Reviewed by Jen, founder of MoneyMint · Updated September 25, 2026

KOHO Financial Inc.Prepaid Account + Interest

KOHO Essential Account Review

Q: Is my money insured with KOHO?

Only if you opt into KOHO's Earn Interest feature. Once active, eligible funds are held in pooled trust with one or more CDIC member banking partners and are insured up to $100,000 per client, per member institution. Before opting in, your balance is not CDIC-insured.

Our take: KOHO’s free Essential plan pays 2% interest on your entire balance with no monthly fee and no minimum — but it isn’t a bank account. KOHO Financial Inc. is a fintech, not a bank; CDIC protection only applies once you opt into “Earn Interest,” and the “up to 3.5%” rate KOHO advertises needs its $14.75/month paid plan, not the free plan reviewed here.

At a glance2% interest, $0/month · Not a bank account

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Our review

KOHO markets itself as offering a “High Interest Savings Account,” but what you actually get is an interest-earning feature bolted onto KOHO’s core prepaid Mastercard account — the same balance you spend from, not a separate savings account. On the free Essential plan ($0/month), opting into “Earn Interest” pays 2% annually on your entire balance, calculated daily and paid monthly, with no minimum balance required. The catch is in the details: the up to 3.5% rate in KOHO’s marketing only applies to its $14.75/month Everything plan, and your funds aren’t CDIC-insured at all until you specifically opt in. Here’s what the free plan actually offers, and where the marketing needs a closer look.

3.5out of 5

MoneyMint rating

#4 of 13 savings accounts · How we rate

Regular rate

8/10

Promotional rate

0/10

Fees and minimums

10/10

Access and liquidity

9/10

Cash bonus

0/10

$200

interest on $10,000 over a year at this account’s effective rate. Compare savings rates →

At a Glance

Monthly Fee

$0KOHO Essential plan

Interest Rate

2%Essential plan rate; 2.5% and 3.5% require paid plans

Minimum Balance

$0every dollar earns interest once enrolled

Welcome Offer

None advertisedas of September 17, 2026

CDIC Coverage

Opt-in onlyfunds are not insured until you enroll in Earn Interest

Account Type

Prepaid MastercardKOHO is a fintech, not a chartered bank

KOHO’s advertised “up to 3.5%” interest rate is tiered by subscription plan: 2% on the free Essential plan, 2.5% on the $12/month Extra plan, and 3.5% only on the $14.75/month Everything plan (about $177/year). None of the accounts MoneyMint otherwise ranks for high-interest savings charge a subscription fee to earn their listed rate. Separately, funds loaded onto a KOHO Card are not a deposit and are not CDIC-insured unless you specifically opt into KOHO’s “Earn Interest” feature, per KOHO’s own Cardholder Agreement.

Pros & Cons

Pros

No monthly fee and no minimum balance to earn 2% interest on the free Essential plan
Interest is calculated daily on your closing balance and paid out monthly
Free, instant Interac e-Transfers and free KOHO-side ATM withdrawals (third-party ATM operators may still charge their own fee)
Once you opt into Earn Interest, eligible balances are held in trust with CDIC member banking partners and protected up to $100,000 per client, per institution
Sign-up takes a few minutes and there’s no credit check required to open the account

Cons

KOHO Financial Inc. is a FINTRAC-registered money services business, not a bank, and does not itself take deposits
CDIC protection is not automatic — by KOHO’s own terms, your balance is uninsured until you explicitly opt into Earn Interest
2% is the lowest of KOHO’s three interest tiers; the marketed “up to 3.5%” requires the $14.75/month Everything plan
KOHO can change the interest rate, or end the Earn Interest feature entirely, at its sole discretion without prior notice
A 1.5% foreign exchange fee applies on the free plan; it’s only discounted on paid plans
Interest is earned on the same balance you spend from, so it doesn’t function like a dedicated, walled-off savings account

Who It’s For

Best For

People who want some interest on a spending balance without paying a monthly subscription
Anyone comfortable with a fintech prepaid-card structure rather than a traditional bank account
Casual users who don’t plan to upgrade to a paid plan just to chase a higher rate

Not For

Anyone who wants a genuinely CDIC-insured bank savings account by default — see EQ Bank, Tangerine or Canadian Tire’s HISA instead
Rate-maximizers actually chasing 3.5% — that needs KOHO’s $14.75/month Everything plan, not the free plan reviewed here
Anyone who wants their savings kept separate from day-to-day spending

Not Sure? Three Accounts People Compare It With

All savings accounts →

Tangerine Savings Account

Pick this instead if you want a genuine bank savings account, always CDIC-insured, from an institution with a longer track record.

Rate 0.30% flatFee $0

Read review

EQ Bank Personal Account

Pick this instead if you want a higher ongoing rate with direct deposit, from a CDIC member bank, with no subscription fee.

Rate From 1.00%Fee $0

Read review

Canadian Tire High Interest Savings Account

Pick this instead if you want a simple flat rate on a real, always-insured savings account with no subscription tiers.

Rate 2.40% flatFee $0

Read review

KOHO Essential Account Review

Rate and terms confirmed September 25, 2026

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Jen, founder of MoneyMint

Reviewed by Jen. We verify every rate, fee and offer term against the financial institution’s own published material before we publish it, and we re-check on a set schedule.

The rate, fees and terms in this review were confirmed on koho.ca on September 17, 2026. MoneyMint does not currently have an affiliate relationship with KOHO. KOHO Financial Inc. is a FINTRAC-registered money services business, not a bank; it does not itself take deposits, and balances are not CDIC-insured unless you opt into KOHO’s “Earn Interest” feature, at which point eligible funds held in trust with KOHO’s CDIC member banking partners are covered up to CDIC’s standard limits. KOHO’s rates, plans and terms can change at any time without notice. This is general information, not financial advice — confirm current rates and terms on koho.ca before you sign up.

Frequently Asked Questions

Is KOHO a bank?

No. KOHO Financial Inc. is a FINTRAC-registered money services business that issues a prepaid Mastercard. It is not a chartered bank and does not itself take deposits — by its own terms, funds loaded onto a KOHO Card are not a “deposit.”

Is my money insured with KOHO?

Only if you opt into KOHO’s “Earn Interest” feature. Once active, eligible funds are held in pooled trust with one or more CDIC member banking partners and are insured up to $100,000 per client, per member institution. Before opting in, your balance is not CDIC-insured.

Why is the free plan’s interest rate only 2%, not 3.5%?

KOHO’s interest rate is tiered by subscription plan: 2% on the free Essential plan, 2.5% on the $12/month Extra plan, and 3.5% only on the $14.75/month Everything plan. The “up to 3.5%” figure in KOHO’s marketing refers to its most expensive plan, not the free one.

Is this the same as a savings account?

Not exactly. KOHO pays interest on the same balance you spend from — there’s no separate, walled-off savings account. If you want your spending and savings kept apart, a dedicated bank savings account may suit you better.

Are there other fees on the free plan?

ATM withdrawals are free on KOHO’s side, though the ATM operator may charge its own fee. A 1.5% foreign exchange transaction fee applies to purchases made in a foreign currency on the free Essential plan; this fee may be discounted on paid plans.