Koho vs RBC : Which is Better?

KOHO vs RBC: Which Is Better?

This article shows the differences between KOHO and RBC. We compare the real rates for cashback, interest, fees, and overdraft fees to help you decide which one is better for you.

KOHO Overview

KOHO is a Canadian money app with a prepaid Mastercard. It is not a bank, but works with Peoples Trust. KOHO has three plans:

• Essential: $0 per month

• Extra: $12/month

• Everything: $14.75/month or $177/year (koho.ca, reddit.com)
  
  

Cashback rates per plan:

• Essential: 1% on groceries, transit, food and drink (koho.ca)

• Extra: 1.5% on those categories + 0.25% on other purchases (koho.ca)

• Everything: 2% on key categories + 0.5% on all other purchases (koho.ca)
  
  

Interest rates on your entire KOHO balance:

• Essential: 2.5%

• Extra: 3%

• Everything: 4% (koho.ca)
  
  

Overdraft:

KOHO offers Cover, an overdraft perk with a cap fee of $5 per month. Users avoid surprise overdraft charges.

Foreign fees:

• Essential & Extra: standard foreign exchange fees

• Everything: no foreign transaction fees (koho.ca, koho.ca)
  
  

ATM use:

KOHO does not charge ATM fees. You might pay fees from the ATM operator—and KOHO does not reimburse those .

RBC Overview

RBC is a traditional Canadian bank. It offers many products, including chequing accounts, savings accounts, credit cards, and loans.

RBC Chequing Accounts

Day to Day Banking:

• $4/month

• 12 free transactions; $1.25 each thereafter

• Unlimited free public transit payments (rbcroyalbank.com)
  
  

Advantage Banking:

• $11.95/month

• Unlimited debit transactions in Canada

• Free Interac e‑Transfers

• No RBC fee on other bank ATMs (rbcroyalbank.com)
  
  

Signature No Limit:

• $16.95/month (~$5 with Value Program rebate)

• Unlimited debits, free e‑Transfers, Avion rewards points (rbcroyalbank.com)
  
  

RBC Savings Account

RBC offers a High Interest eSavings account. The rate is not listed here but is generally lower than KOHO’s 4%. RBC’s savings are also CDIC insured (rbcroyalbank.com).

RBC Credit Cards (Cash Back)

• RBC Cash Back Mastercard (no annual fee):

  • 2% cashback on groceries (first $6,000/year), then 1% after (rbcroyalbank.com)

  • 1% on all other purchases (rbcroyalbank.com)

• Credit card interest rates:

  • 20.99%–22.99% APR on purchases (rbcroyalbank.com)

Verdict

Choose KOHO Everything if you want:

• High interest

• Solid cashback

• No foreign fees

• Capped $5 overdraft
  
  

Choose RBC Advantage if you need:

• Unlimited debit and free e‑Transfers

• In‑person branches and support

• Credit card and loan flexibility
  
  

What Should You Choose?

Use KOHO if you want great interest, good cashback, and low fees with no horizon for loans or big banking. Use RBC if you need a full range bank services like mortgages, credit cards, or physical branches.

Want the best of both worlds? Many Canadians use KOHO for daily cash savings and RBC for more complex banking.

Is There a Koho Promotion to Save Me Money?

Yes, sign up for Koho using the Koho referral link https://web.koho.ca/referral/TJDAD9Y9 and make a purchase of $20 or more within 30 days to get your choice of $20 or 3 free months of Koho's Extra plan.

If you don't like clicking links (we know, you can never be too careful!) you can do it manually. Just use code TJDAD9Y9 when you sign up with Koho and make a purchase of $20 or more within 30 days to get your choice of $20 or 3 free months of Koho's Extra plan.