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CANADIAN FINTECH REVIEW
KOHO Review 2026: Is Canada’s Prepaid Card Worth It?
No bank fees. Cash back on every purchase. A savings account paying competitive interest. Here’s the honest breakdown of who KOHO is actually right for.
KOHO launched in 2017 with a bold promise: give Canadians a spending account with no fees and actual cash back. Seven years later, it’s grown to over 1 million users — which means it’s doing something right.
But “no fees” and “cash back” come with asterisks. The free plan has limits. The paid plans have monthly costs. And the “savings account” isn’t a true savings account — it’s a prepaid Visa with interest on the balance.
This review breaks down exactly what KOHO is, what it costs, what you get, and whether it makes sense for your wallet in 2026.
What is KOHO?
KOHO is a Canadian fintech company that offers a prepaid Visa card and app. It’s not a bank — it’s a financial technology company that partners with People’s Trust Company, a federally regulated trust company, to hold your deposits.
Your money in KOHO is CDIC-protected up to $100,000 — the same protection as the big banks.
The core product is a reloadable prepaid Visa that works anywhere Visa is accepted. You load money onto it, spend from it, and earn cash back. No overdraft means you can’t overspend — which is a feature, not a bug, for anyone trying to stay on budget.
KOHO Plans: Free vs. Essential vs. Extra vs. Everything
KOHO has four tiers. Here’s what each one offers in 2026:
| Plan | Monthly Cost | Cash Back | Savings Interest |
|---|---|---|---|
| Free | $0 | 0.5% on groceries & transport | 2.5% on balance |
| Essential | $4/mo ($36/yr) | 1% on groceries & transport | 3.5% on balance |
| Extra | $9/mo ($84/yr) | 2% on groceries & transport | 4.5% on balance |
| Everything | $19/mo ($180/yr) | 2% on all purchases | 5% on balance |
All plans include: no monthly fees on the card, no foreign transaction fees on Extra and Everything, free e-transfers, and a virtual card for instant use.
The Math: Is Upgrading Worth It?
Let’s say you spend $800/month on groceries and transit (a typical Canadian household). Here’s how the cash back plays out annually:
Annual cash back on $800/month spend:
- Free (0.5%): $48/year — plan cost $0 → net $48
- Essential (1%): $96/year — plan cost $36 → net $60
- Extra (2%): $192/year — plan cost $84 → net $108
- Everything (2% all spend): depends on total spend — at $2,000/month total: $480/year — plan cost $180 → net $300
The math is clear: Extra is the sweet spot for most Canadians who use KOHO for groceries and transit. Everything only pulls ahead if you’re putting $2,000+ per month through the card and want to maximize the 5% savings interest.
KOHO’s Savings Interest: What You Need to Know
KOHO pays interest on your entire balance — not just a designated “savings” portion. That’s a different model than most banks.
The interest rates by plan (2026): 2.5% (Free), 3.5% (Essential), 4.5% (Extra), 5% (Everything). For comparison, most big bank savings accounts pay 0.5–1.5%.
But here’s the important nuance: KOHO is a spending account, not an investment account. You shouldn’t be parking your emergency fund or long-term savings here exclusively. For serious savings, you want a proper HISA at EQ Bank or Wealthsimple Cash running alongside it.
Think of the KOHO interest as a bonus on money you’re about to spend anyway — not a savings strategy.
Who KOHO is Best For
✓ Great fit if you…
- Want to stop overdrafting
- Are building a budget and need hard spending limits
- Want cash back without a credit card
- Have thin or no credit history
- Want to earn interest on everyday spending money
✗ Not the right fit if you…
- Need a credit card to build credit history
- Want the highest possible savings rate (use EQ Bank)
- Rely on cheque deposits or in-person banking
- Need a mortgage or major credit product
- Want travel insurance or airport lounge access
KOHO vs. Neo Financial vs. Wealthsimple Cash
These three are the main Canadian fintech spending/savings accounts competing for the same wallet:
| Account | Cash Back | Savings Rate | Best For |
|---|---|---|---|
| KOHO Extra | 2% groceries & transit | 4.5% | Budgeters, no-credit folks |
| Neo Money | Up to 5% at partners | 4.0% | Partner-store shoppers |
| Wealthsimple Cash | 1% all purchases | 3.75% | Wealthsimple invest users |
KOHO wins on cash back for targeted categories (groceries, transit). Neo wins if you shop at specific partners. Wealthsimple Cash is best if you’re already investing with Wealthsimple and want everything in one ecosystem.
The Verdict
KOHO earns its place as one of the best no-fee spending accounts in Canada. The free tier is genuinely useful — 0.5% cash back and 2.5% interest beat most big bank accounts at $0/month.
For most Canadians, KOHO Extra at $9/month is the sweet spot: 2% cash back on groceries and transit plus 4.5% interest on your balance covers the plan cost quickly if you spend a normal amount on food and getting around.
It’s not a replacement for a proper investment account or high-interest savings account. But as your everyday spending card? It’s hard to beat.
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Get KOHO Free →True North Money is general educational content, not personalized financial advice. We are not registered financial advisors. Consult a registered professional for advice specific to your situation.