KOHO Core Review – Try KOHO Free + Get a $40 Bonus

Free bank accounts in Canada almost always come with an asterisk. Waive the fee if you set up direct deposit. Waive the fee if you keep a minimum balance. Waive the fee if you jump through this hoop or that one. On August 25, 2026, KOHO threw that playbook out with the launch of KOHO Core, a chequing-and-savings hybrid account that’s free, full stop, with no direct deposit requirement, no minimum balance, and no trial period that quietly expires into a paid plan.

If you’ve been eyeing KOHO’s prepaid Mastercard ecosystem but didn’t want to commit to a paid tier or reroute your paycheque to qualify for the free one, KOHO Core is worth a close look. Here’s what’s actually in the box.

What you get with KOHO Core

KOHO Core rolls together everyday banking, a bit of cash back, and a genuinely useful credit-building tool, all under a $0/month price tag with no conditions attached.

2% interest on your entire balance. Every dollar in the account earns 2% annual interest, calculated daily and paid monthly, with no cap and no minimum balance needed to activate it. There’s no tiered structure where only the first few thousand dollars earn the good rate; the full balance qualifies. Interest rates are variable and can change at any time, which is standard across the industry, but as a baseline for an account with zero fees, 2% is competitive. On an average balance of $3,000 sitting in the account year-round, that works out to roughly $60 in interest, not enough to replace a dedicated high-interest savings account but a nice bonus on money you’re using for everyday spending anyway.

1% cash back on the categories that matter most. Groceries, transportation, and eating and drinking out all earn 1% back automatically, redeemable with no minimum threshold. KOHO also runs partner promotions inside the app that bump cash back even higher (up to 6.5%) at selected merchants, so it’s worth checking the offers tab before a big grocery run. A household spending around $800 a month across these categories would pick up close to $100 a year in cash back, on top of the interest earned on the balance itself.

Secured Credit Building, included permanently and for free. This is the feature that sets KOHO Core apart from most “no-fee” chequing accounts on the market, and it’s arguably the headline benefit. Normally, KOHO’s credit-building tool is a paid subscription; Extra and Everything plan holders get 30% and 50% discounts on it, respectively, but Core users get the secured version at no cost, indefinitely. Here’s how it works: you put down a refundable security deposit (starting at $30), which becomes your credit limit. Your on-time payments get reported monthly to Equifax, building a credit history over time. When you’re done, the deposit comes back to you; it’s not a fee, just money set aside while the tool is active. KOHO reports that users of its credit-building tools see an average credit score increase of 74 points, which makes this a genuinely compelling option for anyone building credit from scratch, including newcomers to Canada, students, or people recovering from a thin or damaged credit file.

Free credit score monitoring. You get one free Equifax credit score check per month directly in the app, with no hard inquiry that would ding your score just for checking.

A cash advance safety net. Through KOHO’s Cover feature, Core account holders can access a cash advance of up to $500 at 0% interest, a small but useful cushion for timing gaps between paycheques, without resorting to a high-interest payday product.

Everyday banking essentials, unlimited. Unlimited transactions, no minimum balance requirement anywhere in the account, and free real-time Interac e-Transfers (capped at $5,000 per day). You also get an instant virtual card the moment you sign up, usable immediately for online purchases or mobile wallets like Apple Pay, Samsung Pay, or Google Pay, while your physical card, available in a choice of colours, makes its way to you in the mail.

International money transfers. KOHO’s transfer feature sends money to more than 190 countries with competitive exchange rates, no hidden fees, and delivery in as little as 30 minutes in many cases.

Automated savings tools. Goals let you save toward specific targets, RoundUps automatically rounds up every purchase and stashes the spare change, and Vault lets you lock away savings you don’t want mixed in with your everyday spendable balance. Custom budgeting and spending-habit tracking round out the toolkit.

And because it’s a CDIC member, your KOHO Core funds are eligible for CDIC insurance, a meaningful reassurance for a fintech-style digital account.

Where KOHO Core fits among the KOHO plans

KOHO now runs three tiers side by side: Core, Extra, and Everything. Core offers 2% interest and 1% cash back for free.

Extra ($12/month) and Everything ($14.75/month) step up the interest rate to 2.5% and 3.5% respectively, boost cash back to 1.5% and 2%, discount credit building further, and, notably, eliminate foreign transaction fees, which still apply on Core. If you cancel a paid plan, your account automatically reverts to Core rather than closing outright, effectively making Core the new baseline tier across KOHO’s whole lineup.

Check out our full KOHO review to learn more.

Who should consider KOHO Core

KOHO Core is an easy recommendation for anyone whose paycheque lands at another bank and who doesn’t want to disrupt that setup just to dodge monthly fees. It’s equally well suited to freelancers, contractors, students, or anyone with variable income who can’t reliably hit a direct-deposit or minimum-balance threshold every month. The built-in credit building makes it a particularly strong option for people establishing credit for the first time.

Where it falls short: frequent travellers will still want Extra or Everything to avoid foreign transaction fees, and anyone parking a large lump sum purely to earn interest will find dedicated high-interest savings accounts elsewhere that beat KOHO’s 2% rate.

Getting started with KOHO Core

Opening a KOHO Core account takes about five minutes through the KOHO app or website, requires no credit check, and needs only government-issued ID plus basic contact information.

Sign up through our link HERE and get an exclusive $40 welcome bonus on top of everything above, on us.

For a no-fee account with genuinely no strings attached, free credit building, and interest on every dollar, KOHO Core is one of the more interesting releases in the Canadian digital banking space this year.