KOHO vs EQ Bank: Which Canadian Digital Bank Should You Choose? (2025)

October 29, 2025

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Choosing between KOHO vs EQ Bank means deciding between two very different approaches to digital banking in Canada—KOHO offers a prepaid Mastercard system with powerful budgeting tools and automatic savings features, while EQ Bank delivers traditional chequing accounts with some of the highest interest rates available on everyday banking, plus a flexible prepaid card for spending and travel.

Key Takeaways

EQ Bank offers a personal account earning up to 3.00% interest rate with $2,000+ monthly direct deposit, unlimited transactions, and the EQ Bank Card with 0.5% cash back and zero FX fees
KOHO provides prepaid cards with up to 3.5% interest on entire balance, 0.5-2% cash back on everyday purchases, and built-in budgeting tools like RoundUps and Goals
Best for traditional banking: EQ Bank offers no fee chequing accounts that function like regular bank accounts with bill payments, Interac e-Transfers, and free ATM withdrawals across Canada
Best for spending control: KOHO prepaid Mastercard prevents overspending and debt while offering automated savings features and credit building options
Interest rates: EQ Bank Personal Account pays 1.00% base rate (3.00% with direct deposit); KOHO Essential pays 2.5%, Extra 3%, Everything 3.5%
Fees: Both avoid monthly fees—EQ Bank has no minimum balance requirements; KOHO Essential waives its $4 monthly fee with direct deposit or $1,000 monthly deposit
Cash advances: Neither specializes in emergency cash, but Bree offers interest-free advances up to $500 with no credit check—a better option than overdraft protection

KOHO vs EQ Bank Comparison Chart

Feature	KOHO	EQ Bank
Account Type	Prepaid Card	Bank Account + Prepaid Card
Monthly Fees	$0-$19 (waivable)	$0
Interest Rate	2.5-3.5% on entire balance	1.00-3.00% on account balance
Cash Back	0.5-2% on purchases	0.5% on EQ Bank Card
Minimum Balance	None	None
Free ATM Withdrawals	No (charges apply)	Yes (reimbursed in Canada)
Foreign Exchange Fees	1.5% or 0% (Extra/Everything)	0% (Mastercard rate only)
Credit Building	Yes ($5-$10/month)	No
Overdraft Protection	No (prepaid)	No
Best For	Budgeters, savers	Traditional banking + travel

What are KOHO and EQ Bank?

KOHO is a Toronto-based financial technology company founded in 2014 that offers prepaid Mastercards paired with a spending and savings account, providing features like cash back, high interest savings, automated budgeting tools, and optional credit building without requiring a credit check.

KOHO partners with Peoples Trust Company to hold funds securely with CDIC protection and operates entirely online through its mobile app and website with no physical branches. The prepaid card model means you can only spend what you've loaded, preventing debt and making it an attractive option for Canadian residents who want spending guardrails.

EQ Bank is the digital banking platform launched in 2016 by Equitable Bank, Canada's seventh-largest bank, offering online bank accounts that combine features of traditional chequing accounts with competitive interest rates on savings accounts, plus guaranteed investment certificates and international money transfers.

EQ Bank accounts function like regular bank accounts from traditional banks but without monthly fees or minimum balances. You can earn interest on your balance, pay bills, send free Interac e-Transfers, and use the EQ Bank Card—a prepaid Mastercard that earns cash back and offers free ATM withdrawals across Canada with zero foreign transaction fees.

How Does EQ Bank Differ From KOHO?

Account Type and Access

KOHO operates exclusively as a prepaid card system. You load money onto your KOHO prepaid Mastercard and spend from that balance. It functions like a hybrid between a debit card and prepaid cards, giving you control over spending since you can't go into debt or access credit.

EQ Bank provides traditional bank accounts that work like chequing accounts at the big banks. The EQ Bank Personal Account offers unlimited transactions, bill payments, direct deposit capabilities, and Interac e-Transfers—all the everyday banking features Canadians expect (EQ Bank).

Winner: EQ Bank for those seeking full-featured bank account management with electronic fund transfers and automated payments. KOHO wins for those who specifically want a prepaid card to control spending.

Chequing Accounts

KOHO doesn't offer traditional chequing accounts. Instead, you get a spending account accessed through prepaid Mastercards. You can send Interac e-Transfers and pay bills, but there's no traditional account number for receiving paper cheques or some types of direct deposit.

EQ Bank Personal Account functions as a true no fee chequing account with:

Unlimited free transactions
Free Interac e-Transfers (unlimited)
Bill payments at no cost
Direct deposit capabilities
Up to 3.00% interest rate with $2,000+ monthly direct deposit (otherwise 1.00% base rate)
No monthly fees or minimum balance requirements (EQ Bank)

EQ Bank accounts provide instant access to funds and can receive deposits like traditional bank accounts. You can also open a Joint Account shared with up to 3 other people.

Winner: EQ Bank offers true chequing accounts with all traditional banking features. KOHO's prepaid model works for spending but lacks full chequing account functionality.

Savings Accounts and Interest Rates

KOHO pays interest on your entire balance automatically across all tiers:

Essential: 2.5% interest rate
Extra: 3% interest rate
Everything: 3.5% interest rate

Interest is paid monthly and calculated daily on your whole balance—both spending and savings portions. KOHO also offers savings features like Goals (visual savings targets), Vault (separate savings bucket), and RoundUps (automatic savings from purchase rounding) (KOHO Financial).

EQ Bank separates everyday banking from dedicated high interest savings:

Personal Account: 1.00% base rate, or 3.00% with $2,000+ monthly direct deposit
Notice Savings Account: 3.00% (10-day notice) or 3.05% (30-day notice) - requires advance notice to withdraw funds
Registered Savings Accounts: TFSA, RRSP, FHSA all pay 1.75% interest rate
US Dollar Account: High interest on USD balances (EQ Bank)

EQ Bank accounts earn interest paid monthly with no minimum balances required. The Notice Savings Account offers competitive savings rates for money you don't need instant access to.

Winner: Tie. KOHO offers simpler, automatic interest on entire balance up to 3.5%. EQ Bank offers higher potential (3.00-3.05%) but requires direct deposit or advance withdrawal notice.

Fees

KOHO Monthly Fees:

Free plan: $0
Essential: $4/month (waived with $1,000+ monthly deposit or direct deposit)
Extra: $12/month ($18 if billed monthly)
Everything: $19/month ($22 if billed monthly)

KOHO Transaction Fees:

ATM withdrawals: $2 domestic, $4 international
Foreign exchange fees: 1.5% (Free/Essential) or 0% (Extra/Everything)
No fees for Interac e-Transfers or bill payments

EQ Bank:

$0 monthly fees on all accounts
No minimum balances to avoid fees
Free ATM withdrawals anywhere in Canada (fees reimbursed within 10 business days)
No foreign transaction fees on EQ Bank Card (Mastercard conversion rate applies)
No hidden fees for everyday banking (EQ Bank)

Winner: EQ Bank for completely fee-free everyday banking. KOHO requires upgraded plans to eliminate foreign exchange fees, though the Essential plan is effectively free with direct deposit.

Spending and Saving Tools

KOHO excels with built-in budgeting tools:

RoundUps: Automatically rounds purchases to nearest dollar and saves difference
Goals: Visual savings targets with progress tracking
Vault: Separate savings space hidden from spending balance
Real-time notifications: Instant spending alerts
Spending categorization: Automatic tracking by category
Financial Coach: Access to certified coaches on premium plans (KOHO Financial)

EQ Bank offers basic savings features:

Multiple accounts (up to 8 personal accounts for different savings goals)
Automated transfers between EQ Bank accounts
Savings goals tracking in Notice Savings Account
Bill payment scheduling

EQ Bank accounts focus more on providing competitive interest rates and traditional banking rather than advanced budgeting tools.

Winner: KOHO by a significant margin for automated savings and budgeting tools. EQ Bank provides basic features suitable for those who avoid dealing with complex financial apps.

Credit Building

KOHO offers optional credit building programs:

Credit Building: $5-$10/month depending on plan
Opens $225 line of credit reported to Equifax
You set utilization rate (recommended under 10%)
No actual credit usage—just positive payment reporting
Guaranteed approval regardless of credit history (KOHO Financial)

EQ Bank does not offer any credit building program or tools. The EQ Bank Card is a prepaid card that won't impact your credit score (positive or negative). EQ Bank accounts and the EQ Card don't report to credit bureaus.

Winner: KOHO for those seeking to build credit. EQ Bank offers no credit building features.

Cash Back and Rewards

KOHO Cash Back:

Free: 0.5% on all purchases
Essential: 1% on groceries, dining, transportation
Extra: 1.5% on select categories + 0.25% everything else
Everything: 2% on select categories + 0.5% everything else
Up to 50% extra at partner merchants
Instant cash back added to account immediately

EQ Bank Card offers:

0.5% cash back on every purchase (paid monthly)
Higher cash back on first purchase (promotional)
Cash back deposited into linked Personal Account
Earn interest on EQ Card balance until spent (EQ Bank)

Winner: KOHO offers higher cash back potential (up to 2% on categories), but EQ Bank Card provides consistent 0.5% on everything with no categories to track—plus free ATM access.

International Money Transfers

KOHO offers international money transfers to 190+ countries through the app with competitive exchange rates and no hidden fees. However, it's not KOHO's primary feature and has less robust transfer options than dedicated services.

EQ Bank provides dedicated international money transfer services:

Send money to 100+ countries
Up to 5x cheaper than traditional banks
Competitive Mastercard exchange rates
No markup on foreign exchange fees
Direct bank-to-bank transfers (EQ Bank)

Note: Neither KOHO nor EQ Bank specializes in international transfers like services such as Wise.

Winner: Slight edge to EQ Bank for more competitive rates on international transfers compared to traditional banks.

Bank Account Management

KOHO manages everything through its mobile app:

Load funds via e-Transfer, direct deposit, or linked account
Instant virtual card, physical card delivery in ~10 days
Lock/unlock card instantly
Real-time transaction notifications
No paper cheques accepted
No traditional account number for some deposits

EQ Bank offers full online bank capabilities:

Desktop website and mobile app
Traditional account numbers for all deposit types
Receive paper cheques (mobile deposit not available)
Schedule bill payments and automated payments
Link external bank accounts
Full banking statements (EQ Bank)

Winner: EQ Bank for complete bank account management features. KOHO's prepaid model limits some traditional banking functions.

Security

Both KOHO and EQ Bank provide strong security:

KOHO:

Funds held by Peoples Trust Company (CDIC member)
CDIC protection up to $100,000
Instant card locking in app
Two-factor authentication
Encryption and fraud monitoring

EQ Bank:

Operated by Equitable Bank (Schedule I Canadian bank)
CDIC protection up to $100,000 per account category
Multiple layers of security and fraud monitoring
Instant card freeze for EQ Card
Zero liability protection through Mastercard (EQ Bank)

Winner: Tie. Both offer equivalent CDIC protection and modern security features.

What Are the Perks & Drawbacks of Each Card?

KOHO Perks

Prepaid Card Benefits:

No debt risk—can only spend what you load
No credit check required for guaranteed approval
Prevents overspending and overdraft fees
Interest earned on entire balance up to 3.5%
Instant cashback on purchases

Budgeting & Savings:

Best-in-class automated savings tools (RoundUps, Goals, Vault)
Real-time spending insights
Visual progress tracking for financial goals
Access to financial coach on premium plans

Travel & Spending:

Zero FX fees on Extra and Everything plans
Works globally anywhere Mastercard accepted
Virtual card available immediately
Apple Pay and Google Pay compatible

KOHO Drawbacks

Not a traditional bank account—limited functionality for some banking needs
ATM fees of $2-$4 per withdrawal
Lower cash back rates (max 2%) compared to some credit cards
Credit building only reports to Equifax, not TransUnion
Monthly fees unless you waive Essential or accept Free plan limitations
Can't deposit paper cheques
No overdraft protection (though this is also a benefit for spending control)

EQ Bank Perks

True Banking Features:

Functions like traditional chequing accounts with full bank account capabilities
Unlimited free transactions and Interac e-Transfers
Free ATM withdrawals anywhere in Canada (reimbursed)
Can receive all deposit types including paper cheques
Up to 3.00% interest rate on Personal Account with direct deposit

EQ Bank Card:

0.5% cash back on all purchases
Zero foreign transaction fees (Mastercard rate only)
Free ATM access across Canada
Earn interest on card balance until spent
No annual fees or monthly fees

Competitive Rates:

Among highest interest rates for everyday banking in Canada
Notice Savings Account offers 3.00-3.05% for funds you don't need immediately
Guaranteed investment certificates with competitive rates
No minimum balances required (EQ Bank)

EQ Bank Drawbacks

Online bank only—no physical branches for in-person service
EQ Bank Card must be loaded separately (not direct spending from account)
Limited budgeting tools compared to KOHO
No credit building options
EQ Card not available in Quebec
Lower cash back (0.5%) on everyday purchases compared to KOHO's premium tiers
Can't deposit cash
Mobile cheque deposit not available

FAQs

Is KOHO a prepaid card?

Yes, KOHO is a prepaid card system. The KOHO prepaid Mastercard requires you to load funds before spending, functioning like reloadable prepaid cards rather than traditional credit cards. You can only spend what you've preloaded, which prevents debt and overdraft fees. Unlike regular prepaid cards, KOHO offers additional features like interest on entire balance, cash back rewards, automated savings tools, and optional credit building programs. This makes KOHO prepaid Mastercards more feature-rich than basic prepaid cards while maintaining the spending control benefits.

Where is KOHO accepted?

KOHO prepaid Mastercard is accepted anywhere Mastercard is accepted globally—over 210 countries and millions of merchants worldwide. This includes online purchases, in-store shopping, and contactless payments through Apple Pay and Google Pay. You can use your KOHO Extra Mastercard or other KOHO plans for everyday purchases like groceries, dining, transportation, and online shopping. For international spending, the Extra and Everything plans eliminate foreign exchange fees entirely, while Free and Essential plans charge 1.5% FX fees. KOHO works like any Mastercard for payment processing.

Is EQ Bank safe and legitimate?

Yes, EQ Bank is completely safe and legitimate. EQ Bank is the digital banking platform of Equitable Bank, Canada's seventh-largest chartered bank and a Schedule I financial institution regulated federally. All EQ Bank accounts are eligible for CDIC protection up to $100,000 per insured category per depositor, providing the same deposit insurance as big banks. Equitable Bank has been operating since 1970 and has over $8 billion in customer deposits. EQ Bank uses advanced encryption, multi-factor authentication, and fraud monitoring to protect accounts. The platform has been named one of Forbes' Best Banks in Canada for five consecutive years (EQ Bank).

Can I use KOHO and EQ Bank together?

Yes, many Canadians successfully use KOHO and EQ Bank together for different financial needs. You might use EQ Bank Personal Account for your primary everyday banking—receiving your paycheck via direct deposit, paying bills, and earning 3.00% interest—while using KOHO Extra Mastercard for travel spending with no foreign transaction fees and built-in budgeting tools. Or use EQ Bank for high interest savings in the Notice Savings Account while using KOHO's prepaid card for controlled spending and credit building. The two services complement each other: EQ Bank offers traditional banking features with competitive rates, while KOHO provides spending control and automated savings features. Both can link to external bank accounts for easy transfers.

KOHO or EQ Bank: Which One Deserves Your Money

Choose KOHO if you:

Want a prepaid card to control spending and avoid debt
Need strong budgeting tools and automated savings features (RoundUps, Goals, Vault)
Want to build credit with guaranteed approval credit building program
Prefer all-in-one spending and saving with interest on entire balance
Travel internationally often and want zero FX fees (Extra or Everything plans)
Like instant cashback and real-time spending notifications
Want guaranteed approval without credit checks

Choose EQ Bank if you:

Need full-featured bank account with traditional chequing accounts functionality
Want the highest interest rates on everyday banking (up to 3.00% on Personal Account)
Prefer completely fee-free banking with no monthly fees or minimum balances
Need free ATM withdrawals across Canada
Want a prepaid card (EQ Card) with zero foreign exchange fees for travel
Value traditional banking features: bill payments, unlimited transactions, direct deposit
Don't need credit building or advanced budgeting tools

Choose Bree if you:

Need emergency cash or additional cash without interest charges
Want cash advances up to $500 at 0% interest
Prefer no monthly fees (pay optional tips only)
Don't want credit checks affecting your score
Need better cash flow management during unexpected expenses

Many Canadian residents use both services strategically: EQ Bank Personal Account for everyday banking and high interest savings, KOHO prepaid cards for controlled spending and travel, and Bree for interest-free emergency cash advances when unexpected expenses arise. This combination provides comprehensive financial management—traditional banking, spending control, and emergency funding without high fees.