KOHO vs Neo (2026): Which Digital Bank Is Better?
The short answer: KOHO wins for credit building from scratch, everyday cashback, and zero foreign fees; Neo wins for no-strings savings interest and big partner-store cashback. Neither offers TFSA/RRSP cash savings.
Round 1: Monthly fees
Both start free. KOHO’s plans run $0, $12, or $14.75 per month; Neo’s run $0, $7.99, or $12.99. Paid tiers add cashback and interest boosts, but for most people free beats paid — the free plans already cover everyday spending, e-transfers, and savings basics.
Winner: Tie.
Round 2: Interest
Both pay 2% on their free plans. Neo pulls ahead if you keep $5,000 or more parked: its Build plan fee is waived at that balance, unlocking a higher rate without paying monthly. Below that, there’s little daylight between them.
Winner: Neo for $5,000+ savers, otherwise tie.
Round 3: Cashback
KOHO pays 1–2% cashback on groceries, transport, and food — predictable money back on spending you already do. Neo advertises up to 15% back at 12,000+ partner stores, which is spectacular when it hits — but users report rewards shrinking or disappearing without warning, so don’t budget around it.
Winner: KOHO for everyday spending, Neo for partner-store shoppers.
Round 4: Credit building
KOHO’s Credit Builder costs $5–10 per month, reports to Equifax, and — crucially — there’s no credit check to open a KOHO account at all. Neo’s secured card requires a deposit up front, and users report undisclosed hard checks during signup. For anyone starting from zero, it isn’t close.
Winner: KOHO by a mile — the newcomer pick.
Round 5: Moving money
Both offer free unlimited e-transfers. Neo gives you access to the Exchange Network of ATMs; KOHO has no ATM network of its own. On foreign spending, KOHO charges 0% FX on its paid plans while Neo charges 2.5% — a meaningful gap for travellers.
Winner: split.
Round 6: Customer service
This is where both stumble. KOHO users report support that’s near-unreachable when something goes wrong; Neo users report weak dispute resolution and accounts that are frustratingly hard to close. Our advice stands regardless of which you pick: keep a backup account somewhere else.
Winner: neither — keep a backup account.
Who should choose KOHO
- Newcomers to Canada — no credit check to open, and credit building from day one.
- Credit rebuilders — Credit Builder reports to Equifax for $5–10/month.
- Budgeters — predictable 1–2% cashback on groceries, transport, and food.
- Travellers — 0% foreign transaction fees on paid plans.
Open a KOHO account (affiliate link)
Who should choose Neo
- $5,000+ savers — the Build fee is waived at that balance, so you earn more interest with no monthly cost.
- Deal hunters — up to 15% back at 12,000+ partner stores.
- ATM users — Exchange Network access for cash deposits and withdrawals.
- Real-credit-card seekers — a proper credit card path instead of prepaid.
Open a Neo account (affiliate link)
Frequently asked questions
Is KOHO safe? Is Neo safe?
Both operate through regulated partner trust companies rather than holding deposits directly, so your money sits within Canada’s regulated system. Neither is itself a CDIC member bank — if that distinction matters to you, EQ Bank, Simplii, or Tangerine are CDIC-insured.
Does Neo do a hard credit check?
Neo’s basic account can be opened without one, but users report undisclosed hard checks when applying for Neo’s credit products. If you’re protecting a thin credit file, read every consent screen carefully.
Do KOHO or Neo offer TFSA or RRSP accounts?
No — neither offers TFSA/RRSP cash savings. If registered accounts matter to you, look at EQ Bank or Wealthsimple Cash instead.
Which is better for newcomers to Canada?
KOHO. No credit check to open, a credit builder that reports to Equifax, and 0% foreign fees on paid plans for money you’re still moving from abroad.
Can I use both?
Yes — and many people do. KOHO for daily spending and credit building, Neo for partner-store deals and ATM access. Just keep an eye on which paid tiers you’re actually using.
The final verdict
| If you want… | Pick |
|---|---|
| To build credit from zero | KOHO |
| Predictable everyday cashback | KOHO |
| Zero foreign transaction fees | KOHO |
| The best rate on $5,000+ in savings | Neo |
| Big cashback at partner stores | Neo |
| ATM access across Canada | Neo |
| TFSA/RRSP savings | Neither — see our banking comparison |
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