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KOHO and Neobanc are not competitors. They solve completely different money problems, and comparing them head-to-head is a bit like comparing a chequing account to a rewards credit card - both useful, but for different reasons.
KOHO is a prepaid spending account with a Mastercard attached. You load money onto it, spend it on everyday purchases, and earn cashback (up to 2% on chosen categories) plus interest on your balance (up to 3.5% on the Everything plan). It's built for daily transactions - groceries, coffee, dining out. According to KOHO's own comparison page, their interest rates can be up to 125 times what big-bank savings accounts offer.
Neobanc is a payment layer. It lets you pay rent with your credit card and earn cashback on payments you previously couldn't earn rewards on - 1% on rent, 1% on bills, and 0.5% on mortgage payments. Stack those with your existing credit card rewards and you can earn up to 6% back on rent. Most Canadian renters and bill-payers benefit from using both tools together. There's no need to force a winner here.
KOHO is a Canadian fintech that offers a prepaid Mastercard - not a credit card, not a debit card tied to a bank account. You load funds before you spend. As Loans Canada explains, KOHO and similar challenger banks operate digitally without traditional physical branches, focusing instead on mobile-first banking experiences. Customer funds sit with Peoples Trust Company and carry CDIC protection up to $100,000.
KOHO offers three tiers, each with increasing cashback rates and features:
All plans include access to up to 6.5% extra cashback at partner merchants and a 30-day free trial. For Canadians working on their credit score, KOHO's Credit Building add-on reports payments to Equifax (KOHO doesn't publish a flat price - billing depends on your plan, with discounts on Extra and Everything). KOHO's own marketing cites meaningful average score gains for members within months of enrolling.
Neobanc is not a bank. It doesn't hold your money or issue you a card. Instead, it functions as a payment platform that routes your rent, bills, and mortgage payments through your existing Visa, Mastercard, or Amex credit card. This means you earn your credit card's own rewards on payments that landlords and utility companies normally force you to pay via cheque, direct debit, or e-Transfer.
Here's what Neobanc pays on top of whatever your credit card already earns:
There's no monthly subscription. The cost model runs on transaction fees: Interac e-Transfer payments are free, while credit card-funded payments carry a 1.50% fee (or 2.25% on the 2% cashback tier). For most users with a 2%+ rewards card, the math works in their favour - especially on rent, where the combined cashback can significantly outweigh the fee. Neobanc also offers optional rent reporting to credit bureaus and short-term rent microloans for Canadians who need a bridge.
The differences become clearest when you lay everything side by side. This table covers the major features Canadian consumers ask about when evaluating the neobanc vs KOHO question.
KOHO vs Neobanc: Feature Comparison
| Feature | KOHO | Neobanc |
|---|---|---|
| What it is | Prepaid Mastercard + spending/savings account | Payment platform (pay rent, bills, mortgage via credit card) |
| Regulated as | Fintech; funds held at Peoples Trust (CDIC-insured) | Money Services Business registered with Fintrac; funds held in CDIC-insured accounts |
| Founded | 2014 (HQ Toronto) | Canadian fintech |
| Card network accepted | Issues a Mastercard | Accepts Visa, Mastercard, Amex |
| Monthly plan fee | Essential $0 with qualifying deposits (fee otherwise), Extra $12/mo, Everything $22/mo ($14.75/mo billed annually) | No subscription; 1.75%–2.5% per credit-card-funded transaction |
| Cashback on everyday spending | 1% (Essential categories) to 2% + 0.5% everywhere (Everything); up to 6.5% at partner merchants | Not applicable (not a spending card) |
| Cashback on rent | Not supported | 1% standard (toward next rent); up to 6% when stacked with a rewards credit card |
| Cashback on bills | Not supported | 1% on utilities, telecom, subscriptions, credit card bills |
| Cashback on mortgage | Not supported | 0.5% on monthly mortgage payments |
| Interest on balance | Up to 3.5% (Everything plan) | 0% (platform doesn't hold balances) |
| FX fees | None on Everything plan | Not designed for FX spending |
| Credit building | Add-on (plan-dependent pricing), Equifax | Optional rent reporting to credit bureaus |
Notice the pattern: almost nowhere do these two products overlap. KOHO dominates the "spend and save" column. Neobanc dominates the "pay fixed expenses and earn" column. The only real overlap is credit building, where both offer reporting - KOHO reports spending activity to Equifax, while Neobanc reports rent payments to credit bureaus.
If you want rewards on groceries, gas, dining, and transit, KOHO is the clear choice. The prepaid Mastercard earns 1%-2% on purchases in your selected categories, plus up to 6.5% at partner retailers. Savvy New Canadians notes that KOHO pays up to 5% cashback at partner retailers and up to 3.5% interest on account balances - numbers that genuinely compete with premium rewards cards.
This is KOHO's standout feature. Your entire account balance earns interest automatically - 2% on Essential, 2.5% on Extra, and 3.5% on Everything. No separate savings account required. No transfer delays. Neobanc doesn't hold your money at all, so it simply doesn't offer this. For Canadians parking an emergency fund or short-term savings, KOHO's interest rates make it a compelling alternative to traditional banks.
The Everything plan eliminates foreign exchange fees entirely. That's a real saving of roughly 2.5% on every international purchase. Neobanc isn't designed for point-of-sale spending abroad, so this category belongs entirely to KOHO.
KOHO can't help you earn rewards on rent. Full stop. Your landlord doesn't accept prepaid Mastercard for monthly rent, and even if they did, KOHO's cashback categories don't include rent payments.
Neobanc fills this gap completely. Pay your landlord through the platform using your existing credit card and earn 1% cashback from Neobanc plus whatever your card issuer pays. A card earning 2% general cashback stacked with Neobanc's 1% gives you 3% back on every rent payment - money that was previously invisible to rewards programs. For someone paying $2,000/month in rent, that's $720/year in combined cashback.
Hydro, internet, insurance premiums, phone bills - these are expenses every Canadian pays. Neobanc's 1% cashback on bills and 0.5% on mortgage payments turn dead money into working money. Even small percentages add up fast when your mortgage payment alone might be $2,500/month. Consider that a 0.5% return on a $2,500 mortgage translates to $150/year you weren't earning before. Check out our guide on cashback mortgages vs lower rates for the full math.
Because Neobanc accepts Visa, Mastercard, and Amex, you can pair it with whichever rewards card maximizes your return. This stacking strategy doesn't exist with KOHO - the prepaid card is its own closed system.
Understanding the actual cost of each product matters more than headline cashback rates. Here's what you'll pay.
Monthly Cost Comparison
| Cost element | KOHO Essential | KOHO Everything | Neobanc |
|---|---|---|---|
| Monthly fee | $0 with qualifying deposits (fee applies otherwise) | $22/mo or $14.75/mo billed annually ($177/yr) | $0 subscription |
| Per-transaction fee | None | None | 1.75%–2.5% on credit-card-funded payments; free via Interac e-Transfer |
| Interest earned on balance | 2% APY | 3.5% APY on entire balance | None |
| Cashback on purchases | 1% on groceries, transport, dining | 2% on chosen categories + 0.5% on everything else; up to 6.5% at partner merchants | N/A (pays cashback on rent/bills/mortgage only) |
| Cashback on rent / bills / mortgage | Not available | Not available | 1% rent (up to 6% stacked) / 1% bills / 0.5% mortgage |
| Credit building | Add-on (plan-dependent) | Add-on (plan-dependent) | Optional rent reporting (opt-in) |
| FX fee on international purchases | ~2.5% | 0% (FX-free) | Not applicable |
Neobanc charges 1.75%-2.5% per credit card transaction. That sounds steep until you factor in what you earn back. If your credit card pays 2% on all purchases and Neobanc adds 1% cashback on rent, your combined 3% return exceeds the 2.5% fee. The net result: you earn 0.5% on money that previously earned nothing. On $2,000/month rent, that's $120/year in pure profit - from a payment you were already making. Our rewards vs rent fees guide walks through every scenario.
The Everything plan costs $177/year. If you maintain a $5,000 balance, you earn $175 in interest alone - nearly covering the subscription. Add 2% cashback on $1,500/month in eligible spending and you earn another $360/year. The plan pays for itself quickly if you keep a reasonable balance and use the card regularly.
Unlike KOHO's prepaid model, Neobanc reports your rent payments to credit bureaus — turning monthly expenses into a stronger credit score.
Start Reporting RentHere's the practical setup many Canadian renters and bill-payers are adopting:
This approach means nearly every dollar you spend or pay earns something. No single tool covers all four categories alone.
Both platforms offer credit-building features. KOHO's Credit Building add-on reports to Equifax (plan-dependent pricing). Neobanc offers rent reporting to credit bureaus as an opt-in feature. If credit building is a priority, you could use both - KOHO for general payment history and Neobanc for verified rent reporting. Having multiple positive tradelines strengthens your file faster.
One important update as of August 2026: KOHO's separate Rent Reporting feature (distinct from Credit Building) is being discontinued - no new subscriptions are accepted, and existing members can use it only until September 30, 2026, after which tradelines close in good standing, according to KOHO's help centre. Renters who relied on it for rent tradelines specifically will need a replacement such as Neobanc's free rent reporting.
The neobanc vs KOHO decision isn't really a decision at all for most Canadians. They cover different ground. Choosing one doesn't prevent you from using the other.
No. KOHO is a fintech company that partners with Peoples Trust Company, a federally regulated institution. Your deposits receive CDIC protection up to $100,000, but KOHO itself is not a bank. As Loans Canada clarifies, challenger banks like KOHO operate digitally without traditional branches.
No. Neobanc is a payment platform. It doesn't hold deposits or issue cards. It processes payments from your existing credit card to your landlord, utility provider, or mortgage lender and pays you cashback on those transactions. Visit the FAQ page for full details on how payments are processed.
KOHO issues a prepaid Mastercard, not a credit card. Neobanc's rent payment feature works with credit cards (Visa, Mastercard, Amex). A prepaid card won't generate the same rewards structure, and some transactions may not process the same way. For best results, use a rewards credit card through Neobanc and keep KOHO for daily spending.
Check Neobanc's official site for the most current provincial availability. Regulations around payment processing differ by province, and availability may change as the platform expands.
KOHO's Credit Building add-on reports to Equifax, with plan-dependent pricing. Neobanc offers optional rent reporting to credit bureaus. If you want maximum credit-building impact, using both gives you multiple positive reporting tradelines.
We've written a detailed breakdown in our Neobanc vs Chexy comparison. The short answer: cashback rates, accepted card networks, and fee structures vary between platforms. Neobanc's ability to accept Visa, Mastercard, and Amex gives it broader compatibility than most competitors.
Absolutely. Homeowners earn 0.5% cashback on mortgage payments and 1% on bills. If your combined monthly bills and mortgage exceed $3,000, that's $240+ per year in cashback you're currently leaving on the table. You can also earn instant cashback on digital gift cards.
The neobanc vs KOHO comparison is misleading if framed as a competition. KOHO handles daily spending and savings better than almost any fintech in Canada. Neobanc turns your largest fixed expenses - rent, bills, mortgage - into cashback-earning payments. One fills the gap the other can't reach.
If you spend $1,500/month on everyday purchases and pay $2,000/month in rent, using both tools could earn you well over $1,000/year in combined cashback and interest. That's real money from expenses you're paying regardless. The smartest move isn't picking a side - it's using both where they're strongest.
KOHO handles your everyday spending. Neobanc handles the big stuff — rent, bills, and mortgage cashback that actually adds up.
Try Neobanc FreeNo, KOHO is not a real bank. It is a Canadian fintech company that offers a prepaid Mastercard, not a traditional bank account. You load funds onto the card before spending. However, customer deposits are held with Peoples Trust Company and are protected by CDIC insurance up to $100,000, providing the same deposit protection you would get at a major Canadian bank.
Neobanc is available to Canadians across the country, including Quebec. Because Neobanc functions as a payment platform rather than a bank, it works wherever you can pay rent, bills, or mortgage payments using a Visa, Mastercard, or Amex credit card. Full eligibility details and supported payment types are outlined in the Neobanc FAQ and Help Centre.
Likely not in a way that benefits you. KOHO issues a prepaid Mastercard, not a traditional credit card, so it would not generate the credit card rewards that make Neobanc's fee math worthwhile. The entire advantage of Neobanc is stacking its cashback with rewards from a strong credit card. Pairing Neobanc with a 2% or higher rewards Visa, Mastercard, or Amex is the strategy that delivers real returns.
Neobanc charges a transaction fee of 1.75% to 2.5% when you fund a rent payment with a credit card. However, the net cost can actually turn into a net gain. If your credit card earns 2% rewards and Neobanc adds 1% cashback on rent, your combined 3% return exceeds even the highest fee. On $2,000 monthly rent, that math translates to roughly $120 per year in pure profit from a payment you were already making.
Yes, KOHO's credit building feature does work. It reports your payment activity to Equifax, and according to KOHO's published data, members using the Credit Building add-on have seen their credit scores increase by an average of 31 or more points in just four months. The feature costs $5 to $10 per month depending on your plan. Neobanc also offers credit building through rent reporting to credit bureaus, which is a useful complement for renters.
No, Neobanc and Neo Financial are completely different companies. Neo Financial is a Canadian challenger bank that offers credit cards, savings accounts, and a spending rewards program. Neobanc is a payment platform that lets you pay rent, bills, and mortgage through your existing credit card to earn cashback on expenses that traditionally earn no rewards. The similar names cause confusion, but their products serve entirely different purposes.
Yes, Neobanc lets you earn cashback on mortgage payments. The platform offers 0.5% cashback on monthly mortgage payments, which you can stack with your existing credit card rewards. While 0.5% sounds modest, it adds up on large recurring payments. A $2,500 monthly mortgage generates $150 per year in Neobanc cashback alone, turning a fixed expense that previously earned nothing into a rewards-generating payment.
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