KOHO and EQ Bank are both popular Canadian digital banks — but they were built for fundamentally different financial jobs. If you are trying to choose between them, or wondering whether you need both, this comparison will help.
The core difference
KOHO is a spending and budgeting platform with a prepaid Visa card at its centre. It is designed to help you manage money — control where it goes, earn cashback when you spend, and build healthy financial habits.
EQ Bank is a savings and banking platform with a high-interest savings account at its centre. It is designed to help you grow money — earn more interest than a Big Bank, while having enough daily banking functionality to use it as a real bank account.
KOHO: what you get
Account structure:
- Prepaid Visa card (no credit check, any Canadian adult qualifies)
- Spending categorization and budgeting tools
- Roundup savings (round up purchases to the nearest dollar; difference goes to savings)
- Automatic savings rules (save a percentage of deposits automatically)
- Early payroll deposit (access payroll up to 3 days early)
- Overdraft coverage (up to $250, called Cover)
Cashback (varies by plan):
| Plan | Monthly fee | Cashback rate |
|---|---|---|
| Essential (free) | $0 | 1% on groceries and transport |
| Extra | $9/mo or $84/yr | 2% on groceries, transport, restaurants |
| Everything | $19/mo or $180/yr | 2% everywhere + higher interest |
Credit Building: A paid add-on (~$10/month) that opens a small secured credit facility and reports to credit bureaus monthly. Over 6–12 months of on-time payments, this builds or rebuilds your credit score. Unique in the Canadian digital bank space.
Savings interest rate:
- Base (free tier): ~0.5%
- Extra tier: ~2.5%
- Everything tier: ~3.5%
(EQ Bank’s standard rate is ~3.75% on the free account — no subscription required.)
EQ Bank: what you get
Account structure:
- Savings Plus Account: HISA with ~3.75% on all balances
- Functions as a full bank account: payroll deposits, bill payments, Interac e-Transfers
- EQ Bank Card: no-fee Mastercard debit with 0.5% cashback and no foreign transaction fee
- TFSA and RRSP accounts at the same rate
- GICs (3 months to 10 years)
- US dollar account
- International money transfers (via Wise partnership)
Fee structure:
- No monthly fee
- No minimum balance
- Free e-Transfers, free bill payments, free debit transactions
- No foreign transaction fee on EQ Bank Card
Best for savings: EQ Bank’s ~3.75% HISA is one of the top rates in Canada with no subscription, no conditions, and no minimum balance.
Head-to-head comparison
| Feature | KOHO | EQ Bank |
|---|---|---|
| Primary design | Spending + budgeting | Savings + banking |
| Free tier savings rate | ~0.5% | ~3.75% |
| Best tier savings rate | ~3.5% (paid plan) | ~3.75% (free) |
| Cashback on purchases | 1%–2% (grocery/transport) | 0.5% (all purchases, EQ Card) |
| Credit building | Yes (paid add-on) | No |
| Interac e-Transfer | Yes | Yes |
| Bill payment | Yes | Yes |
| GICs | No | Yes |
| Registered accounts (TFSA/RRSP) | No | Yes |
| Currency: USD account | No | Yes |
| ATM access | Visa-enabled ATMs (fees may apply) | Interac-enabled ATMs |
| Monthly fee | $0–$19 | $0 |
| CDIC insurance | Via Peoples Trust | Via Equitable Bank |
| Credit card functionality | No (prepaid Visa only) | No (debit card only) |
| Budgeting/spending analytics | Yes — core feature | Basic |
When to choose KOHO
Choose KOHO if:
- You want cashback on everyday spending (groceries, restaurants, transport)
- You are working on building or rebuilding your credit score
- You want structured budgeting tools and spending categories
- You need overdraft-style coverage (Cover up to $250)
- You are getting started financially and want spending guardrails
- You want access to payroll a few days early
Choose KOHO over EQ Bank for:
- Cashback rewards on daily spending (KOHO’s rates on specific categories beat EQ Bank’s flat 0.5%)
- Credit building (EQ Bank has no equivalent)
- Budgeting structure and savings automation
When to choose EQ Bank
Choose EQ Bank if:
- Your priority is earning the most interest on your savings
- You want a genuine full-featured bank account (payroll, bills, transfers) with no fees
- You want GIC options or registered accounts (TFSA, RRSP)
- You are comfortable with a modest debit card rather than a Visa prepaid
Choose EQ Bank over KOHO for:
- HISA rate — EQ Bank’s free tier (~3.75%) beats KOHO’s best paid tier (~3.5%) with no monthly cost
- Registered accounts (TFSA, RRSP, RRIF, FHSA) — KOHO has none
- GICs
- Long-term savings goals
Using both: the optimal setup
Many Canadians use KOHO and EQ Bank for different jobs:
- KOHO: Daily spending Visa card, cashback on groceries, budgeting, credit building
- EQ Bank: Emergency fund, TFSA savings, RRSP GICs, payroll deposit receiving account
Payroll deposits to EQ Bank earn 3.75% from day one. Transfer your spending budget to KOHO as needed for the cashback on purchases. Savings stay in EQ Bank working hard; spending money flows through KOHO earning cashback.
There is no fee conflict. Both accounts are free at the base level.
Verdict
If you had to choose one: EQ Bank wins on financial efficiency — higher savings rate, no fees, full banking features, registered accounts.
But if your money habits need structure — if spending is what you need to control rather than savings — KOHO’s budgeting tools and cashback make it the better daily account.
The ideal answer: both, for different jobs.