KOHO Core Review: KOHO’s New Free Account
Loading article…
A genuinely free account with no strings attached is rare in the Canadian banking market. Here is our take on KOHO Core (KOHO Clé in French), the newest account from KOHO, the Canadian digital bank already known for its reloadable prepaid Mastercard: launched on August 25, 2026, it stands out from the rest of the lineup by being free with no direct deposit requirement and no minimum balance, a real advantage over comparable offers that almost always attach a condition to their free tier.
That is a concrete difference from the Essential plan, which stays free only if you set up a recurring direct deposit or deposit at least $1,000 per month. Here is what KOHO Core includes, what it actually earns you, and how it compares to KOHO’s three other plans.
A free account with no eligibility conditions
Until now, KOHO’s cheapest plan was Essential, advertised at $0 per month. That free price came with a catch: you had to set up a recurring direct deposit, or bring at least $1,000 into the account each month through deposits, Interac e-Transfers or transfers from another institution.
KOHO Core removes that catch. The account is permanently free, with no trial period, no commitment and no minimum amount to move through it. If your paycheque is deposited elsewhere, or your income is irregular, that is the difference between an account that is genuinely free and one that becomes paid in certain months.
No credit check is required to open the account, and setup takes about five minutes in the app. You need to be a Canadian resident, be 18 years old (19 in some provinces), and provide government-issued ID.
Interest on your balance and cash back
KOHO Core pays 2% interest on every dollar deposited, with no cap and no minimum balance, once you activate interest in the app. Interest is calculated daily and paid monthly. The rate is annual and can change without notice, as is standard for this type of account.
Concretely, an average balance of $3,000 held throughout the year earns about $60 in interest. That is modest compared to dedicated savings accounts, but this is an everyday account: your money stays available for daily spending while it works.
On the spending side, the account earns 1% cash back on three categories of eligible purchases: groceries, transit, and food and drink. Cash back can be redeemed instantly, with no minimum threshold, and partner offers in the app add extra cash back at select merchants. A household spending $800 per month in these categories gets back about $96 per year.
If your spending is concentrated elsewhere, a cash back credit card will be more rewarding. Our page on the best high-interest savings accounts in Canada also lets you compare rates from one KOHO plan to another.
Credit building included at no cost
This is the most unusual part of the offer. At KOHO, regular Credit Building is a paid monthly subscription, on which the Extra and Everything plans offer 30% and 50% discounts. With KOHO Core, the secured version of this tool is included at no cost, with no trial period and no time limit. The regular product remains available as a paid add-on in the app for those who want to go further.
The mechanics remain those of a secured product: you put down a refundable security deposit, starting at $30, which becomes your credit limit. Your monthly payments are then reported to Equifax and build your credit history. The deposit comes back to you when you close the product.
You also get one free Equifax credit score check per month in the app, with no hard credit check that would affect your file.
Interac e-Transfers and instant virtual card
KOHO Core includes free real-time outgoing Interac e-Transfers, capped at $5,000 per day, as well as low-fee international money transfers. You receive a virtual card as soon as you open the account, before the physical card arrives in the mail, so you can pay online or with a mobile wallet right away.
Comparing KOHO’s four plans
KOHO now offers four options. Here is how they stack up against each other.
| Criteria | KOHO Core | Essential | Extra | Everything |
|---|---|---|---|---|
| Monthly fee | $0, no conditions | $0 with direct deposit or $1,000 deposited monthly | $12 | $14.75 |
| Interest rate | 2% | 2% | 2.5% | 3.5% |
| Cash back | 1% groceries, transit, food and drink | 1% | 1.5% | 2% |
| Credit building | Included at no cost | Paid add-on | Paid add-on, 30% off | Paid add-on, 50% off |
| Foreign transaction fees | Apply | Apply | None | None |
One useful detail: if you cancel an Extra or Everything plan, your account automatically reverts to KOHO Core at the end of the billing cycle, keeping your perks until then. KOHO Core is effectively the new base tier of the lineup. Terms apply to each of these plans, and they can change without notice. Always check the current conditions on KOHO’s website before choosing.
Who KOHO Core is for
KOHO Core is aimed first at people whose paycheque goes to another institution, and who do not want to move their direct deposit just to avoid fees. It is also a coherent option for variable income: self-employment, contract work, studies. The account never becomes paid.
The included credit building also makes it one of the most interesting options for building a first credit file without paying monthly fees. For newcomers to Canada, who start without a local credit history, our article on KOHO for newcomers covers this approach in detail.
On the other hand, if you travel often, the Extra and Everything plans remain more relevant: they remove foreign transaction fees, which KOHO Core does not. And if your goal is to grow a lump sum, the 2% rate will be beaten by several dedicated savings accounts.
KOHO’s other plans
KOHO Core joins three paid plans already offered by KOHO. Here is a look at each one, to compare before you choose.
- Annual fee
- $48
- Our valuationMilesopedia first-year estimate First-year valueWelcome bonus$20Total$20Rewards on your spending are not included. The calculator that adds them from your own profile is on the card's page.
- $20
- Welcome offerAfter $1 in 1 month
- $20 cash back
Apply Now
on KOHO's website
- Annual fee
- $144
- Welcome offerAfter $1 in 1 month
- 3 months free + $20 cash back
Apply Now
on KOHO's website
How to open a KOHO Core account
Opening an account is done entirely online, in about five minutes, through the mobile app or KOHO’s website. No credit check is performed. You need government-issued ID, a phone number and an email address. One important note: KOHO is rolling the account out gradually, starting with a small group of users, so KOHO Core may not be available to you yet when you apply.
To open your KOHO Core account, click here.
To get the best banking and cash back offers every week, subscribe to our newsletter.
KOHO Core: frequently asked questions
Are KOHO Core and KOHO Clé the same product?
Do you need a direct deposit to keep KOHO Core free?
No. KOHO Core is free with no direct deposit and no minimum balance. That is what sets it apart from the Essential plan, which stays at $0 only if you set up a recurring direct deposit or deposit at least $1,000 per month.
Is credit building really free?
Yes, it is included with no monthly fee, no trial period and no time limit. You do however need to set aside a refundable security deposit, starting at $30, which becomes your credit limit and is returned to you when you close the product.
How much interest does KOHO Core actually earn?
The rate is 2% per year on every dollar, with no cap, calculated daily and paid monthly. On an average balance of $3,000, that is about $60 per year. The rate can change without notice.
Does KOHO Core replace the Essential plan?
Is KOHO Core a good fit for travel?
Not particularly. Foreign transaction fees apply, unlike the Extra and Everything plans which remove them. For frequent purchases in foreign currencies, those two paid plans remain the better fit.
