Digital-first options like KOHO and Tangerine have gained tremendous popularity. Both online banks offer budget-friendly alternatives to traditional banks with high banking fees, but with key differences that might make one a better fit for your specific needs.
If you're weighing your options in the KOHO vs Tangerine debate, this comprehensive comparison will help you decide which service aligns better with your financial goals.
Key Takeaways
- KOHO is a fintech company offering a hybrid spending/savings account with a prepaid card, budgeting tools, and optional credit building services
- Tangerine is a subsidiary of Scotiabank providing full banking services including chequing accounts, high interest savings accounts, credit cards, mortgages, and investment products
- KOHO excels in spending management, cash back on prepaid cards, and budgeting tools
- Tangerine shines in offering comprehensive banking services, free Scotiabank ATMs access, and registered accounts (TFSAs, RRSPs)
- Both financial institutions offer competitive interest rates, mobile apps, and lower fees compared to traditional banks and big banks
- Neither offers what Bree provides: quick, interest-free cash advances up to $500 with no credit checks and transparent terms
KOHO vs Tangerine Comparison Guide
Need a simpler option? For those times when neither of these services meets your immediate cash flow needs, Bree offers interest-free advances up to $500 with no hidden fees or fine print.
How Do Their Account Types Compare?
Tangerine and KOHO approach account structures quite differently, reflecting their distinct business models as financial institutions.
KOHO Account Options
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KOHO offers a hybrid account combining features of both chequing and savings accounts. This unified approach means your entire balance earns interest while remaining accessible for everyday spending and debit purchases.
KOHO account plans include:
- KOHO Basic (Free): Includes prepaid card, 1% cash back on select categories, and earning up to 2.25% interest with direct deposits
- KOHO Essential ($4/month or $48/year): Enhanced cash back and interest rates
- KOHO Extra ($9/month or $84/year): 1% cash back on groceries, bills, eating & drinking, 0.25% on other purchases, no fx fees, and one free international ATM withdrawal monthly
- KOHO Everything ($15/month or $177/year): Highest interest rates (up to 4.00%) and cash back percentages (up to 2%)
Each KOHO account allows you to set savings goals, access budgeting tools, and manage your money through the highly-rated mobile app. Unlike traditional banks, KOHO doesn't require a minimum balance requirement to maintain your account or avoid fees.
Tangerine Account Options
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As a full-service digital bank, Tangerine provides distinct account types:
- No-Fee Daily Chequing Account: No monthly fees, unlimited transactions, free Interac e transfers, and free access to Scotiabank ATMs
- Tangerine Savings Account: Regular savings accounts with competitive interest rates
- Registered Savings Accounts: TFSA, RRSP, and RRIF options for tax advantages
- US Dollar Savings Account: For holding USD funds
- Business Savings Accounts: Multiple options for business banking needs
- GICs: Fixed-term guaranteed investment certificates
Tangerine's separation of accounts aligns with traditional banking structure, giving customers clarity between spending and saving purposes. Opening a new savings account with Tangerine often comes with promotional high interest rates for new customers.
For a personal account that combines the best of both worlds, consider what services and features matter most to you. Some customers prefer having a one-stop shop for all their banking needs, while others value the simplicity of KOHO's all-in-one approach.
Which Has Lower Fees?
Both KOHO and Tangerine position themselves as low-fee alternatives to traditional banks, but their fee structures differ.
KOHO Fees
- Basic account: No monthly fees or annual fees
- Premium tiers: Monthly fees apply ($4-15/month)
- Foreign transactions: 1.5% fx fees (waived on premium accounts)
- ATM withdrawals: No KOHO fees, but third-party ATM service fees apply ($2-3 typical)
- Credit building service: $5-10/month
- Bill payments: Free
- Interac e transfers: Free
Tangerine Fees
- Chequing/Savings accounts: No monthly account fees
- Transactions: Unlimited transactions free
- Interac e transfers: Free Interac e transfers
- ATM withdrawals: Free at Scotiabank ATMs; $1.50 for non-Scotiabank ATMs (plus third-party fees)
- NSF fees: Up to $45 (can be avoided with overdraft protection)
- Credit cards: No annual fees for standard cards; Tangerine World Mastercard has additional benefits
When comparing basic accounts, both offer excellent low-fee options. However, Tangerine maintains a no-fee structure across all its core banking services, while KOHO introduces fees for premium features and services.
Who Offers Better Interest Rates?
Interest rates can significantly impact your savings growth over time. Both services offer competitive interest rates compared to traditional banks, but with different structures for earning interest.
KOHO Interest Rates
KOHO offers interest on your entire account balance—both spending and savings portions:
- Basic account: Up to 2.25% with direct deposits
- Essential account: Up to 2.5%
- Extra account: Up to 3.5%
- Everything account: Up to 4.00%
These high interest savings rates are significantly higher than what most traditional banks and big banks offer on regular savings accounts, making KOHO a solid option for high interest savings. The ability to earn interest on your full balance (not just in a dedicated savings account) is a key advantage when comparing interest rates between these financial institutions.
Tangerine Interest Rates
Tangerine's interest rates vary by account type:
- Chequing account: 0.10% (minimal interest)
- Tangerine Savings Account: Typically 0.70% regular rate, with promotional rates sometimes reaching 4-5% for new customers
- High interest savings account: Promotional rates for new clients
- GICs: Competitive fixed rates for guaranteed returns
Tangerine frequently offers a higher rate for new customers, which can be attractive for short-term savings goals, though these promotional rates eventually revert to the standard rate. Tangerine offers multiple savings accounts with different interest rate structures, giving customers flexibility in how they save.
For those focused primarily on earning interest, it's worth comparing the actual interest rate you'll receive long-term rather than being swayed by temporary promotional rates. KOHO's consistent interest rate on the entire balance might provide better returns over time compared to Tangerine's standard savings account rates.
A Different Approach: Bree
While KOHO and Tangerine focus on earning interest on your deposits, Bree takes a different approach to helping your financial situation:
- No interest charged on cash advances up to $500
- No minimum balance requirements to maintain
- Financial wellness tools to improve overall financial health
- Quick access to funds when unexpected expenses arise
Sometimes having access to interest-free funds when you need them is more valuable than earning small amounts of interest on savings.
Who Gives More Cashback Rewards?
Both KOHO and Tangerine provide cash back options, but their approaches to cash back rewards differ significantly.
KOHO Cashback
KOHO's prepaid card offers cash back on everyday purchases:
- Basic/Essential: 1% cash back on groceries, restaurants, transportation, and partner stores
- Extra: 1% cash back on groceries, bills, eating & drinking; 0.25% on all other purchases
- Everything: 2% cash back on groceries, bills, eating & drinking; 0.5% on all other purchases
- Partner stores: Up to 5% extra cash back at selected retailers and partner stores
The benefit of KOHO's cash back is that you earn it on a prepaid card using your own money for purchases, without the risks of credit card debt. Cash back is automatically applied to your KOHO account balance. This makes it an attractive option for those who want to avoid credit cards but still earn rewards on their spending.
Tangerine Cashback
Tangerine offers cash back through its credit cards:
- Money-Back Credit Card: 2% unlimited cash back in up to 3 spending categories of your choice; 0.5% on all other purchases
- Tangerine World Mastercard: Enhanced benefits with the same cash back structure, plus additional perks
Tangerine's higher cash back percentages come with the requirement of qualifying for a credit card, which may not be accessible to everyone. However, having no annual fees makes these cards attractive compared to other credit cards with similar rewards. The World Mastercard option provides additional benefits for those who qualify.
Both services allow you to customize spending categories to maximize your cash back potential based on your regular spending habits. The right choice depends on whether you prefer to use a prepaid card or a traditional credit card for your purchases.
What Credit Card Options Do KOHO and Tangerine Offer?
The card offerings between these two financial institutions highlight their fundamental differences.
KOHO Card Options
KOHO doesn't offer traditional credit cards. Instead, they provide a prepaid card that functions like a debit card but with credit card-like benefits:
- Prepaid Card: Accepted anywhere Mastercard is accepted
- No credit check required: Accessible to those with limited or poor credit
- Cash back rewards: As detailed above
- Spending only your own money: Helps prevent debt accumulation
- Different card designs: Multiple aesthetic options
- Mobile wallet integration: Compatible with Apple Pay and Google Pay
- No annual fee: Never pay for using your prepaid card
The KOHO prepaid card is an excellent option for those looking to avoid the temptations and risks that come with traditional credit cards while still enjoying rewards on purchases. For many users, this prepaid card provides all the functionality they need without the drawbacks of traditional credit products.
Tangerine Card Options
Tangerine offers traditional credit products:
- Money-Back Credit Card: No annual fee, 2% cash back in chosen spending categories
- Tangerine World Mastercard: Enhanced version with additional travel benefits and insurance
- Visa Debit Card: Comes with chequing accounts for everyday debit purchases
Tangerine's credit cards require credit approval with minimum income requirements (typically $12,000+ annual income). These cards offer the full functionality of traditional credit cards, including the ability to pay bills, make online purchases, and build credit history through responsible use.
Tangerine offers credit cards with competitive benefits without charging annual fees, which sets them apart from many other credit card issuers. The World Mastercard, in particular, provides additional perks typically found on premium cards that charge annual fees.
Both providers offer ways to manage your cards through their respective mobile apps, with features for tracking spending, viewing transactions, and managing security settings. The choice between a prepaid card and a traditional credit card depends largely on your financial habits and preferences.
Can You Build Credit With KOHO or Tangerine?
Building or improving your credit score is an important financial goal for many Canadians. Both platforms offer pathways to credit building, but with different approaches.
KOHO Credit Building
KOHO offers a dedicated credit building service:
- Monthly subscription: $5-10/month
- No credit check required: Accessible regardless of credit history
- Reports to credit bureaus: Activity reported to major bureaus
- No risk of debt: Uses a secured line of credit model
- Potential for significant improvement: Many users see score improvements within 6 months
This innovative approach allows people to build credit without the traditional risks associated with credit products. KOHO's credit building service works by providing you with a small line of credit that you pay back monthly, with these payments reported to credit bureaus to establish positive payment history.
KOHO Essential users can access the credit building feature for a reduced monthly fee, making it an economical way to improve your credit score without paying annual fees or interest charges typically associated with secured credit cards.
Tangerine Credit Building
Tangerine takes a traditional approach to credit building:
- Credit cards: Standard credit reporting with responsible use
- No specific credit building program: Relies on conventional credit products
- Requires credit approval: May not be accessible to those with poor credit
- Full credit card features: Includes all benefits and risks of traditional credit
While Tangerine doesn't offer a dedicated credit improvement service, responsible use of their credit cards can help build your score over time. Making regular purchases and paying off the balance in full each month will establish positive credit history. This traditional approach to credit building works well for those who already qualify for their credit products.
For those with established credit who simply want to maintain or gradually improve their scores, Tangerine's credit cards provide a conventional path to credit building while offering cash back rewards.
Which Has the Better Mobile App Experience?
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In today's digital world, the quality of a financial service's mobile app can make or break the user experience. Both KOHO and Tangerine have invested heavily in developing user-friendly mobile apps.
KOHO Mobile App
KOHO's app is designed with money management at its core:
- Spending categorization: Automatic categorization of transactions
- Budgeting tools: Set goals and track progress
- RoundUp feature: Automatically saves your spare change into savings goals
- Real-time notifications: Instant updates on transactions
- Card controls: Lock your card instantly if lost
- Savings features: Visual tracking of progress toward savings goals
- User ratings: Highly rated on both iOS and Android platforms
- Digital wallet integration: Supports Apple Pay and Google Pay
The KOHO app makes it easy to manage your finances on the go, with intuitive interfaces for tracking spending, setting savings goals, and monitoring your cash back rewards. Users particularly appreciate the visual breakdown of spending categories and the ability to instantly freeze their card if it's misplaced.
Tangerine Mobile App
Tangerine's app focuses on comprehensive banking functions:
- Full banking services: Access to all account features
- ATM locator: Find nearby Scotiabank ATMs
- Cheque deposits: Deposit cheques using your phone camera
- Investment management: Monitor and manage investment products
- Insights tool: "Left to Spend" feature helps with budgeting
- Bill payments: Easily pay bills from within the app
- User ratings: Strong ratings on app stores (4.7/5 on iOS, 4.5/5 on Android)
- Interac e transfers: Send money easily
Tangerine's mobile app provides a full suite of banking features, allowing customers to manage multiple account types, investments, and credit cards all in one place. The app's design is clean and straightforward, making it easy to navigate between different services.
Both mobile apps offer excellent functionality with intuitive interfaces. KOHO's mobile app tends to be more focused on personal finance management and spending analysis, while Tangerine's mobile app provides a full suite of traditional banking features. The best choice depends on whether you prioritize budgeting tools or comprehensive banking services.
If you frequently use Interac e transfers, both apps make it easy to send money to friends and family without fees. For those who rely on mobile payment options, both support digital wallets, making it easy to pay with your phone at compatible terminals.
Are KOHO and Tangerine Safe and Secure?
Security is paramount when choosing a financial service provider. Both KOHO and Tangerine have robust security measures in place.
KOHO Security
Though not a bank itself, KOHO partners with Peoples Trust, a federally regulated financial institution:
- CDIC protection: Funds held through Peoples Trust are eligible for CDIC insurance (up to $100,000)
- Mastercard Zero Liability: Protection against unauthorized transactions
- Instant card locking: Freeze your card immediately through the app
- Enhanced security features: Biometric login options
Tangerine Security
As a subsidiary of Scotiabank, Tangerine offers bank-level security:
- CDIC insurance: Deposits protected up to $100,000 per eligible category
- Bank-grade encryption: High-level data protection
- Multi-factor authentication: Additional login security
- Fraud monitoring: Systems to detect suspicious activity
Both providers offer strong security measures, with Tangerine having the additional backing of one of Canada's largest banks.
Which is Better for Investments and Savings?
When it comes to growing your money over time, investment options and savings features become crucial for long-term financial planning.
KOHO Investment Options
KOHO focuses on spending and short-term savings rather than investments:
- No investment products: Doesn't offer investment portfolios or registered accounts
- High interest savings: Competitive interest rates on account balance
- Savings tools: Features like RoundUps and savings goals
- Limited long-term growth options: Not designed for retirement planning
- No TFSA or RRSP accounts: Cannot hold investments in tax-sheltered accounts
While KOHO excels at helping you save through budgeting tools and high interest on your balance, it lacks true investment products for long-term wealth building. For those looking primarily to manage day-to-day finances and earn a competitive interest rate on their savings, KOHO offers solid savings features without the complexity of investment management.
Tangerine Investment Options
Tangerine provides several investment vehicles:
- Core Portfolios: Low-fee investment portfolios
- Global ETF Portfolios: Diversified investment options across global markets
- GICs: Guaranteed Investment Certificates with fixed returns
- Registered accounts: TFSA, RRSP, and RRIF options for tax advantages
- RSP Loans: Loans specifically for retirement savings
- Financial advisor: Access to advice for investment decisions
Tangerine offers a variety of investment products designed for different financial goals and risk tolerances. Their investment approach is straightforward, with pre-built portfolios that make investing accessible to beginners. For more experienced investors, they offer global ETF portfolios that provide exposure to international markets.
One of the key advantages Tangerine offers is the ability to hold investments within registered accounts like TFSAs and RRSPs, providing tax advantages that can significantly enhance long-term growth. This integration of banking and investing under one roof makes it easy to transfer funds between accounts and maintain a holistic view of your finances.
Tangerine clearly has the advantage for those looking to build long-term wealth through investments. Their simplified investment approach makes it accessible for beginners while offering enough options for more experienced investors.
For Canadians looking to grow their money over the long term, especially for retirement planning, Tangerine offers all the features needed without having to open accounts at multiple financial institutions.
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FAQs
What are the cons of KOHO?
While KOHO offers many benefits, potential drawbacks include:
- Not a full-service bank (limited to spending and saving functions)
- No dedicated ATM network (potential service fees)
- Premium features require paying annual fees or monthly fees
- No investment products or registered accounts
- Limited to prepaid cards (no traditional credit products)
- No physical branches for in-person service
What are the disadvantages of Tangerine banks?
Potential limitations of Tangerine include:
- Lower interest rates on savings accounts compared to some competitors
- ATM fees apply when not using Scotiabank ATMs
- No physical branches for face-to-face service
- Credit products require good credit history and income verification
- Limited options for those looking to rebuild credit
- Fewer budgeting tools compared to dedicated fintech companies
What bank runs KOHO?
KOHO is not a bank itself but a fintech company. It partners with Peoples Trust, a federally regulated financial institution, to hold customer funds and provide CDIC insurance protection. This partnership allows KOHO to offer banking-like services without being a bank itself.
Do KOHO or Tangerine charge foreign transaction fees?
- KOHO: The basic account charges 1.5% in fx fees for foreign transactions. These fees are waived on Extra and Everything accounts.
- Tangerine: Charges a 2.5% foreign transaction fee on most transactions, though some credit card promotions may offer fee waivers.
What if I just need a small cash advance to cover expenses until payday?
If you're looking for a simple way to access funds between paycheques without the complexities of traditional banking, Bree offers interest-free cash advances up to $500 with a simple, transparent service model focused on financial wellness.
Can I get funds from KOHO or Tangerine immediately if I have an urgent expense?
Both KOHO and Tangerine operate on standard banking timelines for transfers and deposits. If you need immediate access to funds for an urgent expense, Bree offers same-day funding options to help cover unexpected costs without delay.
Which One Should You Choose: Tangerine or KOHO?
The right choice between KOHO and Tangerine depends on your specific financial needs and goals.
Consider KOHO if you:
- Want a simple, all-in-one spending and savings solution
- Need help with budgeting tools and tracking expenses
- Are looking to rebuild your credit score through credit building
- Prefer to avoid traditional credit card debt
- Want to earn cash back without qualifying for a traditional credit card
- Value high interest rates on your spending balance
- Don't need full banking services like registered accounts
Choose Tangerine if you:
- Need a full banking services replacement
- Want registered accounts for tax-advantaged savings (TFSA, RRSP)
- Frequently use ATMs and want free access at Scotiabank ATMs
- Are interested in investment products and mortgages
- Qualify for their credit cards and want higher cash back categories
- Need more traditional banking features like cheques
- Want a one-stop shop for all your financial needs
Consider Bree if you:
- Need quick access to cash between paycheques
- Want to avoid interest charges and hidden fees completely
- Don't want to impact your credit score
- Prefer a simple, transparent financial service with no fine print
- Need financial wellness tools to help budget better
- Want a service that prioritizes your financial health over profits
Many financially savvy Canadians actually use multiple services—KOHO for day-to-day spending management and cash back rewards, Tangerine for longer-term savings and investments, and Bree for those times when a short-term cash advance would help bridge a financial gap without incurring debt.
The TryBree Advantage: A Better Alternative for Short-Term Needs
While KOHO and Tangerine offer excellent services for daily banking and long-term savings, neither addresses the common challenge many Canadians face: occasional short-term cash flow gaps.
Bree fills this crucial need with:
- Interest-free cash advances up to $500
- No credit checks required to qualify
- No service fees or complicated terms
- Same-day funding options for urgent needs
- Simple repayment aligned with your payday
- Budgeting tools to improve financial wellness
- Transparent, ethical approach to financial services
When you need a financial buffer to handle unexpected expenses or bridge the gap until payday, Bree offers a smarter alternative to high-interest credit cards, overdraft fees, or payday loans.
Whichever option you choose for your primary banking needs, having Bree as part of your financial toolkit gives you peace of mind knowing you have access to interest-free funds when life throws unexpected expenses your way.
Citations
[1] https://www.koho.ca/
[2] https://www.tangerine.ca/
[3] https://www.koho.ca/accounts
[4] https://www.koho.ca/credit-building
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