Overall Verdict — Which Should You Choose?
Choose Neo Financial if: you're maximizing interest earned and shop at Neo partner retailers (Canadian Tire, etc.) where you can earn 5% cashback. Neo's 4.0% rate earns $100/year more on $100 than KOHO.
Choose KOHO if: you want credit building without a deposit, a guaranteed $100 sign-up bonus, a more established track record, or lower FX fees via the Everything plan. KOHO also wins on simplicity for most everyday Canadians.
Best strategy: Use KOHO (claim $100 bonus first, build credit) → evaluate Neo after 6+ months. Or use both: KOHO for credit building and everyday cashback, Neo for your savings/high-balance account at 4.0%.
KOHO vs Neo — Annual Value Calculator
KOHO vs Neo Financial Side-by-Side
| Feature | KOHO | Neo Financial |
|---|---|---|
| Monthly fee | $0 | $0 |
| Savings interest | 3.0% | 4.0% |
| Cashback (base) | 0.5% | Up to 5% (partner stores) |
| Credit building | No deposit, $10/mo | Secured card ($50+ deposit) |
| Sign-up bonus | $100 (code: 45ET55JSYA) | Varies |
| FX fees | 1.5% (0% on Everything plan) | ~1.5% |
| Years operating | 10+ (since 2014) | 5+ (since 2019) |
| Users | 1M+ | 1M+ |
| Deposit insurance | CDIC (Peoples Bank) | CDIC (via partners) |
| Branches | Digital only | Digital only |
KOHO vs Neo Financial FAQ
Is Neo Financial better than KOHO?
Neo has a higher interest rate (4.0% vs 3.0%) and offers up to 5% cashback at partner stores. KOHO wins on credit building (no deposit required), sign-up bonus ($100 guaranteed), longer track record and slightly better FX rates. The better choice depends on your specific needs.
Is Neo Financial safe and CDIC insured?
Yes. Neo Financial deposits are CDIC-insured up to $100,000 per category through its banking partners. Neo is a legitimate, licensed Canadian fintech company regulated by FINTRAC. It's backed by significant investors and has 1M+ users.
What is Neo Financial's interest rate?
Neo Financial currently pays 4.0% APY on its Neo Money savings account — the highest rate among the major free Canadian digital banks. This compares to KOHO at 3.0% and EQ Bank at 3.75%. Rates are subject to change.
Can I use both KOHO and Neo?
Yes — many Canadians use both. A common setup: use KOHO as your primary spending account (earn the $100 bonus, build credit) and open a Neo Money account for your savings balance to take advantage of the 4.0% rate. Both are free with no monthly fees.
Does Neo Financial offer credit building?
Neo offers a secured Mastercard that helps build credit, but it requires a deposit of $50 or more. KOHO's Credit Building product ($10/month) requires no deposit at all and reports to Equifax — making it more accessible for newcomers or those with no credit history.