KOHO Prepaid Card vs Wealthsimple Cash Card

Both KOHO and Wealthsimple have established themselves as leading fintech platforms in Canada, offering innovative alternatives to traditional banking.

In this comprehensive guide, we'll compare the KOHO Prepaid Mastercard with the Wealthsimple Cash Card to help you determine which card best fits your financial needs.

KOHO

KOHO is disrupting the traditional banking landscape with its prepaid Mastercard and suite of financial tools designed for Canadians.

The platform offers:

• Earn up to 3.5% interest

• Put cash back in your pocket, with up to 2% on groceries, transit, and dining

• A secure, affordable way to build your credit history

  • KOHO members have seen their credit scores go up by an average of 31+ points in just 4 months¹.

• Get up to $250 interest-free right when you need it

• Get Your Virtual Card with KOHO - Instant Approval, Secure, Convenient

Wealthsimple

Since launching in 2014, the company has diversified beyond automated investing to offer:

• No monthly fees

• Up to 2.5% interest on your entire balance

• 1 million dollars in CDIC coverage for eligible deposits

KOHO Prepaid Mastercard Features

KOHO's prepaid card, now powered by Mastercard, comes in multiple tiers including Essential, Extra, and Everything plan.

Make Essential your no fee account. The plan that gets you more from your everyday spending, fee free².

Key Features:

• Get one of Canada's best high interest rates: Up to 3.5% on your entire balance, no minimum balance required

• All KOHO plans put cash back in your pocket, with up to 2% on groceries, transit, and dining

• No foreign transaction fees³

• With KOHO, International Money Transfer is always fast and secure with no hidden markups or other-worldly fees

• Metal Cards are back - sign up for a Yearly Everything Plan to get yours

• Get a cash advance of up to $250 in Canada

• Get a free copy of your Equifax Credit Report and check your credit score for free

• Pay your rent through KOHO and we’ll report every payment to the credit bureau, Equifax

• Get tenant insurance and earn cash back on your rent payments

Wealthsimple Cash Card

The Wealthsimple Cash Card integrates seamlessly with the Wealthsimple high interest chequing account.

• Zero foreign exchange or transaction fees

• Enable automatic transfers to your investment accounts

• Schedule recurring purchases for stocks, ETFs, or cryptocurrency

• Unlock an additional 0.5% interest rate with Core or Premium membership when monthly deposits reach $2,000+

• Transfer up to $25,000 daily via Interac e-Transfer for eligible clients

• Send wire transfers throughout Canada and the US

KOHO's Approach

KOHO functions as both a savings and chequing account hybrid, offering up to 3.5% interest alongside free, unlimited Interac e-Transfers, bill payment capabilities, budgeting tools, and more.

Wealthsimple Offerings

Wealthsimple provides up to 2.5% interest on larger balances, complemented by free e-Transfers, bill payments, and automated investment features.

Rewards Comparison

KOHO members can earn up to 2% cash back on groceries, transit, and dining — plus up to 6.5% extra at partner merchants.

Wealthsimple Cash Card users do not receive cash back any longer.

Credit Building Capabilities

KOHO offers credit building program for $5-$10 monthly, members have seen their credit scores go up by an average of 31+ points in just 4 months.

The Wealthsimple Cash Card doesn't report to credit bureaus and won't affect your credit score.

Account Limits Breakdown

KOHO Paid Plan accounts:

For full details of account velocity limits, please visit here for all the details.

Wealthsimple Cash Card Limits:

• Daily spending cap: $5,000

• Single ATM withdrawal: $3,000

• Weekly ATM withdrawal total: $10,000

Security and Protection

Is your money safe? Absolutely, with both platforms.

KOHO deposits are held at Peoples Trust, a federally regulated financial institution, making them eligible for CDIC (Canada Deposit Insurance Corporation) protection.

Wealthsimple maintains customer deposits at CDIC member banks, ensuring your funds receive equivalent protection up to coverage limits.

Both companies employ encryption technology and bank-grade security protocols to safeguard your personal information.

KOHO Prepaid Card: Advantages and Drawbacks

Advantages:

• Earn cash back on select purchase categories

• Competitive interest on savings

• Get Essential for free²

• Build credit history

• Built-in budgeting tools

Drawbacks:

• Doesn't function as a credit card

Wealthsimple Cash Card: Advantages and Drawbacks

Advantages:

• Zero-fee prepaid card

• Immediate transfers within Canada

• Integration with Wealthsimple's investment and crypto platforms

Drawbacks:

• Not a credit card

• Cannot build credit history

Making Your Decision

When comparing KOHO versus Wealthsimple, which should you select?

KOHO Prepaid Mastercard provides more comprehensive benefits and cash back rewards, many Canadians find value in utilizing both platforms to maximize their financial flexibility.

¹Based on users with a starting score of 500 or less and who signed up for credit building in October 2024. Credit Building is not a credit repair tool and does not guarantee an improvement in credit score. Credit scores are based on complex models involving a variety of factors. Consistent on-time payments help improve scores and missed or late payments may cause credit scores to decrease. Outcomes may vary among users.
²Get Essential for free! Learn more
³No 1.5% FX fee if you are on Extra or Everything plan, currency conversion rate applies.