KOHO launches 1.2% interest on savings account

Canada’s leading challenger bank KOHO makes waves in the fintech space today with the launch of its first no-fee savings account, KOHO Save. The product, now available in the KOHO app, offers a highly competitive 1.2% interest on a user’s entire balance, with no teaser rates and no minimum balance required.

Struggling with the additional pitfalls of Covid-19, the average Canadian now owes $73,523 in debt, up 2.2% from 20191. Perhaps more than ever, Canadians need financial tools that make their hard earned money work just as hard for them. The average interest rate offered by the big banks is only 0.05%, leaving Canadian consumers with a banking system that has not effectively evolved with their current needs.

Daniel Eberhard, KOHO CEO and founder

We’re excited to add KOHO Save to our product line as a simple and valuable money earning tool for Canadians. We’ve been able to build a savings tool that doesn’t follow the same restrictions of most other savings products on the market. People just want to access their money freely and earn a great interest rate. We think Save is a wonderful step in that direction.

Additionally, users on KOHO Save will have their entire balance held in trust at a CDIC member institution. In doing so, KOHO provides an increased level of insurance and peace of mind for users looking to load and save more money. CDIC insures eligible cash balances payable in Canada up to $100,000 per client per member institution within each insured category.

With the addition of KOHO Save, KOHO operates as both a chequing and savings account. This means users can spend, save, and earn, all in one place. Customers can simply opt into KOHO Save in the app and their entire balance will start earning 1.2% interest right away. No teaser rates, no minimum balance required, and truly no fees. And it doesn’t stop there. With KOHO, users always earn a minimum of 0.5% (up to 10%) cash back on every purchase as well, and an additional 2% on three major spending categories with the KOHO Premium account.

KOHO continues on their mission to simplify and democratize banking for Canadians, while making it essentially unavoidable to earn and save more money.