KOHO and Wealthsimple: Different Tools for Different Jobs
KOHO and Wealthsimple are both popular Canadian fintech companies, but they serve fundamentally different purposes. KOHO is primarily a spending and savings platform that replaces or supplements your bank account. Wealthsimple is primarily an investing platform that also offers a cash account and tax filing.
Comparing them directly is like comparing a hammer to a screwdriver -- both are useful tools, but they solve different problems. That said, there is meaningful overlap in their cash and savings features, which is where most of the comparison debate centers. Let us break down each category to help you decide which platform deserves your money.
Interest Rates: KOHO Wins
| Feature | KOHO | Wealthsimple |
|---|---|---|
| Top savings rate | Up to 5% | Up to 3.5% |
| Free plan rate | 0.50% | 1.00% |
| Premium rate | 5% (Everything, $15/mo) | 3.5% (Premium, $3k min) |
| Interest on spending balance | Yes | No |
KOHO's maximum interest rate of 5% on the Everything plan decisively beats Wealthsimple Cash's rate. More importantly, KOHO pays interest on your entire balance including money you use for spending, while Wealthsimple Cash only pays interest on dedicated savings. For Canadians focused on maximizing savings returns, KOHO is the clear winner.
Wealthsimple's advantage is that their Premium rate requires maintaining a minimum balance rather than paying a monthly fee, which some users may prefer. However, in terms of raw earning potential, KOHO delivers more. For a detailed breakdown of all KOHO plans, see our full KOHO review.
Cashback: KOHO Wins
KOHO offers meaningful cashback on every purchase, ranging from 1% at partners on the free plan to 5% at partners and 2% everywhere else on the Everything plan. Wealthsimple Cash offers limited cashback primarily through specific promotions and their premium tiers.
For a Canadian spending $2,000 per month on their card, KOHO's Everything plan could generate $40 to $100+ per month in cashback alone. Wealthsimple's cashback on the same spending would be significantly less. If earning money back on purchases is important to you, KOHO is not just better -- it is in a different league.
Investing: Wealthsimple Wins
This is where Wealthsimple has a massive and uncontested advantage. Wealthsimple Trade offers commission-free stock, ETF, and cryptocurrency trading. Wealthsimple Invest provides automated portfolio management (robo-advisory). Wealthsimple also offers TFSA, RRSP, and RESP investment accounts.
KOHO does not offer any investment products. If you want to invest in stocks, bonds, ETFs, or crypto, you need Wealthsimple or a similar brokerage. There is no overlap here -- KOHO is for spending and saving, Wealthsimple is for investing.
Everyday Banking: KOHO Wins
As a daily banking tool, KOHO is more capable than Wealthsimple Cash. KOHO offers a Mastercard for purchases, instant transaction notifications, spending categorization, roundup savings, bill payments, and Interac e-Transfer support. The app is designed around daily financial management.
Wealthsimple Cash offers basic spending features with their card, but the platform is clearly designed with investing as the primary use case. The cash account feels like an add-on rather than the core product. For everyday banking needs, KOHO provides a more polished and feature-rich experience.
Credit Building: KOHO Wins
KOHO offers a built-in credit building tool that reports monthly installments to Equifax and TransUnion. This feature is included on the Everything plan or available as an add-on for lower tiers. It allows Canadians to build credit history using money they already have in their account, with zero risk of missed payments.
Wealthsimple does not offer any credit building features. For newcomers to Canada, young adults, or anyone looking to build or rebuild their credit, KOHO has a significant advantage in this category.
Fees: Both Are Competitive
| Fee Type | KOHO | Wealthsimple |
|---|---|---|
| Free plan | Yes ($0) | Yes ($0) |
| Premium cost | $15/mo (Everything) | $0 (balance-based) |
| Trading commissions | N/A | $0 |
| Account transfer fee | N/A | $0 (covered) |
| Foreign exchange fee | 1.5% | 1.5% (waived Premium) |
Both platforms offer generous free tiers. KOHO charges for premium features via monthly subscription, while Wealthsimple unlocks premium perks based on account balance. Neither charges hidden fees or engages in the kind of fee-stacking that traditional banks are known for.
Tax Filing: Wealthsimple Wins
Wealthsimple Tax is one of the most popular free tax filing tools in Canada. It offers a simple, guided process for filing Canadian income tax returns with no mandatory fee (pay-what-you-want model). This is a unique value-add that KOHO does not offer.
For Canadians who need to file taxes (which is everyone), Wealthsimple Tax is an excellent free tool regardless of whether you use their other products. Filing your taxes also ensures you receive government benefits like the GST/HST credit and Climate Action Incentive payments.
Who Should Use KOHO?
- Canadians who want the highest interest rate on savings (up to 5%)
- Anyone who wants automatic cashback on every purchase
- People looking for a free bank account alternative
- Newcomers or students who need a no-credit-check account
- Anyone wanting to build credit without risk
- Budget-conscious spenders who value real-time notifications and categorization
Who Should Use Wealthsimple?
- Canadians who want to invest in stocks, ETFs, or crypto
- Anyone looking for automated portfolio management (robo-advisor)
- People who need TFSA or RRSP investment accounts
- Canadians who want free tax filing
- Long-term investors building wealth through market exposure
Our Recommendation: Use Both
The best financial setup for most Canadians in 2026 combines KOHO for daily spending, saving, and cashback with Wealthsimple for investing and tax filing. These two platforms complement each other perfectly with almost no feature overlap.
Use KOHO as your primary spending account. Load your pay via direct deposit, earn 5% interest on your balance, collect cashback on every purchase, and build your credit. Then periodically transfer money you want to invest long-term into your Wealthsimple TFSA or RRSP where it can grow through market returns.
This two-platform approach gives you best-in-class savings rates, cashback, investing, and tax filing -- all for minimal cost. It is the most efficient financial stack available to Canadians today.
Bottom Line
KOHO is better for saving and spending. Wealthsimple is better for investing and taxes. You do not have to choose one -- using both is the smartest approach. Start with KOHO for the immediate benefits of high interest and cashback, then add Wealthsimple when you are ready to invest. Sign up for KOHO here with code 45ET55JSYA for a bonus.