Digital BankingKoho vs Neo Financial

Koho vs Neo Financial

Which Challenger Bank Wins for Everyday Banking? · 2026 Edition

Koho logo

Koho

Build credit and savings with a fee-free prepaid Mastercard

4.3 / 5.0

3.50%

HISA rate

CDIC Insured
VS
Neo Financial logo

Neo Financial

High-interest savings and customizable cashback rewards

4.5 / 5.0

3.00%

HISA rate

CDIC Insured

Rate Comparison

The numbers that matter most for your savings

Savings and GIC rates are the most concrete differentiator between digital banks. These are the advertised rates as of our last review. Always confirm on each platform before opening an account.

High-Interest Savings Rate

Koho

Koho

3.50%

Neo Financial

3.00%

Koho offers a 0.50 percentage point higher savings rate at its top tier, which adds up meaningfully on larger balances over time.

Base Savings Rate (No Paid Plan)

Neo Financial

Koho

0.50%

Neo Financial

2.25%

Without any paid plan or premium tier, Neo Financial starts you at a higher base rate. This is the rate most new users will actually earn.

Key Differences

Beyond the rates: the features that separate these platforms

Rates alone don't tell the full story. These are the most meaningful differences between Koho and Neo Financial that are likely to influence your decision.

Built-In Investing

Neo Financial

Neo Financial lets you invest directly within the same app alongside your banking. Koho is focused on banking and payments, so you would need a separate brokerage to invest.

Product Breadth

Neo Financial

Neo Financial offers 4 of 6 core product categories vs 2 for Koho. A wider product lineup means fewer reasons to keep accounts elsewhere.

Credit Card

Neo Financial

Neo Financial offers its own credit card with cashback or rewards tied to its ecosystem, giving it a more complete product lineup. Koho is a banking-only platform on the credit side.

Monthly Fee

Even

Koho: $0. Neo Financial: $0. Both offer free base accounts, so monthly fees won't be the deciding factor.

Premium Plans

Even

Koho: $12/mo (Essential), $14.75/mo (Everything) for Higher savings rate, more cashback, balance protection. Neo Financial: $7.99/mo (Essential), $12.99/mo (Ultra) for Higher savings rate, credit monitoring, travel insurance. Both offer paid tiers; the right one depends on which perks you will actually use.

Deposit Insurance & Safety

How your money is protected at each platform

Deposit insurance is one of the most important factors when choosing a digital bank. Here's how Koho and Neo Financial stack up on protecting your deposits.

Koho logo
Koho
CDIC Member

Coverage Limit

$100,000 per deposit category

Details

Insured through Peoples Trust Company, a CDIC member

Neo Financial logo
Neo Financial
CDIC Member

Coverage Limit

$100,000 per category

Details

CDIC protects bank deposits up to $100,000 per insured category through National Bank of Canada, a CDIC member. CIPF protection is available through Neo's registered investing partner, covering eligible investment accounts up to $1,000,000 per account category.

Product & Feature Comparison

What each platform actually offers

2/6 products · Koho4/6 products · Neo Financial
Feature
Koho
Neo Financial
Chequing Account
Savings Account
GICs
Credit Carddiffers
Investingdiffers
Business Accounts
Mobile App
Interac e-Transfer
Monthly Fee
$0
$0

Fees & Premium Plans

What you pay and what you get for it

Koho logo
Koho

Monthly Fee

$0

Paid Plans

$12/mo (Essential), $14.75/mo (Everything)

Premium Benefits

Higher savings rate, more cashback, balance protection

Neo Financial logo
Neo Financial

Monthly Fee

$0

Paid Plans

$7.99/mo (Essential), $12.99/mo (Ultra)

Premium Benefits

Higher savings rate, credit monitoring, travel insurance

Common Ground

Features you get regardless of which platform you choose

  • Chequing account for everyday spending
  • High-interest savings account
  • Dedicated mobile app for iOS and Android
  • Interac e-Transfer for sending and receiving money
  • CDIC deposit insurance protection
  • Open to all Canadians with no membership restrictions

Pros & Cons

Koho logo
Koho

Strengths

  • Credit building without a hard credit inquiry
  • Interest-free cash advances up to $250
  • Cashback on groceries, dining, and transit on all plans
  • No monthly fee on the base plan
  • ATM access
  • Real-time spending notifications and round-up savings
  • Savings interest earned from the first dollar

Limitations

  • Highest savings rate of 3.5% requires the paid Everything plan
  • No investing products or registered accounts like TFSAs
  • Prepaid structure means no traditional overdraft
  • Line of credit interest rates are above market average
Neo Financial logo
Neo Financial

Strengths

  • Savings rate starts at 2.25% on the free plan
  • Flexible credit card with customizable cashback categories
  • CDIC and CIPF protection for deposits and eligible investment accounts
  • No minimum balance on savings account
  • ATM access
  • Clean, straightforward mobile app
  • Apply for a credit card with no existing credit history required

Limitations

  • Registered investing options are limited to managed portfolios
  • No self-directed trading or access to individual stocks
  • Business accounts not available
  • No physical branch locations

Who Should Choose Which?

Koho logo

Choose Koho if:

  1. 1
    You want the highest possible savings rate (3.50% vs 3.00%)
  2. 2
    People building or rebuilding a credit profile who also want a fee-free spending card and automatic savings habits
Neo Financial logo

Choose Neo Financial if:

  1. 1
    You want banking and investing in one app
  2. 2
    You want a credit card integrated with your banking
  3. 3
    Fee-conscious Canadians who want a strong savings rate paired with a rewarding, flexible credit card

Common Questions

What Canadians ask most when comparing these platforms

Is my money safe at Koho and Neo Financial?

Koho: Insured through Peoples Trust Company, a CDIC member Neo Financial: CDIC protects bank deposits up to $100,000 per insured category through National Bank of Canada, a CDIC member. CIPF protection is available through Neo's registered investing partner, covering eligible investment accounts up to $1,000,000 per account category.

Which has a higher savings rate: Koho or Neo Financial?

Koho currently advertises the higher top-tier savings rate (3.50% vs 3.00%). Note that the highest rates may require a premium tier or meeting a minimum balance. Rates change regularly, so always verify on each platform's website before committing.

Do Koho and Neo Financial charge monthly fees?

Koho: $0. Neo Financial: $0. Koho also offers: $12/mo (Essential), $14.75/mo (Everything). Neo Financial also offers: $7.99/mo (Essential), $12.99/mo (Ultra).

Can I invest through Koho or Neo Financial?

Neo Financial includes investing features within the same app. Koho focuses purely on banking and payments, so you would need a separate brokerage to invest.

Does Koho or Neo Financial offer a credit card?

Koho is a banking-only platform on the credit side. Neo Financial offers its own credit card.

Who is Koho best for vs Neo Financial?

Koho is best for: People building or rebuilding a credit profile who also want a fee-free spending card and automatic savings habits Neo Financial is best for: Fee-conscious Canadians who want a strong savings rate paired with a rewarding, flexible credit card

Overall Verdict

Koho logo
Koho

4.3 / 5.0

Neo Financial logo
Neo Financial

4.5 / 5.0

Koho and Neo Financial are both strong digital banking options for Canadians, but they serve different needs. Neo Financial stands out with integrated investing alongside banking, making it a more comprehensive financial hub.

On savings rates, Koho currently offers the higher top-tier rate (3.50% vs 3.00%), though Neo Financial may win on base rates depending on your balance and plan. Rates change regularly, so verify current figures before committing.

On deposit insurance, both platforms carry CDIC coverage, but the limits differ: Koho provides $100,000 per deposit category in coverage while Neo Financial provides $100,000 per category. For anyone holding larger balances, that gap is worth noting.

The right choice depends on what you value most: review the "Who Should Choose Which?" section above to match your priorities to the right platform.