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Add Koho's Easy Plan to HISA chart
November 26, 2023
3:00 pm
Doug
British Columbia, Canada
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December 12, 2009
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While Koho Financial, Inc., is not a bank, is privately owned, and has limited customer support options outside of in-app support during and escalated e-mail complaint support, it does nonetheless offer CDIC insurance on balances linked to the prepaid credit card product, currently paying 3% per annum on its no-fee Easy Plan. It includes fee-free Interac e-Transfers and pre-authorized debits and early direct deposits. You can also fund your account via the aforementioned e-Transfer or via linking your external bank accounts.

While CDIC insurance is offered on prepaid credit cards as of 2022, Koho Financial, Inc., is not a bank, but took over issuance and BIN sponsorship of its flagship Koho card from Peoples Trust Company. Nevertheless, it has maintained a back-office relationship with Peoples Trust Company whereby Peoples Trust Company provides the CDIC insurance and custody of customer funds. It's unclear if the PT account number Koho provides you is a shared account number, or a unique account number assigned to every Koho customer. If the former, then it's likely PT provides the CDIC in trust for deposit insurance through a pooled registered cash account (like Wealthsimple Cash Card). If it's the latter, then it's likely that PT provides the in trust for CDIC deposit insurance directly in the name of each named beneficiary.

Either way, though, Koho bears similarity to Wealthsimple Cash in one, unique way, in that, regardless, it still owns the customer relationship and controls its customers' access to the back-office bank, and settles transactions to/from that back-office account at end of business day.

As such, it meets the requirements for inclusion in the HISA chart, but only the Easy Plan as the other plans charge annual fees and pay you 5% per annum.

One other benefit is a full 1% cash back on purchases made with the card, versus 0.5% with EQ Bank Card.

Cheers,
Doug

November 26, 2023
6:00 pm
everhopeful
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I usually try to avoid fees like the plague, but in this case, if you keep more than $2400 in the account, the $4/mo Essential fee pays for itself.

November 26, 2023
8:54 pm
Peter
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Interesting that their plans have changed again. In September, you needed to pay $19/month to get 4.50% interest.

Correction to Doug's comment about cash back on purchases on the free plan: it's 1% back on groceries and transportation (which is distinct from travel) only, and 0% back on other purchases.

The base 3.00% rate on your savings balance is still relatively competitive, and $4/month for a 5.00% interest rate is notable.

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