Paperwork stops more would-be savers than arithmetic does. A savings account can’t do much for you if a minimum balance or a long application gets in the way before your first deposit.
This KOHO savings account review covers an app-based account available to GTA residents: it pays interest on eligible money while leaving it spendable, unlike a conventional standalone savings account.
Daily calculations, one monthly payment.
KOHO savings account review: How the interest structure works
Interest is calculated daily and paid monthly
KOHO calculates interest daily on your eligible balance and credits the total once a month, provided you’ve opted in to Earn Interest in the app. The mechanism sounds more complicated than it is. An advertised annual rate isn’t paid out in full each day; it’s converted into a daily figure based on the balance you hold that day, and the month’s total lands after the month closes.
Money can earn while it sits in Spendable, RoundUps, or a Savings Goal, subject to your current plan terms. You keep access to it the whole time. There is no fixed term, unlike a guaranteed investment certificate (GIC).
What the KOHO savings interest tiers mean
The maximum advertised annual rate isn’t the rate every customer receives. Tiers are tied to the plan you hold, and KOHO can change the rate attached to any of them. Because the rate travels with the plan, the number that matters is whichever one is posted on the KOHO High Interest Savings Account page the day you sign up, not the figure quoted in a review.
Run the math before you commit.
What happens if I put $1000 in a high yield savings account?
At a steady 3.5% annual rate, a $1,000 balance would earn roughly $35 over a year. That ignores monthly compounding, and it ignores the subscription cost of the plan carrying the rate, which on a small balance can matter more than the rate does. Your result may be higher or lower.
Fees, minimums and the chequing-account difference
No minimum balance doesn’t mean free
KOHO advertises no NSF fees and no minimum balance requirement, and eligible balances can earn once you opt in. In other words, KOHO has no minimum balance requirement. KOHO savings account fees sit in the plan, not the balance. Weigh it against what you pay now: a March 2024 Canadian Press report said roughly 57% of Canadians either did not pay for a bank account or had their monthly fee waived or refunded. Check the plan charges and transaction terms when you sign up, because the free plan and the top rate may not be the same plan.
KOHO savings vs chequing account
The comparison comes down to what your money does while it sits still. A chequing account moves money and typically pays little or nothing for holding it. A traditional savings account may pay more, though its terms may require a transfer before you can spend it. KOHO’s Spendable balance takes direct deposits and funds purchases while eligible money earns, subject to your plan. The catch is the one you’d expect: you’re saving inside the balance you spend from.
Is KOHO safe and legit?
Yes, KOHO is a legitimate Canadian financial technology company, but it is not a bank. It states that customer funds are held in trust with Canada Deposit Insurance Corporation member institutions, and that eligible deposits may qualify for protection up to the applicable limit. KOHO itself isn’t a CDIC member. That distinction is why the current custodial and deposit-protection terms are worth reading before you move money in.
Opening the account and building the habit
How to open KOHO savings account access in the app
Here’s the sequence:
- Download the KOHO app and pick the plan that matches the balance and features you want.
- Complete the identity checks and add your first deposit.
- Wait for digital access, then opt in to Earn Interest and hold eligible money in Spendable or a Goal.
Setup happens on the phone.
KOHO advertises signup in under five minutes and digital access shortly after. Treat both as estimates rather than promises, since identity verification or an account review can stretch the timeline. The phone-first approach isn’t unusual anymore. A 2024 Canadian Bankers Association survey found 70% of Canadians had used mobile banking apps, and 30% did most of their transactions that way.
Two tools can help build the routine, and neither changes what the balance earns. Goals separate money visually without locking it away. RoundUps push the difference from eligible purchases into savings, so the weekly decision stops being a decision.
Questions readers keep asking
Is KOHO good for savings?
The fit depends on your temperament more than your balance. If what’s kept you from saving is paperwork or a minimum you couldn’t meet, the setup described above removes both. If what’s kept you from saving is your own spending, an account where the money stays reachable may be the wrong tool, and the top-tier subscription makes it costlier.
Do you actually get money from KOHO?
Yes, though it’s your own money working rather than a giveaway: eligible balances earn once you’ve opted in to Earn Interest, according to KOHO’s published plan information. Promotional and cash-back offers run on separate conditions.
A low-barrier start, with terms to check
KOHO’s pitch to a first-time saver is mostly about what it takes away. Whether that’s enough comes down to one number and one habit: the plan cost measured against the rate you’ll actually receive, and your willingness to leave reachable money alone. Check both before you sign up.
Disclaimer: The above is not any form of advice or recommendation. All investments carry risks. Please do your due diligence before any decision involving investments.
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