No-fee prepaid credit card/pseudo-bank account purveyor Koho launches Koho Save | General financial discussion | Discussion forum

Saw this on social media, so I looked into it. No-fee prepaid credit card and essentially pseudo-bank account purveyor Koho Inc. has announced that early in 2020, it's launching Koho Save. Looking through the details in the FAQs, it's essentially a private-label version of Wealthsimple Save that lets individuals deposit up to $1 million in fully CDIC deposit instruments that pay an effective annualized yield of 2%, calculated daily and paid monthly.

It's very similar to Mercer Invest Wise, powered by Wealthsimple, which is targeted to employer group retirement savings plans administered by global plan administrator and consultancy Mercer (part of Marsh & McLennan Companies). Though targeted to employees of employers whose plans are administered by Mercer, anyone can sign up for Mercer Invest Wise, which includes access to Wealthsimple Save's product offering as well, if they prefer their e-Statements to be branded Mercer Invest Wise instead of Wealthsimple Invest.

Interestingly, while the Manitoba CUs, Motus Bank, Alterna Bank, Motive Financial, Manulife Bank and LBC Digital/B2B Bank try and grab a few hundred million in deposits, Wealthsimple Save's broker-held savings deposits and a veritable plethora of HISA ETFs have collectively attracted more than $5 billion in deposits so far this year, with no sign of slowing down. This is more deposits than the above combined.

Cheers,
Doug