KOHO Mastercard

KOHO is a fintech company based in Canada that offers a variety of financial services through its app. Among its features, the credit building tool stands out as a premium feature aimed at improving users’ credit histories.

✅ No interest charges — since it’s prepaid, you never pay interest.

✅ Earn up to 2% cashback with select KOHO plans (e.g. groceries, transportation, restaurants).

✅ Free standard account or optional premium plans for extra perks.

Pros: Why People Choose Koho

• Low-cost, transparent pricing: The Essential plan has no monthly fee and the app is straightforward to use.
• Competitive interest: Koho pays more interest on held balances than many big banks, and it pays interest on money even while it sits in a spendable account.
• Cashback rewards: Earning up to 2% on all spending (and more at partner merchants) makes everyday purchases work harder.
• Modern app experience: Better budgeting and savings automation tools than many legacy banks.
• Useful for couples: Joint accounts make family spending transparent and easier to manage.
• Convenient payments: Direct deposit, e-transfers, and peer-to-peer payments function like bank features most people need daily.

Cons: Important Limitations to Know

• No mobile check deposit: Users cannot deposit checks by taking a photo. This feature is reportedly being developed but is not currently available.
• No bank drafts or money orders: Koho cannot be used for large certified payments such as bank drafts, which limits its usefulness for big purchases or certain legal transactions.
• Savings account cannot be locked: The spending account can dip into savings, potentially creating a negative balance. Users who want ironclad separation between spending and savings may find this problematic.
• Limited updates recently: Feature rollouts and app improvements slowed after an initial burst of development and a company rebrand. Some users are disappointed by the reduced pace of new features.
• Not a bank (yet): While funds are CDIC-insured through People’s Trust and spending is Mastercard-protected, Koho itself is not a bank. The company is pursuing a banking charter, which could change capabilities in the future.
• Joint account pricing limitations: Joint accounts currently only have the free plan available. Premium tiers and their benefits are not offered to joint accounts, which prevents couples from accessing higher interest or cashback on shared balances.

Pricing and Account Tiers

Koho offers tiered packages. The Essential package is free (conditions apply), and paid plans provide higher cashback percentages, higher interest rates on savings, and perks such as zero foreign transaction fees. Upgrading increases monthly cost but unlocks better rewards. Note that joint accounts are currently restricted to the free plan only, preventing access to premium plan benefits for shared accounts.

Some users can claim additional signup rewards through referral links; for example, a referral may add an extra 1% cashback on spending for new signups. Referral offers change over time, so check current terms when signing up.

Safety and Regulation

Bank charter in progress: Koho has indicated it is working toward becoming a registered bank. If achieved, that could expand offerings and regulatory standing.

CDIC coverage: Customer deposits held by People’s Trust are CDIC-insured up to prescribed limits (for example, CDIC rules typically protect eligible deposits up to $100,000—confirm current limits and eligibility).

Payment protection: Koho’s prepaid Mastercard transactions are protected through Mastercard networks.

Optimizing Your Credit Score

To maximize the benefits of KOHO’s credit building, it’s important to address any outstanding financial issues that might be affecting your credit score. This includes paying off overdue bills and managing debt responsibly.

Additionally, using credit monitoring services like TransUnion can provide insights into your credit status and help you identify areas for improvement. While such services might come with a fee, they offer valuable information that can aid in making informed financial decisions.

Sign Up for KOHO Now and Get Your Free Mastercard!