KOHO is a reloadable prepaid Visa card that has an accompanying app for Canadians, which helps people to spend, budget and save smartly. The app offers real-time insights on the way you spend and by helping to automate some of your savings, it enables you to achieve your financial goals. The card has no fee and also offers 0.5% cash back on your purchases. Now, you can manage your money, simplify your finances and boost your savings, all from a single KOHO app that you can download and join for free.
KOHO is a Canadian company, which was started by Daniel Eberhard in 2017. The main objective of KOHO is to help you save on the extremely high banking fees you pay every month. The company also makes saving and budgeting easier for Canadians so that they can be financially secure without changing their lifestyle drastically. KOHO is not a bank and has partnered with Peoples Trust, which is a federally regulated company, and Visa to hold the funds that are loaded on your card.
Opening a KOHO account is easy and takes less than 5 minutes. When you sign up with KOHO, you get a Visa card along with a PIN and chip that ensures that your information is secure. The card works just like a debit card and allows you to spend, while at the same time encouraging savings. You need to link your bank account to your KOHO card or e-transfer the funds to the card. You can also set up to put the entire amount or part of your paycheck to the KOHO card.
Once the money is loaded, you are all set to start using your KOHO card. The best part is that you only spend the money that you have without the worry of an overdraft. KOHO acts like a savings bank account that tracks your spending and with the app, which is available on the Google PlayStore or App Store, you can get notifications about your spending instantly. You also have the option of creating custom spending categories so that you know exactly what you have spent your money on. KOHO also offers tips on your spending patterns vis-à-vis other KOHO users.
When you continue using KOHO, you get data regarding your spending patterns, which shows your daily or weekly spending and if the app notices that the spending is above average, then it will alert you, which will help you spend less.
- No Monthly Fees: KOHO does not charge any fees for your account, a new or a replacement card, electronic transfer of funds from your bank, Interac e-transfer, ATM withdrawals (within the KOHO ATM network of more than 8,500 ATMs), etc.
- 0.5% Cash Back on Your Purchases: KOHO offers a 0.5% cash back or PowerUps each time you make a purchase. Signing up for KOHO Premium can increase your cash back to 2%.
- Automated Savings: The KOHO app lets you set your saving targets and helps you achieve them. For instance, if you want to save around $1,000 for something you want to purchase 6 months down the line, the app will tell you how much you should save on a daily/weekly/monthly basis and also debit the amount so that you can meet your target.
- RoundUps: The RoundUps feature of your KOHO card helps you to save by rounding up all your purchases to the nearest $1, $5 or $10 and put the rounded-up part of each transaction into your savings automatically.
- Real-Time Insights: KOHO shows you the categories you’re spending on and how much money goes into what. It also shows your spending compared to other users of the app. This helps you to budget and make important financial decisions.
- Versatile App: The KOHO app allows you to accomplish several tasks easily without going to the bank. For instance, you can automate your bill payments, set up your payroll deposits, etc. The live in-app support function is available from 9 am to 5.30 pm EST, 7 days a week, where you can chat with real customer care representatives.
- Apple Pay: You can make use of KOHO along with Apple Pay on your Apple device. All you need to do is add KOHO to your Apple wallet and when you’re shopping in-store, there is no need for you to use your physical KOHO card.
- Financial Advice: When you have a payroll deposit set up, you can get free financial advice via the app and you can get answers to your queries on budgeting, investing, savings or debt.
- Referral Program: KOHO has an excellent referral program and when you get someone to sign up, both of you get an additional bonus 1% cash back for a period of 90 days.
- KOHO does not replace your bank fully and you will have to look for other options for your investing needs.
- There are limits on the number of transactions you can make on your KOHO card and also on how much you can load on your card.
KOHO may be the right option for you if you are/ want to:
- Save Money: KOHO gives you real-time information about how you are spending your money, which can help you budget better. The RoundUps feature and the saving plan of KOHO is also quite practical and allow you to save and achieve your financial goals.
- Savings on Fees: While KOHO may not really be the best when it comes to meeting all your banking needs, it can help in terms of saving a lot on banking fees.
- Traveling: You can utilize your KOHO card outside Canada and save on the foreign transaction fees. While most banks and credit cards charge around 2.5%, KOHO charges only 1.5% for using your card abroad. You can use your KOHO card to rent a car, book hotels, shop online, etc.
- Convenience: KOHO is a great option for busy people who are looking for the convenience of conducting all their financial transactions online using their phone, laptop or tablet.
Overall, KOHO is an excellent prepaid card and app that encourages you to be smarter with your money. It offers a great way to manage your money. You can either use KOHO for all your banking, budgeting and saving needs or you can use it with your credit card in order to manage your miscellaneous spending without going over your budget.