KOHO is a well established “neo bank” serving Canadians who reside in Canada. The main difference between KOHO and traditional banks, is the fact that there are no physical branches. Everything you need from a bank (and more ) is available at your finger tips via the KOHO app.
- What is KOHO Early Payroll?
- How does KOHO Early Payroll Work?
- Does KOHO Early Payroll Have Interest or Fees?
What is KOHO Early Payroll?
KOHO has rolled out many features over the past year, but perhaps the most anticipated feature to be released is called KOHO Early Payroll. The feature is designed to bridge the financial gap in the final few days before you receive your pay cheque. Sometimes, unplanned spend can hit you when you least expect and with KOHO Early Payroll, you can effectively get an advance on your monthly pay cheque to allow you to buy essentials and not leave you struggling.
During the COVID-19 pandemic, which has devastated some areas of the economy, an ethical solution to help those struggling has been in demand. KOHO have responded to this and managed to roll out their solution which is maybe one of the best solutions offered in the banking world.
How does KOHO Early Payroll work?
In essence KOHO Early Payroll allows Canadians to access $100 worth or an upcoming CERB payment before payday. The idea is that customers can use this $100 to buy essential items or pay bills rather than struggle until pay day or worse, use high interest short term loans.
Earlier this year a partnership between KOHO and the Canada Revenue Agency was made to allow CERB payments to be issued via the KOHO app. This means that KOHO is in a position to allow $100 in advance of your CERB payment, instantly into your KOHO account. It is worth noting that you can only use this feature 3 days before your scheduled payment date.
Does KOHO Early Payroll Have Interest or Fees?
The short answer is no. The whole objective of KOHO Early Payroll is to offer customers a more ethical and safe way of accessing funds during financial hardship. Many Canadians turn to high interest short terms loans which can actually make the situation much worse. For that reason, KOHO does not have any interest or associated costs when using this feature.
When comparing KOHO Early Payroll to short term financial lenders, the difference is quite shocking. For example, borrowing $300 over a 14 day period typically will cost $63 in associated costs. With this in mind, it’s clear that KOHO is a more responsible and safe option during times of financial hardship.