires a $125 annual fee.

KOHO Interest Rates

Your KOHO account doubles as a high interest savings solution:

• Essential Plan: 2% interest

• Extra Plan: 3% interest

• Everything Plan: 3.5% interest

These rates apply automatically to your entire balance, meaning your money grows while sitting in your account.

Neo Financial Interest Rates

Neo Financial offers interest on your account balance through three different account types:

• Neo Everyday: Earn 0.1%

• Neo High Interest Savings Account: Earn 2.25%

• Neo Cash Account: 2.25%

KOHO Credit Building

KOHO's credit building program, available for $5-$10 monthly depending on your plan. This service reports your payments to Equifax, helping you establish or improve your credit history without a traditional credit card.

KOHO members using Credit Building have seen their credit scores increase by an average of 31+ points in just 4 months¹.

Neo Financial Credit Building

You can build credit history with Neo's secured credit cards, which report to both Equifax and TransUnion. However, it requires a monthly fee and refundable security funds to set your credit limit, functioning more like a traditional secured credit card product.

KOHO FX Fees

International spending policies vary by plan:

• Essential Plan: Standard FX fees apply

• Extra Plan: Zero foreign exchange fees

• Everything Plan: Zero foreign exchange fees

If you travel frequently and make purchases from international retailers, upgrading to Extra or Everything eliminates the typical 1.5% foreign exchange fee that can quickly add up on international transactions.

Neo Financial FX Fees

Neo Financial charges foreign exchange fees on international transactions across all card tiers.

KOHO International Transfers

Sending money across borders can be expensive and full of surprises. With KOHO, International Money Transfer is always fast and secure with no hidden markups or other-worldly fees.

Whether you're helping family back home, paying for services abroad, or sending money to friends—KOHO has made it simple, affordable, and fast.

Neo Financial International Transfers

Neo Financial does not emphasize international money transfer capabilities with its card. The platform focuses primarily on domestic spending and savings rather than cross-border money movement.

KOHO provides dedicated international money transfer functionality, making it a complete solution for users who need to send funds abroad. Neo doesn't offer this feature, requiring you to use separate services for international transfers.

Virtual Card Access

KOHO Virtual Card

All KOHO plans include a virtual card that you can add to Apple Pay, Google Pay, or other mobile wallets.

This provides instant access to your funds before your physical card arrives and adds an extra layer of security for online shopping.

Neo Financial Virtual Card

Neo Financial provides a virtual card that works with mobile wallets, allowing for immediate use and enhanced security for online transactions.

Both platforms offer virtual card access with mobile wallet integration, providing equivalent functionality for contactless payments and online security.

KOHO Rent Reporting

KOHO offers rent reporting service, allowing you to build credit through your monthly rent payments—an expense you're already paying.

Turn your rent into a credit building opportunity. Get tenant insurance and earn cash back on your rent payments.

Neo Financial Rent Reporting

Neo Financial does not currently offer rent reporting services to help cardholders build credit through their monthly rent payments.

KOHO's rent reporting feature transforms your largest monthly expense into a credit-building tool while also providing tenant insurance and cash back. Neo doesn't offer this feature at all, missing an opportunity to help renters strengthen their credit profiles.

Who Should Choose KOHO?

KOHO is the ideal choice if you want:

• High cash back rates among prepaid cards (up to 2%)

• Competitive interest on your balance (up to 3.5%)

• Credit building without a traditional credit card or security deposit

• Zero foreign exchange fees for international spending (Extra/Everything plans)

• International money transfers at affordable rates

• Rent reporting to build credit through your monthly payments

• Flexibility to choose a plan that matches your needs and budget

KOHO's comprehensive feature set makes it suitable for users at any stage of their financial journey, from those just starting out to frequent travelers who need premium features.

Choose KOHO Essential if you:

• Want a no-fee account

• Value 1% cash back and 2% interest

• Wanting to build credit history

Choose KOHO Everything if you:

• Travel internationally or shop from foreign retailers frequently

• Want maximum cash back (2%) and interest (3.5%)

• Need comprehensive features

KOHO offers a complete solution

From earning competitive rewards and interest to building credit and sending money internationally, KOHO delivers comprehensive value.

The flexibility of KOHO's three-tier system means you can start with Essential and upgrade as your needs evolve.