How does KOHO earn interest?

If you mean KOHO’s interest-earning account, the short answer is that the money in eligible KOHO balances is typically placed in interest-bearing arrangements with regulated financial partners. That money generates interest at the institution holding it, and KOHO passes part of that return to users under the product terms. KOHO also makes money from other sources, such as plan fees, card interchange, and partner services.

Where the interest comes from

Interest does not appear out of nowhere. In a typical fintech setup like KOHO’s, customer funds are held in accounts or structures that can earn interest. The institution holding the funds may use that capital in low-risk, interest-bearing ways, such as deposits or other regulated arrangements.

So if you’re asking, “How does KOHO earn interest?” the key idea is:

Your eligible balance generates interest at the partner institution or in the underlying product.
KOHO’s app shows you the return based on the published rate and terms.
Depending on the product, KOHO may share all or part of that return with you.

In other words, the interest comes from the way the money is held, not from KOHO simply “adding” money to your account.

Does KOHO keep the interest?

Not necessarily. For interest-bearing features, the advertised return is usually meant for the customer, but the exact economics can vary by product.

KOHO may earn revenue through one or more of these mechanisms:

A service fee or revenue share from its financial partner
Subscription plan fees from paid accounts
Interchange revenue when you use your card
FX or partner-product revenue from related services

The exact split is not always public, and it can change based on the account type or partnership structure.

How KOHO makes money overall

If your real question is how KOHO stays in business while offering interest, the answer is that interest is only one part of the model.

Like many Canadian fintech companies, KOHO can generate revenue from:

Monthly or annual subscription plans
Some features may be tied to paid tiers.
Card interchange fees
Merchants pay fees when you make card purchases, and KOHO may receive a portion of that revenue.
Foreign exchange and premium services
Certain cross-border or value-added features can create additional income.
Partner arrangements
KOHO may be compensated by financial partners for bringing in and managing customer balances.

This mix lets KOHO offer a competitive interest feature without relying on interest alone for revenue.

Why the KOHO interest rate can change

The KOHO interest rate is usually not fixed forever. It may change because of:

Market interest rate changes
Updates to KOHO’s product terms
Changes in the partner financial arrangement
Account or plan differences
Promotional offers or temporary bonuses

If you’re comparing KOHO interest rates to a savings account at a traditional bank, always check the current terms. The rate shown in the app or on KOHO’s website is the one that matters.

Is KOHO actually a bank?

KOHO is a fintech company, not a traditional bank. That matters because the way your money is held, protected, and paid interest can differ from a standard chequing or savings account.

In practice, this means:

KOHO may partner with regulated financial institutions
Your funds may be held in a separate structure or account
The interest feature depends on KOHO’s current product setup

Because of that, the safest approach is to review KOHO’s current product disclosure before assuming the same rules as a bank savings account.

Is the interest taxable in Canada?

Usually, yes. In Canada, interest income is generally taxable.

That means:

Interest earned through KOHO may need to be reported on your tax return
You may receive a tax slip depending on the amount earned and the account structure
It’s a good idea to keep your annual statements for tax time

If you’re unsure how KOHO interest should be reported, a tax professional or the CRA guidance can help.

Is your money protected?

Protection depends on the specific KOHO product and how the funds are held.

Some balances held through regulated institutions may qualify for deposit insurance or similar protections, while others may not. The details can vary widely between fintech products, so it’s important to check:

KOHO’s current terms and conditions
The name of the partner institution
Any insurance or protection disclosures in the app

Never assume all fintech balances have the same protection as a standard bank account.

Bottom line

KOHO earns interest-related revenue by placing eligible customer funds in interest-bearing arrangements with financial partners, then sharing returns with users according to the product terms. KOHO also makes money from subscriptions, card usage, and partner revenue, which helps support the service overall.

If you’re evaluating KOHO for savings, focus on three things:

the current interest rate
the terms that apply to your account
the protection and tax implications

Quick FAQ

Does KOHO earn interest on my money?

Your eligible balance may earn interest through KOHO’s partner-backed setup. KOHO may also earn a separate fee or revenue share from that arrangement.

Can KOHO change the rate?

Yes. Interest rates can change based on market conditions and KOHO’s product terms.

Is KOHO interest better than a bank savings account?

It depends on the current rate, fees, protections, and how you use the account. Compare the full offer, not just the headline rate.

Do I pay tax on KOHO interest?

Generally, yes. Interest income in Canada is usually taxable.

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