Is Koho Safe to Use? (Yes, Here’s Why)

Koho app open on mobile phone on desk
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KOHO is just as safe to use as any other financial institution.

Canada has some pretty strict financial regulation laws, and KOHO has prioritized the implementation of rigorous security measures to safeguard user information and ensure the safety of transactions.

These security measures include:

  • CDIC Insurance: KOHO is partnered with Peoples Trust, a federally regulated banking institution that is CDIC insured. All customer funds on the KOHO prepaid mastercard are held at Peoples Trust. That means if in the unlikely event KOHO was to go under, you are protected for up to $100,000 of your deposits.
  • Implementation of multi-factor authentication: To access their accounts, users must undergo a two-step verification process, providing an additional layer of security.
  • Utilization of end-to-end encryption: Sensitive data such as personal and financial information is encrypted both during transmission and while at rest, rendering it indecipherable even if intercepted.
  • Regular security updates: KOHO actively monitors potential vulnerabilities and consistently updates its systems to address any identified risks, proactively staying ahead of potential threats.
  • Fraud detection and prevention: Advanced algorithms are employed to swiftly detect and prevent any fraudulent activities. Suspicious transactions and unusual account activity are promptly flagged and thoroughly investigated.
  • Trusted payment processing and compliance: KOHO collaborates with reputable payment processors and financial institutions, adhering to industry-standard security protocols and complying with regulatory requirements.

Using KOHO for Your Personal Finances

Using KOHO is a great way to manage your personal finances.

According to KOHO, the average KOHO user spends a full 15% less than they did before joining KOHO.

What features does KOHO offer for managing personal finances?

KOHO offers a mobile banking app for managing personal finances.

Users can view and track account balances, transaction history, and upcoming bills.

The app provides real-time notifications for transactions.

KOHO also has budgeting features to set spending limits and track expenses.

Transactions can be categorized for insights into spending habits.

KOHO offers savings tools like RoundUp, which saves spare change by rounding up daily transactions.

Users can see savings goals and progress.

You can also earn up to 4.5% in interest by putting your money into KOHO’s high-interest savings account. 

How does KOHO help with budgeting and saving?

One of the key tools provided by KOHO is its budgeting tool.

This tool allows users to set spending limits in different categories such as groceries, entertainment, and bills.

By doing so, users can effectively track their expenses and stay within their budget.

KOHO enables users to set savings goals and monitor their progress.

Whether it’s saving for a vacation, a house down payment, or an emergency fund, KOHO keeps users motivated and on track towards achieving their goals.

KOHO also offers spending insights and analysis.

It provides users with a clear understanding of where their money goes, making it easier to identify areas where they can cut back and save.

This valuable information assists users in making informed financial decisions.

A major advantage of using KOHO is its transparent fee structure.

Unlike other platforms, KOHO prides itself on its no hidden fees policy.

This allows users to save more without worrying about unexpected charges eating into their savings.

Frequently Asked Questions

  • Is KOHO a safe and secure option to manage spending?
  • Is KOHO technically a bank?
  • No, KOHO is not technically a bank, but it offers a subset of banking services.

  • Are there better options available than KOHO?
  • KOHO is a reputable and safe choice for managing spending, but there are various competitors in the market like Neo and Wealthsimple.

  • What are some benefits of using KOHO?
  • KOHO offers plenty of benefits like no monthly fees, budgeting tools, real-time transaction notifications, round-up savings, cashback rewards, direct deposit, and security features. It encourages responsible spending, provides financial insights, and supports mobile payments, making it a cost-effective and user-friendly way to manage your day-to-day spending.

  • Can KOHO help me build my credit score?
  • Yes, KOHO offers a Credit Building feature that can help users improve their credit score within as little as 6 months simply by using their prepaid credit card.

Tara Al-Khudairi

Tara Al-Khudairihas worked in the financial services industry since 2017. She graduated from McMaster University with a degree in Finance and is pursuing her CFA.

She has worked at a major Canadian financial institution in various client-facing advisory roles, starting as a bank teller and working up to a Client Services Associate within the Asset Management division. She specializes in simplifying concepts of personal finance for people of various financial backgrounds.

When she’s not examining the markets looking for the next SHOP.TO, she’s either practicing yoga, planning her next vacation, or has her nose buried deep in a book.