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 its website.
Is KOHO a bank
Koho Financial Inc. is not a bank, but 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. 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 CAD 100,000 returned by Peoples Trust Company, the CDIC-insured partner bank.
KOHO’s service quality
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. bers ear following interest rate:
- Everything Plan: 4%.
- Extra Plan: 3%.
- Essential Plan: 2.5%.
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 MasterCard prepaid card
KOHO’s Mastercard prepaid card will be delivered in approximately 10 days. With the KOHO mobile app, you can effortlessly track your expenses in real time. The card is 3-D secure and compatible with Apple Pay and Google Pay, making it easy to make secure and contactless transactions. One of KOHO’s biggest selling points is its cash-back benefits. Essential plan members receive 1% cash back on groceries and transportation, while Everything plan members (at a $19 monthly fee) enjoy even more benefits. Including 2% cash back on groceries, eating/drinking, and transportation, as well as 0.5% cash back on all other purchases. Additionally, Everything plan members can earn an impressive 6% cash back on bookings made through booking.com.
KOHO credit building
KOHO offers a credit-building feature, which is beneficial for individuals looking to improve their credit history. For Essential plan members, the cost is an optional $10, while Extra plan members would pay $7. All plan members enjoy a reduced rate of $5.
Here’s how KOHO’s credit builder works:
KOHO opens a line of credit for you: You choose an amount to set aside from your line of credit, which becomes untouchable. Each month, KOHO reports that amount as an on-time payment to Equifax, boosting your credit score with every payment.
KOHO international fees
For international use, you’ll have more fees to consider. Only additional and all 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.
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