Reviewed by Jen, founder of MoneyMint · Updated September 25, 2026
KOHO Essential Account Review
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.
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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.
MoneyMint rating
#4 of 13 savings accounts · How we rate
$200
interest on $10,000 over a year at this account’s effective rate. Compare savings rates →
Not Sure? Three Accounts People Compare It With
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EQ Bank Personal Account
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Canadian Tire High Interest Savings Account
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KOHO Essential Account Review
Rate and terms confirmed September 25, 2026
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.