KOHO Vs EQ Bank 2023 [Complete Comparison Guide]
Navigating the realm of finance can be daunting, especially when you're confronted with a plethora of banking options.
This is particularly true when comparing high-potential contenders like KOHO and EQ Bank. You may ask, KOHO vs EQ Bank: History and BackgroundKOHO vs EQ Bank, what's the right choice for me?
This guide will shed some light on these top banking alternatives and help you decipher which best fits your unique financial needs.
We’ll dive into each platform's core features, benefits, and potential drawbacks without overwhelming technical jargon. The goal is to equip you with clear information without the jargon that often clouds the finance world.
By the end of it, you'll have a sharper perspective and make a more informed decision on these bank debates.
KOHO Vs EQ Bank: History and Background
KOHO, founded in 2014 by Daniel Eberhard, is primarily a tech company that provides a reloadable Visa card and integrated app to help Canadians budget and save money.
Built on the premise of "no hidden fees," KOHO aims to offer transparency in personal finance. They partner with People’s Trust Company, an established Canadian financial institution.
EQ Bank is a trademark of Equitable Bank, established in 1970. Launched in 2016, EQ Bank bridges the gap between traditional and innovative technology, providing a digital banking experience. Known for its Savings Plus Account, which offers high interest rates without any monthly fees.
KOHO Vs EQ Bank Accounts Options
When it's about banking services, your account is the foundation. Every transaction, deposit, and withdrawal revolves around it.
Choosing a bank usually depends on the types of accounts offered. So, let’s put KOHO and EQ Bank accounts under the microscope and see what we find.
KOHO brings a uniquely striking account structure to the table. Unlike traditional banks, KOHO provides options catering to virtually all user categories.
1. Free: The free account from KOHO is a bold approach towards customer-friendly banking service.
- It's cost-free.
- Earn 1% cash back on grocery and travel expenses.
- Enjoy 0.5% interest on your total balance in the account.
- Experience zero monthly charges.
2. Essential: The Essential package costs just $4 per month.
- Get back a 1% return as you spend on groceries, transportation services, meals, and drinks.
- 4.5% interest for the initial $500 in your account; this continues at 2% for any amount that exceeds $500.
3. Extra: Priced at $9/month, the Extra package presents more benefits.
- You would receive a 2% return for your first $1,000 spent, and beyond this limit, you'll get a solid 3%.
- Also, it doesn't levy charges for international transactions.
4. Everything: If you seek inclusivity in banking privileges, the Everything package priced at $19/month might be suitable.
- Enjoy an attractive offer where 50% off would be available on Credit Building.
- You would also experience zero foreign transaction fees.
- Plus, it guarantees real-time e-transfers for instant transactions.
There's no denying KOHO’s commitment to serving diverse monetary requirements with its attractive spectrum of account options from Free to Everything.
Akin to KOHO, EQ Bank takes the digital banking platform to the next level by offering an array of accounts designed to cater to varied financial goals.
- Guaranteed Investment Certificates (GICs) offer a risk-free investment option with a guaranteed rate of return.
- Offering 5.75% on a 1-year GIC can be an excellent way to solidify your financial foothold.
2. FHSA Savings Account:
- The First Home Savings Account (FHSA) is designed for first-time homebuyers.
- It offers high-interest rates, facilitating you to gather your down payment more quickly.
3. Savings Plus Account:
- The EQ Bank Savings Plus Account paves the way for impressive earning potential.
- It provides a combined interest rate of 3%, with 2.50% everyday interest and an additional 0.50% when you set up direct deposit or pre-authorized debits.
- Experience banking with no monthly fees or minimum balance restrictions.
- Enjoy free unlimited bill payments, Interac e-transfers, and more.
- Complimentary ATM withdrawals across Canada are made available using the EQ Bank Card.
4. Joint Savings Plus Account:
- The Joint Savings Plus Account offers a shared banking experience with all the perks of the individual Savings Plus Account.
5. TFSA Savings Account:
- Tax-Free Savings Accounts let you save and invest while earning tax-free growth on your investments.
- You can enjoy a 3% tax-free interest rate
- There are zero fees or minimum balance requirements.
6. US Dollar Account:
- EQ Bank offers a unique feature allowing customers to earn interest on their US dollar deposits. This could be particularly helpful if you frequently transact in US dollars.
- The account doesn’t burden you with monthly fees and promises competitive exchange rates for when you need to convert your funds.
7. RSP Savings Account:
- Registered Retirement Savings Plan (RSP) accounts are crucial for long-term financial planning, more so for retirement savings.
- EQ Bank's RSP Savings Account includes tax benefits, such as deferring taxes on your savings until withdrawal, boosting your overall earnings.
- This account is all about flexibility, free from the constraints of maintaining a minimum balance.
8. FHSA Savings Account (for first-time homebuyers):
- Similar to the earlier mentioned FHSA, this one also offers incentives catering to first-time homebuyers.
- It offers a 3% interest rate and allows for tax-free withdrawals for qualifying purposes such as purchasing a home.
9. EQ Bank Card:
- This is not just an ordinary card but a gateway full of possibilities – giving access to the cashback system on purchases, among other things.
- Enjoy free ATM withdrawals across Canada, no foreign exchange fees on transactions, and it can be reloaded easily to continue spending & earning rewards.
10. International Money Transfers:
- This would be noteworthy if you frequently deal with overseas transactions or send money internationally.
- With EQ Bank’s international transfer facility, they claim it can be up to 8 times cheaper than other banks and boast about their zero-markup exchange rate.
This exhaustive list of EQ bank accounts underlines their commitment to versatile banking services, from conventional savings to special-purpose accounts like the FHSA.
Whether saving globally in US dollars or preparing for retirement, EQ Bank covers an impressive range of financial needs.
Product Offerings: KOHO Vs EQ Bank
When choosing between KOHO and EQ Bank, looking deeper into the product offerings is essential.
These offerings are the core features that play a significant role in managing your financial health.
Products like accounts, credit-building services, interest earnings, and overdraft protection shape your banking experience.
Understanding their functioning is crucial to leverage these features efficiently. Let's decode what exactly KOHO and EQ Bank offer:
KOHO primarily presents a hybrid account - spending and saving rolled into one. A prepaid Mastercard couples this multi-faceted account for smooth transactions anywhere in the world, digitally or physically.
A user-friendly mobile application facilitates the validity of this card; even banking beginners will find it easy to navigate.
Behind its simplicity hides some power-packed features:
- Instant 1% cash returns on select category expenditures.
- Up to 4.5% interest on your total balance.
Not bad for something that comes without any monthly account fees!
This is an affordable feature KOHO offers that equips you with an expedited path towards a healthy credit history - all it costs is $10/month.
This service can be an affordable tool for early-stage professionals or students who are kick-starting their credit musical chairs.
With KOHO, you don't just spend; you earn, too! Both spending and saving accounts generate interest over time, pumping up those balances bit by bit every day.
This feature can work wonders if you're seeking a money-management system instead of a simple transactional platform.
Who has never faced contrarian financial tides when bills surpass income? Overcoming such inconvenient phases becomes less stressful with KOHOS’s Cover service – zero-interest overdraft protection!
No more embarrassment or disruptive bouncing checks due to insufficient funds. Emergencies happen, but you have that extra financial cushion if you have KOHO’s Cover.
KOHO flips the conventional banking script by providing a virtual card for every user. This digital partner is your gateway to online purchases and countless mobile payment platforms, riding seamlessly on today’s fast-paced fintech wave. Convenient, secure, and quick – it's virtual payment done right.
If you're skeptical about going fully digital, fret no more; KOHO ensures you have a physical prepaid card compatible with in-person transactions anywhere in the world.
Their physical card goes hand-in-hand with your KOHO account, offering versatility of choice between online or offline payments.
EQ Bank provides a robust investing instrument with its Guaranteed Investment Certificates (GICs).
This popular Canadian investment provides fixed interest rates over a predetermined period, perfect if you cherish stable and assured returns.
EQ Bank Card
A quintessential blend of spending and earnings coexists within EQ Bank’s reloadable card. Features like free ATM withdrawals all over Canada make cash needs effortless. It spices things up with cash back on your purchases, sprinkling extra benefits each time you spend.
Enjoy the luxury of zero FX fees while dealing in foreign currencies, making it a great companion for globetrotters.
International Money Transfers
EQ Bank checks this box perfectly if a cost-effective global money transfer is on your checklist. A staggering statistic reveals that their service could be up to 8x cheaper than other banks! With zero markup on the exchange rate, sending money overseas is simplified like never before.
Dreaming of owning a home? EQ Bank's Mortgage Marketplace is worth your attention, then! Access to over 2,000 mortgage products at favorable rates through an intuitive online process can make those dreams closer than ever.
Cards Offered By KOHO
When it comes to accessible and streamlined banking, the physical cards offered by a financial institution play a vital role.
For KOHO users, two cards stand out for their distinctive features and convenience: the KOHO Prepaid Mastercard and the KOHO Virtual Card.
1. KOHO Prepaid Mastercard:
KOHO aims to revamp your perceptions about banking with its innovative prepaid Mastercard. As a user-friendly option, this card comes packed with several noteworthy features.
- The prepaid card is a part of the free-spending and savings account from KOHO. This integration means you're spending and saving with every swipe.
- It offers cash back on select categories. It adds an exciting incentive to your everyday shopping as you earn returns.
The significant advantage of this card is that it effectively helps control overspending since you can only spend what you have loaded onto your card.
2. KOHO Virtual Card:
A testament to KOHO's commitment to digital banking is its virtual card, which offers an added layer of security, especially when dealing with online transactions.
- The virtual card simply exists in the digital realm as it has no physical counterpart. So, no worries about losing or misplacing your card!
- This accessibility makes it an ideal option for online purchases and transactions across mobile payment platforms.
By providing this virtual option, KOHO has stepped up its game in simplifying online payments while considering customers’ safety against online fraud.
Cards Offered By EQ Bank
EQ Bank goes beyond just offering satisfactory account services; they offer an equally compelling option in banking cards.
This digital-only bank narrows its card offerings to one powerful, multipurpose player - the EQ Bank Card.
Don't let the limited options deter you. EQ has packed this single card with features that uphold its commitment to no-hassle banking.
EQ Bank Card
The EQ Bank Card is more than just a card; it is a financial companion that facilitates usual transactions and has added benefits, too!
- It's a reloadable card, which means you can add money whenever you want, thereby controlling your spending and saving efficiently.
- One primary advantage is free withdrawals from any ATM across Canada, saving you those additional fees.
- Enhancing your shopping experience, the EQ Bank Card gives cash back on purchases, providing more value for your money.
- A major relief for travelers or those dealing with foreign transactions, this card involves absolutely zero foreign exchange fees.
Compared to cards offered by traditional banks filled with hidden charges and restrictions, the EQ Bank Card stands out with its customer-centric features and transparency.
It appeals to modern-day users who demand convenience without compromising on value.
User Experience: KOHO Vs EQ Bank
Your overall experience with a bank extends beyond the tangible benefits or privileges provided.
It's about how seamlessly you can navigate their platforms, the intuitiveness of their interface, and how they prioritize your convenience. Let’s examine the user experience KOHO and EQ bank offer to help you get a clearer picture.
KOHO User Experience
KOHO breaks traditional banking norms by designing a sleek, digital-first platform paired with a prepaid Mastercard and an easy-to-use mobile app.
- Their digital interface is streamlined for the everyday user - providing clear paths for transactions, easy access to balance checks, and real-time updates on your spending.
- KOHO doesn't just serve as your wallet; it could also be considered your financial assistant. With instant cashback and interest-earning capabilities, every transaction with them is mathematically designed to benefit you.
- The platform places heavy importance on simplicity and financial empowerment. From creating an account to transferring funds or analyzing your spending habits— everything about KOHO screams usability. Thanks to their soft credit check process, they’ve even made sure not to impact your credit score during account setup.
Their contemporary design is intuitive enough for users of all age groups and technological fluencies.
Customer support is easily reachable through the KOHO app if you find yourself needing assistance along the way.
EQ Bank User Experience
In its traditional form, banking can feel overwhelmingly complex and laden with barriers. EQ Bank shatters these barriers by embracing modern technology to offer an effortless banking experience that's easily accessible through your fingertips.
- Numero Uno: Forbes recognized EQ Bank as the #1 bank in Canada on their 2023 list. This accolade isn't merely a title; it reflects EQ Bank's commitment to offering excellent banking services.
- High Interest, Zero Fees: With EQ Bank, salting away your hard-earned money is rewarding. They offer high-interest rates on savings without imposing fees on everyday banking activities – a win-win situation for you.
- Striking the Right Note: The bank mitigates hassles with its digital platform. Forget the nonsense of physical branches; enjoy easy access to your money anytime, anywhere.
- Your Debit Card Companion: EQ Bank offers the EQ Bank Card as part of its service suite. With this card in your wallet (or digitally stored on your phone), spending and earning become intertwined activities.
- No More Stark Exchange Rates: Make friends overseas or expand your business internationally without worrying about hefty transaction charges. EQ Bank ensures competitive rates for international money transfers.
- Accessible Home Mortgages: Equipping future homeowners with tools for success is an integral part of EQ’s mission. Through their Mortgage Marketplace, they provide easy access to various mortgage products.
- Prioritizing Security: Navigating digital spaces can be problematic regarding security. Rest assured, the EQ Bank mobile app prioritizes security protocols while being user-friendly.
Throughout all their offerings, EQ Bank manages to keep it simple while not compromising on value or security.
Security Measures: KOHO Vs EQ Bank
Navigating the world of online banking can be intimidating, especially regarding matters of security. Let's face it: who wants their hard-earned money potentially exposed to fraud or miscreancy?
Institutions like KOHO and EQ Bank have gone the extra mile by implementing robust security measures to keep your funds safe and sound. We'll examine both institutions below:
Shrugging off the traditional banking model, KOHO has made impressive strides to ensure client safety using cutting-edge technology.
- In-app card locking for security: This feature on the KOHO app provides users with added control and peace of mind. If you ever lose your card or fear unauthorized access, lock your card straight from your phone.
- Protected online shopping: It's no secret that shopping online can sometimes leave you open to fraud. But with KOHO's secure platform, these worries are put on the back burner.
- Top-tier security for money: With multiple layers of protection, including encryption and biometric features, KOHO ensures that your money stays in your account.
- Partnering with a powerhouse: Laying aside any remaining doubts is the fact that KOHO has joined forces with Peoples Trust Company, a federally regulated bank known for strong compliance and operational standards.
- CDIC insured: This means that even if something went wrong financially with KOHO, your funds up to $100,000 in interest-bearing accounts are safeguarded by the Canadian Deposit Insurance Corporation (CDIC). So you can breathe easy knowing your savings have a double layer of protection.
They also do a soft credit check at setup as another line of defense against fraudulent registrations, so you're in good hands before starting with them!
Hence, it is clear that banking with KOHO would mean enjoying their advanced financial instruments and peace of mind, with your fund's safety as their utmost priority.
EQ Bank is a standout for several solid reasons that bolster user confidence. Offering a distinctly secure digital banking experience, it provides around-the-clock access to financial services so you can manage your money literally at your fingertips.
- Their platform offers secure digital banking, keeping your data and transactions safe with industry-leading security measures.
- Then there's the Canadian Deposit Insurance Corporation (CDIC) insurance. This means every deposit product you hold with EQ Bank is insured up to the maximum law allows. So you do not have to worry about losing your hard-earned money due to unforeseen circumstances.
- EQ Bank is backed by Equitable Bank, which boasts over 50 years of amassed wisdom in the finance sector. That kind of backing speaks volumes about their stability and reliability.
To make things even better, EQ Bank has attractive account options that cater to varied financial aspirations.
These include Guaranteed Investment Certificates (GICs), high-interest saving accounts, tax-free saving accounts (TFSA), registered retirement savings plans (RRSP), and much more.
Savings Plus Account is their notable offering, providing high-interest rates without any monthly fees and everyday banking cases without transaction limits.
Customer Reviews: What Users Are Saying
Trusting online reviews is integral to decision-making in the digital age. What do everyday users feel about KOHO and EQ Bank?
Does their experience echo the promises made by these platforms? Or do we unveil a different reality behind glossy advertisements?
To add depth and realness to our KOHO vs EQ Bank comparison, we've taken a deep dive into Trustpilot, a popular customer review platform.
KOHO Customer Reviews
Regarding KOHO, users have shared mixed reviews detailing positive experiences and improvement areas.
- No option to redirect email transfers.
- Need more reliable service for certain services.
- Account closure with funds inside and no explanation.
- Unsolicited emails after leaving KOHO.
- Login issues with the app.
- Slow direct deposit and ATM withdrawal fees.
- Negative experience with account features and customer service.
- Delays in outgoing transfers.
- Account closure without valid reason by KOHO employee.
- Need more funds during transfer with poor customer
FAQs about KOHO Vs EQ Bank
What do customers say about unauthorized transactions on EQ Bank?
Customers expressed that unauthorized transactions are not fully reimbursed, which has resulted in dissatisfaction and trust issues regarding the platform's security measures.
What was the feedback after EQ Bank acquired AST Financial?
Negative customer experiences were reported after EQ Bank acquired AST Financial, with users expressing a drop in service quality.
How trustworthy is the EQ Bank app and website?
Users have indicated app and website issues, leading to concerns about trusting the platform for their banking needs.
What doubts are there surrounding EQ Bank's security measures?
Following instances of account compromise, some customers raised security concerns about the protection level offered by EQ Bank.
How has communication been during security breaches at EQ Bank?
Reviews highlight poor communication during security breaches, causing user frustration and trust deficits.
How does EQ Bank handle foreclosure proceedings?
According to certain customers, foreclosure proceedings occurred without proper communication, leading to unexpected shocks and dissatisfaction.
Is the cashback feature of EQ Bank satisfactory?
Some users had a negative experience with the cashback feature, stating unclear terms or calculation methods.
How long does it take for investigations regarding unauthorized activity on bank cards at EQ Bank?
Customers commented that lengthy investigation times for unauthorized card activities led to frustrations due to delayed resolutions.
What are customers' opinions on EQ's holding money policy?
EQ’s holding money policy garnered negative reviews from users who found it restrictive and inconvenient.
Are there any technical issues with the EQ bank iOS app?
Yes, users reported technical issues with the platform's iOS application, impacting their overall user experience.
Are there trade-offs between high-interest rates and features on the app or website at EQ Bank?
According to some reviews, while the high-interest rates offered by EQ bank draw people in, there seem to be missing features on both their application and website, which hampers user experience.
How fast are transfers from external accounts at EQ Bank?
Customers reported delays in transfers from external accounts, negatively impacting their perception of EQ Bank's efficiency.
Choosing between KOHO and EQ bank doesn't have to be a painstaking dilemma. Armed with all this detailed information, you're better equipped to make an informed decision.
The perfect fit in any banking service depends on your needs - high-interest rates, an easy-to-use app, or top-notch customer service.
Both KOHO and EQ Bank continue to reshape traditional banking paradigms. The best part? You get to decide how that story unfolds for you.