KOHO vs. Wealthsimple: Which One?

Both let Canadians spend, save and manage money from an app, but they focus on different needs.

KOHO is generally better if you want cash back, competitive savings interest and tools to build credit.

Wealthsimple is stronger if investing is a major priority and you want your chequing, savings and investments within the same platform.

What Is KOHO?

KOHO is a Canadian financial app built around a prepaid Mastercard.

Depending on your plan, KOHO offers:

• Up to 3.5% interest on your balance

• Up to 2% cash back on groceries, transportation, eating and drinking

• Up to 0.5% cash back on other purchases

• Free Interac e-Transfers

• Cash advance

• Credit Building

• Credit score access

• No foreign transaction fees on eligible plans

What Is Wealthsimple?

Wealthsimple is a Canadian financial platform with chequing, savings and investment accounts.

Its products include:

• No-fee chequing

• A prepaid Visa card

• A 2.5% dedicated savings account

• Self-directed investing

• Managed investing

• TFSAs

• RRSPs

• FHSAs

• Non-registered investment accounts

• Cryptocurrency investing

KOHO vs. Wealthsimple for Cash Back

KOHO has the advantage for everyday cash back.

KOHO currently offers:

• 1% on groceries, transportation, eating and drinking with Essential

• 1.5% with Extra

• 2% with Everything

• Up to 0.5% on other purchases depending on your plan

There are also additional cash back offers at select partner merchants.

KOHO vs. Wealthsimple for Savings

Both platforms pay interest on cash.

KOHO currently pays:

• Essential: 2%

• Extra: 2.5%

• Everything: 3.5%

There is no minimum balance required.

Wealthsimple's dedicated savings account currently pays 2.5% with no monthly fee or minimum balance. Its chequing account pays between 1.25% and 2.25% depending on your Wealthsimple client tier.

KOHO vs. Wealthsimple for Investing

Wealthsimple is the clear choice if investing is your main goal.

It offers self-directed investing in stocks and ETFs with $0 trading commissions. You can also choose managed portfolios.

Investment account options include:

• TFSA

• RRSP

• FHSA

• RESP

• Non-registered accounts

• Spousal RRSP

• LIRA

• RRIF

KOHO vs. Wealthsimple for Building Credit

KOHO Credit Builder is specifically designed to help establish credit history. Monthly payments are reported to the credit bureaus.

KOHO also provides credit score and report monitoring through eligible products and plans.

KOHO vs. Wealthsimple for Travel

Both can be useful while travelling.

Wealthsimple does not charge a foreign transaction fee on its prepaid Visa card. It also reimburses eligible ATM fees charged by ATM operators worldwide.

KOHO Extra and Everything also include no foreign transaction fees. Everything currently includes one international ATM fee reimbursement per month.

KOHO vs. Wealthsimple: Which One Should You Choose?

Choose KOHO if you care most about:

• Earning cash back on everyday purchases

• Earning up to 3.5% interest

• Building your credit history

• Accessing credit score tools

• Having access to a small cash advance

• Managing everyday spending

Choose Wealthsimple if you care most about:

• Investing in stocks and ETFs

• Using TFSA, RRSP and FHSA investment accounts

• Managed investing

• No-fee chequing

• A no-fee 2.5% savings account

• Frequent international ATM use

• Keeping banking and investments in one platform

Is KOHO or Wealthsimple Better?

Neither is better for everyone.

You can also use both.

For example, you could use KOHO for everyday spending and cash back while using Wealthsimple for your TFSA, RRSP or other investments. The right setup depends on what you actually need from each account.