Earlier in the month we let you know how KOHO have lowered the earn rates on the Extra Plan and a day after that they removed most of the details of the free Easy Plan. There were questions on what was happening to the plan as it is still shown on the home page but nowhere else on KOHO’s site. We reached out to KOHO and have received details that sure enough, the Easy Plan has been discontinued but in addition to that there will also be changes to Essential Plan.
April 23 UPDATE: These changes are now live as of April 23 (they were originally planned for April 20) and they increased the previously mentioned monthly deposit requirement from $500 to $1,000 to get the essential plan for free.
KOHO Easy Plan to be discontinued as of April 23
The free Easy Plan on the KOHO Prepaid Mastercard has been retired as of April 20 23 , 2024. As of this date KOHO no longer offers a truly free plan as they move to only offering the Essential, Extra and Everything Plans. The Essential Plan now becomes their base level plan and there is the opportunity to get if for free by meeting certain requirements (see next section)
Those with existing KOHO Easy Plans will have their plans grandfathered.
Changes to the KOHO Essential Plan
With the Essential Plan becoming the new base level plan with KOHO as of April 23 there are some changes made to it, most of which are negative changes.
No Base Earn Rate
Any new Essential Plans created on or after April 23 now have a 0% base earn rate. Previously, the plan offers a base 0.25% cash back earn and 1% on cash back on groceries, eating & drinking, and transportation. The card retains the 1% cash back categories however any spending outside of those categories will not earn any cash back
Discount on Credit Building removed
The 30% discount on KOHO’s credit building option with the Essential Plan is no longer offered as of April 23. This means it will run $10 per month for those who choose this plan on or after April 20.
Monthly Fee can be waived
The $4 monthly fee for the Essential Plan is waived for those who complete any one of these two requirements:
- Deposit $1000 per month to their KOHO Essential account OR
- Set up a Recurring Direct Deposit
Existing Essential Plans will be grandfathered
Those with existing KOHO Essential Plans will have their plans grandfathered.
Wrapping it up
KOHO has made sweeping changes to many of the plans they offer for their prepaid Mastercard and surprisingly moved to a model where they don’t have a truly free option. With other prepaid cards like the EQ Bank Card and Wealthsimple Card remaining free, you’ll need to do your homework to see which of these cards may work best for you. The KOHO plans can provide more cash back than those other two but you’ll have to take into account the monthly fees KOHO charges to see which one you can come out ahead with.
Click here to learn more about the KOHO prepaid Mastercard and the various plan options.