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What exactly is KOHO?

4 min read

What is KOHO

Written By

Silvi Woods
Silvi Woods

Rounding it up

  • Think of KOHO as a way to help you reach your financial goals, equipped with a spending and savings account, a prepaid credit card, and a stellar app.

  • How does it work? First, you load funds to your no-fee KOHO account via e-Transfer or direct deposit.

  • Then, you make whatever purchases with your KOHO prepaid credit card—and earn cash back on groceries and transportation.

  • Finally, you can use your KOHO app to look at your spending trends and cultivate healthy saving habits.

What is KOHO?

KOHO is a no-fee spending and savings account here to simplify your personal finances.

It’s a bit like a spending account, with the perks of a credit card. Think of KOHO as a collection of features designed to help you reach your goals faster and spend your money on things you like, rather than things that you don’t, like credit card interest or hidden fees.

Just like a spending account, you can put money into your KOHO account and then use it however you see fit (we like snacks and vacations!). And we’re like a credit card in that we offer cash back and other perks, plus you can use your KOHO reloadable prepaid credit card anywhere Mastercard® is accepted.

The key difference is that unlike a traditional credit card, it’s already your money—there’s no interest to pay, and the funds on your card are, well ... all yours. Plus, unlike pretty much everyone with just a bank-issued credit card, the average KOHO user actually reduces their overall spending, and saves 7% of whatever money they load into their account.

The long and short of it is that KOHO makes it easier (dare we say even fun) to manage your spending and savings habits.

How does KOHO work?

It’s pretty simple: you add funds to your KOHO account either by sending an e-Transfer from your existing bank account or by having your work’s payroll deposit your paycheque directly (we call this direct deposit). Then, you use your KOHO card in person or online to make purchases, just like you would with any ol’ debit or credit card. Finally, you can use your KOHO app to look at your spending and saving habits and create easy-to-execute Savings Goals.

Don’t forget—you can use your KOHO card for anything you might use Mastercard for, like a gym membership or trying out that buzzy new fusion tapas place. The card is a reloadable prepaid Mastercard, and we run on the Mastercard network, so merchants would treat your card just like a normal credit card transaction.

Using our truly stellar app, you can see how you’re spending your money at a glance, watch your cash back accumulate, and set up RoundUps on your purchases to painlessly stash a little money away.

You can also create clear Savings Goals, which sets up an automatic savings system to make it easier to jet off to Lisbon for a week, or be ready for that hot new sneaker drop, or whatever else it is that makes you happy.

KOHO Signup Link

What else does KOHO offer?

Great question—we offer so much more! You can opt in to Earn Interest! With us, you get to earn up to 4.5% interest* (which is 3.5x the national average!) on your spending and savings account.

On top of that, we have something called Credit Building. As its name implies, this nifty feature builds your credit history in six months. Subscribe to Credit Building in-app and ensure you have the subscription fee in your Spendable for the next six months. We'll report your progress to a major credit bureau!

There’s also our great referral program, where every time you refer a friend to KOHO, we give each of you $20. We like to think of it as a little welcome gift. Plus, you don’t have to stop at one friend—you can earn up to $1000 through referrals. Now that’s a nice chunk of change, don’t you think?

Okay, so where does KOHO put my money?

We’ve partnered with Peoples Trust, a federally regulated financial institution to hold any money you load onto your KOHO card. This means that if anything were to happen to us, your money would be safe and you’d be able to access it through Peoples Trust.

Wait, what’s the difference between KOHO and a debit account?

The big difference is that we’re digital first—there are no branches, no tellers, no standing in line to pay your bills, no street corner ATMs (though KOHO works at any ol' ATM, and we won’t charge you for using one).

Our costs are low and we prioritize making our users feel empowered about their financial decisions over things like brick and mortar, in-person services.

Plus, unlike with a regular debit account, you get cash back on groceries and transportation. With a regular KOHO prepaid Mastercard account, you earn 1% cash back on every purchase. With KOHO Extra, you earn an extra 2% on 3 major categories. We’ve also partnered with some pretty great brands like and Pizza Pizza to get you even more cash back. So you get money for buying the things you were going to buy anyway, but without the risk of going into credit card debt.

Also, our app is legitimately awesome. Which, to be frank, is not a thing banks can say. Where they usually release a new version of their apps once a year, we release updates and improvements every three weeks.

So, what makes the app so awesome?

We tweak and improve our app in order to release updates every three weeks, and we put in the research time to make it easier than ever to align your spending and saving habits with your goals.

It’s dead simple to use, and there are lots of built-in ways to make the most of your money.

For instance, you can choose to round up your purchases to the nearest buck or two (or five or ten) and we’ll stash that money away for you— these are called RoundUps. It adds up quickly, and you can cash out whenever you like – back into your spending money or towards a savings goal (remember that automated way to set aside savings that we mentioned earlier?).

Do I still need a regular bank account if I have KOHO?

Honestly? Probably, yes. Although, if you’re down to have your paycheque deposited directly and you never need to write paper cheques, you could technically use KOHO for all your chequing account needs.

It’s super simple to pay your bills from your KOHO account—everything from utilities and credit cards to Netflix and your cell phone bill. You can also send unlimited free e-Transfers, and, of course, use the card anywhere Mastercard is accepted.

If you need to write cheques, or would prefer to only deposit part of your paycheque into KOHO, you’ll still need a bank account.

KOHO Signup Link

How do most people use KOHO?

Most people start out by using KOHO for the fun kind of spending, like loading their account with what’s left over after accounting for standard expenses and savings—the guilt-free spendable, if you will. Some financial experts recommend around 30% of each paycheque should go toward guilt-free spending, things like food and fun and y’know, being social. Everyone’s a little different, so your specific budget might vary.

A lot of KOHO users will load that Spendable onto their prepaid Mastercard and, well, spend it. It’s smart because it’s just as easy as reaching for a credit card, but it won’t cost you 20% to finance your life and since it’s already your money, you know you’re staying within your means.

Many users also find KOHO is a super simple way to start saving. As we mentioned earlier, our data shows that users save 7% of the money they load into the account (through RoundUps and Goals), vs. the 2% of their income the average millennial stashes away.

As time goes on, we’re seeing more and more people using KOHO as their primary spending account, having their paycheques direct-deposited and paying off bills and into savings directly from the app. Which makes sense—who wants to pay fees or interest? Plus, the cash back and RoundUps put more money in your pocket. The data shows that KOHO users who put their paycheque on KOHO save twice as much as people who don’t through RoundUps and Savings Goals.

What’s next for KOHO?

Glad you asked! Our product roadmap (meaning everything that’s in store for the future) is available to the public, and we love when users tell us what they want to see from us. Our product team uses the suggestions of the users to inform our next moves. KOHO is meant to empower our users to feel good about how they manage their money.

To that end, we’re building KOHO for the people who use it. Every Canadian who joins and shares their voice is helping us build a better KOHO.

*Interest rates are per year, calculated daily, paid monthly, and can change at any time without notice.

Note: KOHO product information and/or features may have been updated since this blog post was published. Please refer to our KOHO Plans page for our most up to date account information!

Silvi Woods

Silvi Woods is a financial planner at Wealthsimple and holds her CFA and CFP designations. Prior to Wealthsimple, she worked as an Investment Analyst for one of Canada’s largest equity mutual funds and as a Financial Planner at KOHO.



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