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How Interest is Calculated
How Interest is Calculated
Updated over a week ago

KOHO Easy

Daily Closing Balance

Interest Rate

All balances

3%

KOHO Essential

Daily Closing Balance

Interest Rate

All balances

5%

KOHO Extra

Daily Closing Balance

Interest Rate

All balances

5%

KOHO Everything

Daily Closing Balance

Interest Rate

All balances

5%

*Interest rates are per year, calculated daily, paid monthly, and can change at any time without notice.


How is interest calculated?

So let’s say you have $1,000 at KOHO, you sign up to earn 3% interest (interest rate could vary depending on your account), and you leave your $1,000 for 365 days.

Depending on your account type, if your interest rate is 3%, that means you will receive approximately $30 for the year (3%*1000). Keep in mind that interest is calculated daily and paid out monthly on the 6th. Therefore, you will receive approximately $2.50 monthly, which is expressed as the following (using January as an example): (31/365)*$30 = $2.50.

Each month you will receive slightly more interest, thanks to the monthly compounding 💸

The interest is earned on your entire KOHO balance - so this includes Vault!


When is interest paid?

Your interest will come in as a payment on the 6th of the month, but will be posted-dated to the 3rd on your transaction feed.


Is the interest I earn considered income?

Yes, and you will likely have to pay income tax on the interest you earn from this feature. Each year, we will send you a return of investment income slip (T5) to be submitted along with your personal income tax return. A T5 shows how much investment income you earned for a given tax year.

You can also review the interest you earned each month by going to your statements. Just go to Monthly Statements, and click on the statement tagged Save.

*Just a heads up, Earn Interest is only available for Personal Accounts. In order to enjoy these benefits, be sure you're using your Personal card!*

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