KOHO vs. Simplii: Why we like one much more

Money.ca / Money.ca

By Justin da Rosa

🗓️

Updated: September 16, 2024

Partners on this page provide us earnings.

Partners on this page provide us earnings.

KOHO and Simplii Financial aren’t your parents’ banks. And, in KOHO’s case, it isn’t even a bank at all. What they are is a more modern alternative to the big Canadian banks you already know all about. 

They’re both doing things a little differently than traditional banks. If you’re looking for a new place to do your day-to-day banking, you might want to give them a look – especially if you’re not a fan of paying high fees for few features and are a fan of earning high interest, cash back and other great things. Read on for all the details about these two Big Bank challengers.

My hot take

First, I have to be up-front and admit that I’m a KOHO user and former KOHO employee. I also still own shares in the company (perks of working for a startup). That said, it won’t stop me from giving an honest take.

Both KOHO and Simplii offer a no-fee version of their chequing account (though KOHO calls its accounts spending accounts). KOHO’s Essential account has its $4 per month account fee waived if you keep a balance of $1,000 or set up a recurring deposit (like your paycheque).

Simplii has more options for accounts, including TFSAs and RSPs and it also offers free withdrawals from any CIBC ATM. Another area it shines is with international transfers, offering those for free (with KOHO, you’ll need to use an external third-party app).

KOHO gets the nod when it comes to earning interest – you’ll earn 5% on your balance, regardless of the account tier you choose. They also offer cash back on purchases (1% cash back with the Essential plan, 1.5% cash back with the Extra plan, and 2% cash back with the Everything plan).

So, the verdict is…

It depends! You’ll need to figure out what you prioritize before you choose one or the other. If you want to bundle a chequing account with a TFSA or RSP, a credit card and access to free ATMs, while also easily sending money overseas, Simplii might be for you. If earning cash back and high interest sounds like your jam, you’d probably prefer KOHO.

Still undecided? We’ll break both options down in further detail over the next few sections.

At a glance

KOHO vs. Simplii: Savings accounts (that double as chequing accounts)

KOHO

KOHO’s spending accounts are like hybrid savings and chequing accounts. Somehow, they pack the best of both into one neat little package.

What you get with the Essential plan:

• $0-$4 per month (fee is waived if you keep a balance of $1,000 or set up a recurring payment)
• 1% cash back on groceries, transportation, food and drink
• 5% interest on your entire balance
• Free credit score
• Unlimited transactions

What you get with the Extra plan:

• $9 per month
• 1.5% cash back on groceries, transportation, food and drink
• 5% interest in your entire balance
• Free credit score
• Unlimited transactions
• 30% off Credit Building
• No foreign transaction fees

What you get with the Everything plan:

• $19 per month
• 2% cash back on groceries, transportation, food and drink
• 5% interest in your entire balance
• Free credit score
• Unlimited transactions
• 50% off Credit Building
• No foreign transaction fees

Simplii Financial

Simplii Financial offers a more traditional approach to its accounts. While KOHO packages its savings/chequing accounts into one, you’ll need two different accounts with Simplii to get a similar experience.

Simplii’s no-fee chequing account gives you no-fee daily banking, unlimited transactions and free withdrawals from CIBC ATMs.

Its high-interest savings account offers interest rates that range from 0.4% to 5.25%. Why the range? Well, hidden within the website you’ll learn that to earn that whopping 5.25% interest, you’ll need to keep a balance over $1 million in your account. If that doesn’t sound possible (which, it shouldn’t, for 99% of Canadians), you can expect to earn much less. Here’s how it breaks down:

• Earn 0.4% for balances up to $50,000
• Earn 0.65% with a balance between $100,001 and $500,000
• Earn 1.25% with a balance between $500,000.01 to $1,000,000.00
• Earn 5.25% if your balance is over $1,000,001

Winner: KOHO

It just does more in a neater package. There are also options depending on how much you want to spend per month.

Simplii Financial Cash Back Visa Card vs. KOHO card

Simplii Financial™ Cash Back Visa* Card

3.0

3.0

10% back

Welcome offer

Good

Suggested credit score

Apply Now

10% cash back on eligible restaurant, bar and coffee shop purchases for your first 4 months. Up to $500 spend†. Sign up by October 31, 2024 and get a $100 Skip Digital Gift Card after you spend $100 with your new Simplii Cash Back Visa card by November 30, 2024†

Expires

Oct 31, 2024

10% cash back on eligible restaurant, bar and coffee shop purchases for your first 4 months. Up to $500 spend†. Sign up by October 31, 2024 and get a $100 Skip Digital Gift Card after you spend $100 with your new Simplii Cash Back Visa card by November 30, 2024†

Expires

Oct 31, 2024

Apply now

• Overview
• Rewards
• Rates & Fees

Simplii offers a cash back Visa card, a no-fee rewards card with a purchase interest rate of 20.99%‡ and a cash interest rate of 22.99%‡. It has a tiered reward program that gives you 4% cash back† on restaurants, bars and coffee shops; 1.5% cash back† on gas, groceries and pre-authorized payments; and 0.5% on all other purchases†.

Pros

• Extremely high cash back on bars and restaurants

• Solid cash back on groceries, drug store, gas and prepayments

• No annual fee

• Up to three additional cards free of charge

Cons

• Cash back applied as year-end statement credit

Eligibility

Good

Recommended Credit Score

$15,000

Required Annual Household Income

Recommended Credit Score

Good

Required Annual Household Income

$15,000

4%

Earn 4$ on eligible restaurant, bar and coffee shop purchases, up to $5,000 per year†

1.5%

Earn 1.5% on eligible gas, groceries, drugstore purchases and pre-authorized payments, up to $15,000 per year† - after that 0.5% unlimited

0.5%

Earn 0.5% on all other credit card purchases with no limit on how much you can earn†

Earn 4$ on eligible restaurant, bar and coffee shop purchases, up to $5,000 per year†

4%

Earn 1.5% on eligible gas, groceries, drugstore purchases and pre-authorized payments, up to $15,000 per year† - after that 0.5% unlimited

1.5%

Earn 0.5% on all other credit card purchases with no limit on how much you can earn†

0.5%

20.99%

Purchase APR ‡ Purchase Interest Rate

22.99%

Balance Transfer Rate ‡ Balance Transfer Interest Rate

22.99%

Cash Advance APR ‡ Cash Advance Interest Rate

$0

Annual Fee for primary cardholder and up to 3 additional cards

2.5%

Foreign Transaction Fee

Purchase APR

20.99%

Balance Transfer Rate

22.99%

Cash Advance APR

22.99%

Annual Fee

$0

Foreign Transaction Fee

2.5%

Overview

Simplii offers a cash back Visa card, a no-fee rewards card with a purchase interest rate of 20.99%‡ and a cash interest rate of 22.99%‡. It has a tiered reward program that gives you 4% cash back† on restaurants, bars and coffee shops; 1.5% cash back† on gas, groceries and pre-authorized payments; and 0.5% on all other purchases†.

Pros

• Extremely high cash back on bars and restaurants

• Solid cash back on groceries, drug store, gas and prepayments

• No annual fee

• Up to three additional cards free of charge

Cons

• Cash back applied as year-end statement credit

Eligibility

Good

Recommended Credit Score

$15,000

Required Annual Household Income

Recommended Credit Score

Good

Required Annual Household Income

$15,000

Rewards

4%

Earn 4$ on eligible restaurant, bar and coffee shop purchases, up to $5,000 per year†

1.5%

Earn 1.5% on eligible gas, groceries, drugstore purchases and pre-authorized payments, up to $15,000 per year† - after that 0.5% unlimited

0.5%

Earn 0.5% on all other credit card purchases with no limit on how much you can earn†

Earn 4$ on eligible restaurant, bar and coffee shop purchases, up to $5,000 per year†

4%

Earn 1.5% on eligible gas, groceries, drugstore purchases and pre-authorized payments, up to $15,000 per year† - after that 0.5% unlimited

1.5%

Earn 0.5% on all other credit card purchases with no limit on how much you can earn†

0.5%

Rates & Fees

20.99%

Purchase APR ‡ Purchase Interest Rate

22.99%

Balance Transfer Rate ‡ Balance Transfer Interest Rate

22.99%

Cash Advance APR ‡ Cash Advance Interest Rate

$0

Annual Fee for primary cardholder and up to 3 additional cards

2.5%

Foreign Transaction Fee

Purchase APR

20.99%

Balance Transfer Rate

22.99%

Cash Advance APR

22.99%

Annual Fee

$0

Foreign Transaction Fee

2.5%

†Terms and conditions apply. Click ‘Apply Now’ for complete details. This offer is not available for residents of Quebec

‡"Purchase" means any Transaction other than a Cash Advance, Balance Transfer or Convenience Cheque. "Cash" means a Cash Advance, Balance Transfer and Convenience Cheque. Interest rates may change from time to time.

Koho Mastercard

3.9

3.9

Poor

Suggested credit score

Apply Now

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Sign up to receive the latest news, tips and offers by email

Apply now

• Overview
• Rewards
• Rates & Fees

While not a credit card, KOHO’s card is a prepaid Mastercard. It offers 5% interest earned on your balance, and up to 2% cash back on cash back on groceries, transportation, food and drink.

Pros

• A no-fee account option

• Earn up to 5% cash back on your purchases

• Accepted worldwide, wherever Mastercard is accepted

• Four account tiers, so there’s something for everyone

• Earn interest on your account

• RoundUps feature helps you save

• Financial coaching is available

• Features like Credit Building (to help you build your credit history) and Cover (to protect you from overdrawing your account)

• Compatible with Apple Pay

• Joint account option for families and couples

Cons

• No physical branches or tellers

• No RRSP, TFSA or RESP accounts

• Customer service not on par with the big banks

• Missing some banking features, like wire transfers, currency exchanges and multiple lines of business like financial planning, mortgages and insurance

Eligibility

Poor

Recommended Credit Score

$0

Required Annual Personal Income

$0

Required Annual Household Income

Recommended Credit Score

Poor

Required Annual Personal Income

$0

Required Annual Household Income

$0

1%

cash back on groceries and transportation

3%

interest earned on your account balance

cash back on groceries and transportation

1%

interest earned on your account balance

3%

$0

Annual Fee Option to add credit building (price available in app)

Annual Fee

$0

Overview

While not a credit card, KOHO’s card is a prepaid Mastercard. It offers 5% interest earned on your balance, and up to 2% cash back on cash back on groceries, transportation, food and drink.

Pros

• A no-fee account option

• Earn up to 5% cash back on your purchases

• Accepted worldwide, wherever Mastercard is accepted

• Four account tiers, so there’s something for everyone

• Earn interest on your account

• RoundUps feature helps you save

• Financial coaching is available

• Features like Credit Building (to help you build your credit history) and Cover (to protect you from overdrawing your account)

• Compatible with Apple Pay

• Joint account option for families and couples

Cons

• No physical branches or tellers

• No RRSP, TFSA or RESP accounts

• Customer service not on par with the big banks

• Missing some banking features, like wire transfers, currency exchanges and multiple lines of business like financial planning, mortgages and insurance

Eligibility

Poor

Recommended Credit Score

$0

Required Annual Personal Income

$0

Required Annual Household Income

Recommended Credit Score

Poor

Required Annual Personal Income

$0

Required Annual Household Income

$0

Rewards

1%

cash back on groceries and transportation

3%

interest earned on your account balance

cash back on groceries and transportation

1%

interest earned on your account balance

3%

Rates & Fees

$0

Annual Fee Option to add credit building (price available in app)

Annual Fee

$0

Winner: Tie

Simplii’s cash back rewards are more attractive, but KOHO’s earned interest is an appealing feature as well.

KOHO vs. Simplii - Investment options

This one isn’t really a competition. Since KOHO doesn’t currently offer investment options, Simplii is the clear winner. Let’s dig in to see what they offer. 

Winner: Simplii Financial

Simplii vs. KOHO app

Both Simplii and KOHO offer modern apps targeted to the digital-savvy saver/spender. With Simplii’s app, you can pay your bills, send, request and receive funds, set up recurring payments – you know, everything a banking app should do.

KOHO’s app does all that and just a little bit more. In the KOHO app, you can view your spending insights and add products like Credit Building and Cover. It also offers built-in savings tools like RoundUps (which let you round every purchase up to the nearest $1), My Vault, which helps you contribute to savings and My Savings Goals, which, you guessed it, lets you set and track savings goals.  

Winner: KOHO

KOHO takes this category with its feature-filled app.

Simplii vs. KOHO fees

When it comes to fees, it pays – literally – to look at the fine print. When a bank or fintech says there are no fees, there are often a few sneaky costs buried in the fine print. Let’s find out what Simplii Financial and KOHO truly charge for their accounts.

For our purposes, we’ll look at Simplii’s no-fee chequing account. While there are no monthly fees, you can be charged $45 if you dip into overdraft. Alternatively, overdraft protection can be purchased for $4.97 plus 19% of the amount accessed.

KOHO, on the other hand, might charge a monthly fee – based on the tier you choose.

The Essential plan has no monthly fee if you keep a minimum balance of $1,000 or set up a recurring payment. Otherwise it costs $4 per month. The Extra plan costs $9 per month and the Everything plan costs $19.

None of those plans charge overdraft fees. However, you can purchase add ons for KOHO, including Cover, which provides a cash advance of up to $250 for as low as $2 per month. Credit Building, which allows you to build your credit history, can cost as little as $5 per month depending on your plan.

Winner: Tie

While Simplii’s account is truly a no-fee account, those overdraft costs can add up. KOHO, on the other hand, offers a no-fee account but requires a hoop or two to jump through to qualify.

KOHO vs. Simplii current promotions

What the internet has to say on Simplii vs. KOHO

People aren’t so sure about these less traditional banks, and some turn to Reddit to get some important questions answered, like, as one Reddit user wondered, if KOHO was “legit”. 

"It's Legit. It's a prepaid Mastercard. You will need to top up before using it,” another user replied.  “Their customer service is good from my experience.”

In another Reddit thread, a user complained that their balance sometimes shows inaccuracies in the KOHO app.

“I’ve been with them for a few years and all was fine for a while,” the user wrote. “But recently, it seems like my balance is always inaccurate with no explanation or warning.”

As for Simplii Financial, one Reddit user wondered about the overall experience. It received some positive reviews from current customers.

“I was with PC Financial which migrated to Simplii years ago. I have a chequing account and can use CIBC ATMs. I had a GIC with them which went smoothly,” another user replied. “I've had to call customer service once and was quickly connected to a knowledgeable person who helped me. No issues at all for me.”

In another Reddit thread, the original poster claimed they were going to close their Simplii account following an issue with credit card payments.

“Their system tagged one of the several bill-pay transactions as fraudulent, and stopped all of my bill-pay transactions. Thanks for doing that, appreciate it, but they forgot to notify me by SMS, by email or by a letter to my home address that this happened,” the user wrote. “Now I am a couple of days late on all of my credit cards and Simplii can do nothing about that other than removing the block so I can make those payments again.”

How to sign up for Simplii Financial

You can sign up for Simplii Financial online. You’ll need to provide personal information, including where you live, your social insurance number and digital signature. The whole process shouldn’t take more than 10 minutes. 

How to sign up for KOHO

Similar to Simplii Financial, you can sign up for KOHO online. You’ll need to provide the same sort of information and documents and, again, shouldn’t take more than 10 minutes to complete. 

Justin da Rosa Freelance Writer

Justin da Rosa Freelance Writer

Justin is a writer and editor who has been covering personal finance for over 10 years. He's written for companies such as KOHO, Ratehub, BMO, Zoocasa, and Questrade, among others. Justin also created a course in Content Creation, which he taught at York University for four years. When not writing, Justin can be found at a live concert, on the golf course, riding a motorcycle, or sailing.

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