Key takeaways
- KOHO is not a bank or CDIC member; its card is a prepaid Mastercard issued by KOHO Financial Inc.
- The free plan needs a recurring direct deposit or $1,000 added each month; paid plans are $12 or $14.75 a month
- Interest of 2%, 2.5% or 3.5% by plan, if you opt in to Earn Interest
- Opted-in balances are held in trust at CDIC members; KOHO says balances not earning interest are not CDIC eligible, and CDIC does not cover KOHO itself failing
- Credit Building costs $10 a month, has no hard credit check and reports to Equifax and TransUnion
What is KOHO, and is it a bank?
KOHO is a Canadian financial app. It gives you an account in the app and a KOHO Mastercard Prepaid card, which KOHO says is issued by KOHO Financial Inc. You load money onto it, then spend it. It is not a credit card.
KOHO is not a bank and not a CDIC member institution. The Financial Consumer Agency of Canada (FCAC) has general advice on prepaid cards. It says fees can lower the value of your card. It also says you must register a card to be protected if it is lost or stolen.
What do KOHO’s plans cost?
| Plan | Monthly price | Interest | Cash back on groceries, eating and drinking, transport | Other cash back | Foreign transaction fees |
|---|---|---|---|---|---|
| Essential / Core (free plan) | $0 (see conditions) | 2% | 1% | 0% | Not included |
| Extra | $12 (one KOHO table shows $12 to $18) | 2.5% | 1.5% | 0.25% | No FX fees |
| Everything | $14.75 | 3.5% | 2% | 0.5% | No FX fees |
Source: KOHO’s plans and plan pages, checked October 10, 2026. KOHO’s pages use two names for the free plan: “Core” on the comparison page and “Essential” on the plan page.
How the free plan is $0. The Essential page says you unlock it by setting up a recurring direct deposit of pay or government benefits, or by adding a total of $1,000 or more each month. Cash deposits, e-Transfers and transfers from other accounts count toward the $1,000.
ATMs. The Essential page says you may pay a $2 to $3 out-of-network fee at ATMs.
Worked example: is a paid plan worth it?
Everything costs $14.75 × 12 = $177 a year. On an average balance of $5,000, interest is about $175 at 3.5% versus $100 at 2%. The extra $75 in interest does not cover the $177 fee by itself. The plan pays off only if the extra cash back, foreign fee savings and Credit Building discount add up to more than about $102 a year for you.
How does KOHO hold your money?
KOHO says that when you opt in to Earn Interest, your balance is “held in trust with one or more CDIC member institutions.” The pages we read do not name these institutions. Three points matter:
- CDIC insures eligible deposits held in trust up to $100,000 per beneficiary, per member institution, if KOHO meets CDIC’s disclosure rules.
- KOHO’s help centre says “KOHO accounts not earning interest are not eligible for CDIC protection.”
- CDIC’s bulletin for fintechs (April 2026) says protection applies if the member institution holding the money fails, not if the fintech itself fails.
In short, KOHO links CDIC eligibility to the Earn Interest opt-in. Deposits at a bank that is itself a CDIC member are insured directly, without these conditions. Read CDIC deposit insurance explained.
Does KOHO build your credit?
Using the prepaid card does not create a credit history. Credit bureaus record credit products, and a prepaid card is not credit. KOHO sells a separate Credit Building add-on for that:
- Price: $10 a month. Extra plan members get 30% off and Everything members get 50% off.
- How it works: KOHO gives you a credit line with 0% interest. Your on-time monthly payments are reported to Equifax and TransUnion. The Everything page describes it as a $225 line.
- Approval: no hard credit check, no deposit and no application, per KOHO.
- Limits: KOHO says it is not a credit repair tool and does not guarantee a higher score. Late or missed payments can lower your score.
Compare it with a secured credit card, which also reports to the bureaus, in secured credit cards for newcomers. For a full plan, see how to build credit fast.
Common KOHO pitfalls for newcomers
- Forgetting to opt in to interest. Interest is not automatic. You turn on Earn Interest in the app. KOHO links CDIC eligibility to this opt-in.
- Missing the $1,000 a month. If you have no direct deposit and add less than $1,000 in a month, the free plan’s conditions are not met. Check what KOHO charges in that case in the app.
- Paying for two credit tools. If you already have a secured card or a newcomer credit card, Credit Building may add little. Both report to the same bureaus.
- Using out-of-network ATMs. A $2 to $3 fee each time adds up. Plan cash withdrawals.
- Treating it as a full bank. You cannot get a bank draft or a mortgage from KOHO. Keep a bank account for those needs.
Check your credit report a few months after you start any credit product. See how to get your free credit report.
Who is KOHO a good fit for?
- You want a simple spending app with cash back and budgeting, alongside a bank account.
- You get a direct deposit or move $1,000 a month, so the free plan costs $0.
- You want a credit-building product with no credit check and can pay $10 a month (less on a paid plan).
It is a weaker fit if:
- You need cheques, bank drafts or a branch. These come from a bank.
- You want a first credit card. KOHO’s card is prepaid.
- You plan to keep large savings in the app. Coverage depends on opting in and on KOHO’s trust arrangements.
Pair it with a bank account from best bank accounts for newcomers.
KOHO offers as of October 10, 2026
Offer as of October 10, 2026. KOHO’s plans page says plans come with a free 30-day trial. We did not find other welcome offer details we could confirm on KOHO’s site. Providers change offers often; confirm in the KOHO app or on koho.ca.
How we handle offers. Offers and fees on this page come from each provider’s own website and were last checked on October 10, 2026. Providers change offers often, so confirm the details on their site before you apply. No provider pays to be included or ranked here. If a link on this page ever earns us a commission, we will label it next to the link.