Are you looking for Koho reviews? Koho has been around for a few years now and has become one of the hottest fintech companies in Canada.
The concept is simple, Koho is a reloadable MasterCard app that lets you make smarter financial (Koho financial) decisions.
What sets them apart is that you earn cash on your purchases and earn interest on your deposits. This is unheard of for prepaid credit cards.
The base cash back rate is 0.5%, and you get $20 free when you sign up with a referral link. Koho is free too. Keep reading my Koho review for all the details.
Table of Contents
What is Koho?
Koho is both a physical prepaid card, combined with an app that gives you real-time insights into your spending.
The Koho Card is a free, preloaded, rechargeable MasterCard that you can use to make purchases while earning cash back.
So spend wisely and save all in one place. With real-time insight into your monthly expenses, Koho is also a great resource for budgeting.
How does Koho work?
Using Koho is as easy as spelling Koho. Hybrid bank accounts combine the features of a checking account, savings account, and credit card into one flexible account. This visa is accepted anywhere.
Like a checking account, Koho users must add funds to their accounts for transactions.
As a result, Koho doesn’t charge interest or require minimum payments, allowing customers to avoid lingering credit card debt while budgeting extra effectively.
That said, it’s not a credit-building tool, although a recently introduced option allows customers to improve their credit scores for a small monthly fee.
But wait, there’s more! Koho has two tiers, basically, a free and a paid option Regardless of which one you choose, Koho offers some incredibly unique programs and features, most notably its instant cashback.
Koho Personal, its free tier, earns 0.5% cashback, while Koho Premium, which costs about $9 per month, offers 2% on most purchases.
There is also a joint account option, which is similar to Koho Personal but allows two additional cardholders to use the account.
Although Koho operates entirely online and has no branches, customers can access and monitor their funds through Koho’s excellent mobile app or its attractive website.
All accounts come with attractive debit card options and are additionally compatible with Android Pay, Apple Pay, and Samsung Pay.
Koho doesn’t have a physical branch, which means you have to use a third-party bank or credit union to withdraw cash
Is Koho safe?
KOHO works in partnership with People’s Trust, a Canadian trust insured by the Canada Deposit Insurance Corporation (CDIC).
The People’s Trust holds money on behalf of Koho, meaning your money is safe in the event Koho goes out of business.
Koho has partnered with a CDIC-insured entity, even though customers don’t have funds, meaning your money is as safe as other Schedule banks.
Koho Advantages and Disadvantages
There’s a lot to like about Koho, but that doesn’t mean you should sign up right away (even though it’s free). It’s always a good idea to look at flaws and see if they’re a deal breaker for you. These are the advantages and disadvantages of Koho Reviews.
Advantages
Cashback on purchases: Cashback benefits are rare for prepaid cards and you can get up to 3% with Koho.
Interest earned on deposits: Koho is the only prepaid credit card that gives you interest on your deposits.
Focus on Financial Freedom: With Roundups, Savings Goals, and Financial Coaching, Koho wants to help you improve your finances.
Disadvantages
Premium benefits come at a cost: Some good benefits, including no foreign transaction fees and credit building tools, are available only with a premium account or without paying additional fees.
No insurance benefits: You don’t get any travel, mobile device, or purchase insurance with this card.
Final Thoughts
As you can tell from the Koho reviews, I think Koho is great. When the card was first launched, it was innovative and added more features that benefited users.
The potential to earn cash back and interest on deposits on prepaid credit card purchases are incredible.
I hope some of the big banks take notice of what Koho is doing and implement some features on their cards.
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