Interest is calculated daily on your balance as of midnight MST. We take your annual interest rate and divide it by 365 days (366 in leap years) to determine your daily interest.
Your interest compounds monthly, meaning you'll earn interest on your previously earned interest too! 💸
Good news: Interest is earned on your entire KOHO balance, including any money in your Vault!
Example Calculation
If you have $1,000 in your KOHO account with a 3% annual interest rate and maintain this same daily balance for a year:
Annual interest: $1,000 × 3% = $30
Monthly interest payment (January example): $30 × (31/365) = $2.55
Remember that since interest is calculated daily and paid monthly, your actual earnings may vary slightly based on balance or interest rate changes throughout the month.
When is interest paid?
Interest is calculated daily and paid monthly, deposited directly into your KOHO account on the 1st of each month. Depending on your time zone, the interest may appear in your account either on the last day of the month or the first day of the following month.
For example, your October interest might be deposited on either October 31st or November 1st.
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. In order to view your statements, just open your KOHO app, tap on the profile icon in the upper left corner and tap on Monthly Statements!
*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!*