KOHO, a Canada-based challenger bank that offers Canadians an alternative to traditional banking, announced on Friday the launch of its first no-fee savings account, KOHO Save. Koho reported that the new product, which is now available in the KOHO app, offers a highly competitive 1.2% interest on a user’s entire balance, with no teaser rates and no minimum balance required.
KOHO further revealed that users on KOHO Save will have their entire balance held in trust at a CDIC member institution. In doing so, KOHO provides an increased level of insurance and peace of mind for users looking to load and save more money. CDIC insures eligible cash balances payable in Canada up to $100,000 per client per member institution within each insured category. While sharing more details about the account, KOHO Founder and CEO, Daniel Eberhard, stated:
“We’re excited to add KOHO Save to our product line as a simple and valuable money earning tool for Canadians. We’ve been able to build a savings tool that doesn’t follow the same restrictions of most other savings products on the market. People just want to access their money freely and earn a great interest rate. We think Save is a wonderful step in that direction.”
As previously reported, Koho is offering a new approach to spending and saving. The startup recently reported that in less than two years, it has grown to more than 120,000 accounts, and has moved its HQ to Toronto as well as released 43 new versions of the app. KOHO operates as both a chequing and savings account, which means users can spend, save, and earn, all in one place. Customers may opt into KOHO Save in the app and their entire balance will start earning 1.2% interest right away.