KOHO vs Tangerine 2025: Which Is Better?
Updated March 2025. KOHO and Tangerine are both popular no-fee banking options for Canadians. KOHO is a fintech focused on spending and cash back; Tangerine (owned by Scotiabank) is a digital bank with competitive savings rates. Here's a detailed comparison to help you decide.
Our Pick: KOHO
KOHO is Canada's top no-fee bank for everyday spending: zero monthly charges, up to 2% cash back on groceries and gas, and instant spending notifications. Use code 45ET55JSYA for a sign-up bonus.
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KOHO vs Tangerine: Quick Comparison
| Feature | KOHO | Tangerine |
|---|
| Monthly Fee | $0 | $0 |
| Cash Back on Groceries | Up to 2% | 2% (on 2 categories) |
| Cash Back on Gas | Up to 2% | 2% (if selected) |
| Savings Interest | ~0.5% | ~2.75–6% (promo) |
| Credit Building | Yes (add-on) | No |
| Instant Notifications | Yes | Limited |
| Owned By | Koho Financial | Scotiabank |
| CDIC Protected | Yes (via partners) | Yes (directly) |
Cash Back: KOHO vs Tangerine
Both KOHO and Tangerine offer cash back on everyday spending, but with different structures:
- KOHO: Earns 1% cash back on groceries and transport by default. Upgrade to KOHO Extra for 2% on groceries, dining, and transport. Cash back is credited automatically every month with no caps.
- Tangerine: 2% cash back in up to 3 categories of your choice (from 10 options including groceries, gas, restaurants, entertainment). 0.5% on all other purchases. Excellent if you optimize your category selections.
Verdict on cash back: KOHO wins for simplicity and real-time tracking. Tangerine wins for flexibility in choosing your bonus categories — but you have to actively manage it.
Savings Rates: Tangerine Wins
This is where Tangerine has a clear advantage:
| Product | KOHO | Tangerine |
|---|
| Savings Account | ~0.5% | ~2.75–6% (promotional) |
| TFSA | N/A | ~2.75%+ |
| GICs | No | Yes |
| Promotional Welcome Rate | No | Up to 6% (new clients) |
If you want to earn meaningful interest on your savings, Tangerine is the better choice. KOHO's savings rate is modest and the product is not designed as a savings-first platform.
KOHO Wins on Spending Features
KOHO is purpose-built for everyday spending and financial tracking:
- Instant notifications for every transaction — you know where your money is going in real time
- Spending analytics and categorization to help you budget
- Vaults — save money toward specific goals within the app
- RoundUp — automatically rounds up purchases and saves the difference
- Credit building — KOHO's Credit Building add-on helps Canadians with no credit or poor credit build a credit score
- Earned Wage Access — get paid before payday on eligible purchases
Credit Building: KOHO's Unique Feature
KOHO offers a Credit Building add-on ($7/month or included with KOHO Extra) that reports to Equifax and helps establish or improve your credit score. This is especially valuable for:
- New Canadians without a Canadian credit history
- Young Canadians just starting to build credit
- Anyone rebuilding credit after financial challenges
Tangerine does not offer a similar credit building feature.
Who Should Choose KOHO?
- Canadians who want to track and control daily spending
- Those building or rebuilding credit
- People who want instant transaction notifications
- Anyone who wants straightforward cash back without category management
Who Should Choose Tangerine?
- Canadians who want to maximize savings interest
- Those who want a TFSA or GICs at a no-fee bank
- Customers who want to choose their own cash back categories
- People who prefer a bank backed directly by a Big 5 institution (Scotiabank)
Our Pick: KOHO — KOHO wins for everyday spending, cash back simplicity, budgeting tools, and credit building. Tangerine is the better choice if savings rates and GICs are your priority. Many Canadians use KOHO for daily spending and Tangerine (or EQ Bank) for savings.
Information current as of March 2025. Promotional rates at Tangerine change frequently. Verify current offers directly.