KOHO Business Account Review 2025

Updated March 2025 · 8 min read

KOHO is one of Canada's leading fintech companies, best known for its no-fee personal banking product. As KOHO has grown, many Canadian entrepreneurs and sole proprietors have begun using KOHO as part of their financial toolkit. This review looks at how KOHO fits into the picture for business owners — what it does well, where it falls short, and how to think about it alongside a traditional business bank account.

What Is KOHO?

KOHO is a Canadian fintech that offers a free prepaid Visa card and spending account backed by Peoples Trust. Unlike traditional banks, KOHO has no monthly fees, no minimum balances, and no hidden charges. It earns revenue through interchange fees and optional premium features. KOHO is particularly popular among:

• Young Canadians building savings habits
• Budget-conscious consumers avoiding bank fees
• Freelancers and self-employed individuals managing personal cash flow
• People building or rebuilding credit through KOHO's credit building feature

KOHO Features Overview

No-Fee Spending Account

KOHO's free plan includes a prepaid Visa card with no monthly fee, no minimum balance, and no transaction fees. You load money onto the account and spend from it like a debit card. Works everywhere Visa is accepted in Canada.

Savings Features

KOHO offers a high-interest savings feature that earns interest on balances held in the account. Interest rates are competitive with online banks and significantly higher than what most Big Five banks pay on personal savings accounts.

Cash Back

KOHO's free plan includes 1% cash back on groceries and transportation. Premium plans offer higher cash back rates across more categories. Cash back is credited directly to your KOHO account balance.

Credit Building

KOHO's Credit Building feature (available as an add-on) reports your KOHO usage to Equifax, helping build your credit score over time. For new Canadians or individuals rebuilding credit, this is a genuinely useful tool.

Instant e-Transfers

KOHO supports Interac e-Transfers both incoming and outgoing, making it easy to move money between KOHO and other accounts or to pay individuals.

How Sole Proprietors and Freelancers Use KOHO

While KOHO isn't a dedicated business account, many self-employed Canadians integrate it effectively into their workflow:

Separating Owner Pay from Business Revenue

A common approach: maintain a traditional business chequing account at a Big Five bank for all business transactions, then pay yourself an owner's draw or salary into your personal KOHO account. KOHO then handles all personal spending — groceries, utilities, personal subscriptions — with no monthly fees.

Freelancer Cash Flow Management

Some freelancers use KOHO as their primary personal spending account because it eliminates the $15–$20/month personal banking fee that most Big Five banks charge. Given that a separate business account is still required for incorporated companies, KOHO can reduce the total cost of maintaining both accounts.

Emergency and Savings Reserves

Business owners sometimes use KOHO's high-interest savings feature to park personal emergency funds or short-term savings outside of their primary banking relationship, taking advantage of KOHO's competitive interest rate.

KOHO Limitations for Business Use

There are important limitations to understand before relying on KOHO for business banking:

• Not a business account: KOHO accounts are personal accounts. Using a personal account for business transactions creates accounting and tax complications.
• No cheque writing: KOHO does not support paper cheques. Many Canadian B2B transactions still require cheques.
• No business lending: KOHO does not offer business lines of credit, term loans, or commercial mortgages.
• No payroll processing: KOHO cannot be used as a payroll disbursement account in the way that business accounts support direct deposit payroll.
• Lower Interac e-Transfer limits: Personal accounts have lower e-Transfer limits than business accounts — important if you receive large client payments by e-Transfer.
• No multi-user access: You cannot give a bookkeeper or accountant separate login access to a KOHO account.
• Prepaid structure: KOHO is a prepaid product, not a traditional bank account. This means no overdraft protection and no ability to carry a negative balance.

KOHO Premium Plans

KOHO offers paid premium tiers with additional features:

• KOHO Essential: ~$4/month — higher cash back rates, no foreign transaction fees
• KOHO Extra: ~$9/month — enhanced cash back, price matching features
• KOHO Everything: ~$19/month — maximum cash back, all features included

Even at the highest tier, KOHO's monthly fee is well below what most Canadian banks charge for basic personal chequing accounts.

KOHO vs. Big Bank Business Accounts

This comparison only makes sense in specific contexts since KOHO doesn't offer a true business account:

• For incorporated businesses: KOHO cannot replace a business bank account. You need a dedicated business account at an institution that offers them.
• For sole proprietors: You could technically use KOHO for business transactions (it's legally permitted since sole proprietors and their businesses are not separate legal entities), but this creates bookkeeping headaches and isn't recommended.
• For personal banking alongside a business account: KOHO is excellent. Save $15–$20/month on personal banking fees while your business account handles all business transactions.

Is KOHO CDIC Insured?

KOHO account balances are held at Peoples Trust Company and Peoples Bank of Canada, both of which are CDIC member institutions. Deposits are eligible for CDIC deposit insurance up to $100,000 per depositor per insured category. This provides meaningful protection compared to some foreign fintech products available in Canada.

The Bottom Line on KOHO for Business Owners

KOHO is not a business banking solution — it's a personal banking product that business owners can use smartly to eliminate personal banking fees. The ideal setup for most Canadian small business owners is:

1. A traditional business chequing account at a Big Five bank or credit union for all business transactions
2. KOHO (free plan) for personal day-to-day spending — eliminating personal banking fees entirely

This combination gives you the full capability of a real business account while keeping your personal banking costs at zero.