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Whether you want to spend or save - or save while spending - KOHO does all of that. With all that it has to offer, this KOHO review discusses how the company has earned a spot as a leading financial app that competes with what major banks can do for you.
KOHO is like a bank without actually being a bank. You are provided with a spending account, and a savings account. Easily earn cash back on every day spending, and gain interest on your entire balance. With more than 825,000 Canadians on KOHO, users have reported saving 7% of the money loaded onto the app.
KOHO is a Canadian fintech company that challenges how Canadian’s bank. Every day banking is constrained by transactional fees imposed by the institutions. KOHO waives all of those fees. KOHO is the favoured app amongst Canadians for earning cash back on everyday purchases. The KOHO app was designed for saving money.
KOHO Promo
Earn up to $1,000 by referring a friend and earn $20 when they sign up and make their first purchase. Unlike most fintech apps who have exclusive offers that expire, this offer by KOHO is available all the time - for when you are ready.
So, How Does KOHO Work?
Think of KOHO as a payment app, not a bank. You transfer funds from your existing bank onto your KOHO app. You then have the option to move your money to spendables, like a chequing account, or move your money to the vault, like a savings account. Your KOHO account comes automatically equipped with a prepaid Mastercard for your spendables. You will have to sign-up for a physical KOHO prepaid Mastercard if you wish to have one.
In order to pay for transactions with your KOHO app, have the NFC function on your phone enabled (usually located in settings on your phone). Open up your KOHO app, and tap your phone like you would a debit card or a credit card at the payment terminal in order to pay for a purchase.
Earn Unlimited Instant Cash Back
All credit cards come with perks, usually in the form of rewards or cash-back. KOHO believes that cash back is your reward. KOHO offers one of the most promising and extensive cash back programs out there. Earn 1% cash back on your everyday purchases for groceries, bills and services. Shop with KOHO and earn unlimited instant cash back on eligible transactions. You can also earn up to 5% extra cash back with purchases made online or in-store with participating KOHO partners. 1% cash back is earned for your purchases at Indigo. Earn 1.5% cash back with Well.ca. Earn 2% cash back with Branch,iQ, Rakuten Kobo, Natura Market and The Last Hunt. Get 3% cash back with Chef’s Plate, Kernels, Pizza 73, Pizza Pizza and 10 Tree. Altitude Sports and Open Farm will give you 4% cash back for your purchases. And Baskin Robbins, Contiki and Frank and Oak will give you 5% cash back.
No Annual Fees and 0% Foreign Transaction Fees
Everything really is straight-forward here. There are no hidden fees when you sign up for KOHO. All ATM withdrawals and Interac E-Transfers are free, always. With the KOHO easy plan, all of your services are free except for foreign transactions, inactivity fee, and visa direct load fee..
If you sign-up for the Premium KOHO account, all foreign transactions are free too. Take a look at the table we’ve created for you in order to compare the different types of accounts offered to you by KOHO:
Card Type:
Easy
Essential
Extra
Cost:
Free
$48/annual or $4/month (30-day trial)
$84/annual or $9/month (30-day trial)
Electronic Funds Transfer:
Free
Free
Free
Interest Earned:
0.5%
1.5%
2%
Foreign Transaction Fee (FX):
1.5%
1.5%
0%
Cash Back Rate:
1% on groceries, bills and services. Up to 5% extra with partners.
1% on groceries, bills, services, and food & drink. 0.25% on all other purchases. Up to 5% extra with partners.
2% on groceries, bills and services, transportation, and food & drink. 0.5% on all other purchases. Up to 6% extra with partners.
Credit Building:
$10/month
$7/month
$7/month
KOHO App: Track Your Spending and Budget With Ease
You’ll be able to save money and set goals using KOHO. We’ve laid out some of the key features for you below:
Track Spending and Budget
You can only gain access to these features after you’ve made your first purchase. Access the Spend page at the far bottom-left of the app. Scroll to the bottom and select ‘See all Transactions’. Here you’ll be able to see your spending habits; how much you spend and how much you save. And with categories like grocery, and services and bills, you’ll be able to see just how you spend that money. Receive a balance update here too after every transaction made. Ready to get started? You can do that now! Go to KOHO.
Savings
There are two features in order for you to save on the KOHO app. There is the traditional piggy-bank version, exactly like the savings account you are used to at a bank - it’s called Vault on KOHO. There’s also the RoundUps feature on KOHO - this rounds your change up to the nearest dollar. Here is how those work:
Vault - like an actual savings account, you tuck away money you do not wish to spend right now.
RoundUps - Round up to the next dollar after each transaction made with the KOHO app. You’ll need to go to the ‘Save’ button at the bottom of the screen, to the left of the $ symbol. Go to RoundUps and hit ‘Set It Up’. Then you’ll have to set up the amount you wish your change to be rounded up to.
Goals
This feature allows you to set a savings goal for yourself. Give the goal a name such as ‘Vacation Funds’, or ‘Student Loan Debt’. You’ll be asked how much you wish to save, when you plan to save it by, and how much you wish to contribute now.
Donating
There are many organizations affiliated with KOHO, and you can donate to their cause directly from the KOHO app. All of the charities on KOHO are registered with the CRA.
KOHO Credit Building
KOHO has a credit building feature to help you build your credit and pay your bills on time. You can set-up automated repayments so that your bills are always paid on time and watch your credit score climb. Credit Building is the only feature on KOHO that is not free. KOHO offers the Fixed Credit Building tool, and the Flexible Credit Building tool. With the Easy plan, the Fixed Credit Building tool costs $10 a month, and with the Essential and Extra plans, the credit building tool costs $7 a month. KOHO just launched the Flexible Credit Building tool that is currently available via invite only. At $5 a month, the Flexible Credit Building tool lets you stack away your funds as a secured line of credit that ranges from $30 to $500. If you need access to this line of credit, there is no penalty, just make sure that there are enough funds available in your KOHO account at the end of the month so that KOHO can recollect the debt.
KOHO Sign-Up and Verification Process
Below we have laid out the steps on how to sign up for KOHO and also how to verify your account.
Instructions to Sign-Up for KOHO: Mobile Version
We’ve laid out the step-by-step instructions for you below in order to sign-up for KOHO:
Download and install the KOHO app available on the Apple Store, or Google Play Store.
A how-to guide will open up in the app, you can watch it if you like, or by pressing the x at the top, or select Get Started at the bottom of the screen. If you don't select skip, you’ll still have to select Get Started.
Step 1 in the app is to sign up for an account using your email address and a password selected for the app.
Step 2 is to provide your name and date of birth.
Step 3 is to provide your home address.
Step 4 is to provide your mobile phone number. You’ll be texted a verification code on your phone. Enter the verification code that you were texted onto the screen.
You are now ready to use the app!
For added features like earning interest and checking your credit score, you’ll need to verify your identity.
Instructions to Verify your Identity on KOHO
Here is an instructional step-by-step of how to verify your identity on KOHO:
Open up your KOHO app and select the credit building tool, to the very bottom right of the screen.
Hit ‘Sign Up’.
Hit ‘Verify my identity’.
Select your occupation and how you intend to use KOHO.
Select the country you live in.
Select which identification you will be uploading: Passport, Driver’s License, National Identity Card, Residence Permit. In this case, we’ve selected driver’s license.
Enable camera.
Allow KOHO to take pictures and record videos.
Take a photo of the front of your card, fit into the frame on the screen. Upload when done.
Take a photo of the back of your card. Upload when done.
You’ll be asked to enable access to your microphone, go ahead and grant access.
You’ll be asked to record your face into the oval frame.
Say the three numbers out loud into the microphone of your mobile device.
Turn your head to the right, then turn your head to the left.
You are done! You have now verified your identity on KOHO and can utilize the credit building tool.
You will need to file taxes on the interest earned on KOHO, and you’ll get T5 slips in order to do so. In order to earn interest on KOHO, you’ll need to set up your account by verifying who you are.
You’ll be asked to confirm your home address.
You’ll be asked to confirm your citizenship.
You’ll be asked to confirm your employment status.
You’ll need to provide the company name you work for, the sector, and your role. Provide the name of your educational institution if you’re a student.
Enter your Social Insurance Number.
Confirm your details.
Review information and agree. It is a crime (and a possible felony under administrative offenses) to provide false information to the Canada Revenue Agency.
FAQs
We’ve compiled an FAQ list based off of all things KOHO Canadians want to know the most.
Yes, KOHO is a legitimate fintech app trusted by over half-a-million users. KOHO is safe to use since it is registered with People’s Trust- a leading issuer of prepaid cards in Canada. Your funds are eligible for CDIC protection.
You’ll need a bank account if you wish to receive e-transfers from a non-KOHO account. Additionally, if you wish to write physical cheques, you’ll need a regular bank account for that, too.
No. Your funds are yours, and you have full control of your money on KOHO. There are no penalties or repercussions for withdrawing funds from your savings.
Get Approved in Minutes and Start Using Your KOHO Credit Card Today
We download and test a lot of fintech apps here at Insurdinary. Our team has noted that the KOHO verification process is one of the fastest we’ve seen to date. You really do get approved in minutes! At Insurdinary, we strive to help every Canadian gain the financial confidence they deserve by providing daily insights and reviews on personal finance and wellness. We confidently recommend KOHO as a leading fintech app to help you budget, save and earn cash-back with one tap.
