Koho and Canada Post team up to offer new Chequing and Savings Account Services

Following a failed lending program two years ago, Canada Post is reentering the banking services sector. The postal service has confirmed a partnership with Koho Financial Inc. to offer chequing and savings accounts nationally next year.

While Canada Post employees will have early access for testing, the MyMoney offering will focus on providing a spending and savings account with features like high interest rates, cashback rewards, and credit-building tools.

According to Canada Post spokeswoman Lisa Liu, the Crown corporation aims to address gaps in existing banking and savings products to better serve new Canadians and those in rural, remote, and Indigenous communities.

A document posted on the Canadian Union of Postal Workers website noted that the new account will utilize a prepaid, reloadable Mastercard feature, offering a debit card functionality with Mastercard benefits. Account tiers will range from no-fee options to paid accounts with additional features.

This move follows the closure of a previous lending program with TD Bank Group in late 2022 due to processing issues. Since then, Canada Post has been exploring alternative financial service offerings.

The new account will be developed in partnership with Koho, which recently enabled customers to deposit cash at post offices and is working towards obtaining a Canadian banking license for expanded services.