KOHO Review: 2024 Fees, Interest, Credit Card & Credit Building

Yes, KOHO is a legitimate and safe fintech option. Koho Financial Inc. is a Canadian company founded in Vancouver in 2014. While it is a relatively young company, it has managed to build a medium-sized customer base of around 500,000 users. KOHO partners with Peoples Trust Company, a federally regulated banking institution, to store your money.

The KOHO card issued to customers is powered by Mastercard, ensuring global acceptance and ease of use. Moreover, the website uses HTTPS to ensure secure data transmission during online interactions.

Koho Financial maintains a transparent pricing structure, with detailed fee schedules readily available on their website. While most fees are clearly disclosed upfront, we had to consult the FAQ website to find KOHO's 1.5% foreign transaction fee for the Essential Plan.

Is KOHO a Bank?

Koho Financial Inc. is not a bank. Instead, it operates as a fintech company that provides a wide range of financial services and solutions. KOHO partners with Peoples Trust Company, a federally regulated bank in Canada. This partnership ensures that in the event of KOHO facing financial difficulties, KOHO account holders' funds would be made whole up to $100,000 CAD — returned by Peoples Trust Company, the CDIC-insured partner bank.

KOHO offers a high-quality digital Canadian checking account with several useful features to enhance your banking experience. You'll receive instant notifications for all transactions, and the automatic spending categorisation makes budgeting a breeze. Additionally, KOHO provides both physical and virtual cards for easy access to your funds.

The online checking account is easy to use and allows free top-ups using a debit card or bank transfer. Moreover, the joint accounts feature is ideal for families managing their finances together.

However, credit card top-ups and cash and check deposits are not available with KOHO. Furthermore, the service does not support international money transfers, and the account functions exclusively in CAD.

KOHO Interest Rates

The round-up feature automatically saves your spare change, contributing to your savings. KOHO's member plans have varying interest rates. Members enjoy an impressive 5% interest on their balance (as of April 2024).

Additionally, KOHO provides a cover feature, offering up to $250 worth of overdraft without penalty or interest fees.

For customer support, KOHO excels with 24/7 assistance available through the mobile app, online FAQ page, phone, or email.

KOHO offers various membership plans with different features and monthly costs. The available plans are as follows:

• Essential Plan: $4/month ($0 if you set up recurring direct deposits or deposit $500 per month)
• Extra Plan: $9/month
• Everything Plan: $19/month

For everyday use, KOHO provides excellent rates with no non-sufficient funds fees and free domestic e-transfers. Topping up your account through a bank transfer is also free. However, if you need to withdraw cash from an ATM, there is a minor fee ranging from $2 to $3, as KOHO does not have a fee-free ATM network.

KOHO International Fees

For international use, you'll have more fees to consider. Only Extra and Everything plan members receive one free international ATM withdrawal per month and zero foreign transaction fees.

While shopping online with Canadian vendors is seamless, be aware that KOHO's Essential plan charges a 1.5% foreign transaction fee for international card purchases. This fee applies to every purchase or cash withdrawal in a foreign country. Since KOHO partners with MasterCard, your purchases will use MasterCard's exchange rate on foreign purchases (monitor here).

If you frequently travel abroad, it may be advisable to explore other debit cards with no foreign transaction fees, which we cover in our guide on the best debit cards for international travel.