KOHO, Wealthsimple and EQ Bank are three popular no-monthly-fee options Canadians use to hold side hustle income, and each is good at a different job. The goal for most side hustlers is simple: keep business money out of your personal chequing account and set aside enough for income tax, CPP and GST/HST before you spend it. Rates and features below come from each company’s own pages on October 7, 2026; interest rates change, so check the live page before you move money.
This comparison builds on separating business and personal money, how much tax to set aside, and Wealthsimple vs a bank business account.
How do KOHO, Wealthsimple and EQ Bank compare for side hustle money?
All three skip monthly account fees on their base option; they differ in how interest is earned and what else the app does.
| Option | Best for | Pricing | In Canada | Pros | Cons |
|---|---|---|---|---|---|
| KOHO | Day-to-day spending of side hustle income with cash back | Essential $0/month; Extra $12 and Everything $14.75 per month as listed (check billing period) (source) | Canadian prepaid Mastercard; interest-earning funds held in trust at CDIC members |
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| Wealthsimple Chequing | Several labelled buckets (tax, GST/HST, spending) plus investing in one app | No monthly account fees (source) | Canadian; up to 2.25% interest by client tier; up to 8 accounts |
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| EQ Bank | A separate high-interest place to park tax and GST/HST set-asides | Zero everyday banking fees (source) | Canadian bank (Equitable Bank, a CDIC member); up to 8 accounts |
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Prices and features from each company's own pages, checked October 7, 2026. They change often; confirm on the official site before you buy.
Which is best for setting aside tax on side hustle income?
A separate interest-earning account you rarely touch is the simplest way to hold tax money. EQ Bank’s Notice Savings Account is built for this: it listed 2.35% with 10 days’ notice and 2.75% with 30 days’ notice, so the money is out of reach for impulse spending. Wealthsimple lets you open several accounts and label one “tax”. KOHO’s interest depends on which plan you pay for.
Plan the set-aside around your tax deadlines. If your net tax owing is more than $3,000 ($1,800 in Quebec) this year and in either of the two previous years, the CRA expects quarterly instalments, as explained in CRA tax instalments for side hustlers.
Illustrative example
Assumed numbers, not a forecast: a side hustler invoices $1,500 in a month and moves 25% into a tax account.
- Tax set-aside: $1,500 × 25% = $375.
- Left for spending or reinvesting: $1,500 − $375 = $1,125.
The 25% is an assumption for the arithmetic only; your rate depends on your total income and province. Our tax set-aside guide shows how to estimate yours.
Who should pick KOHO, Wealthsimple or EQ Bank?
Match the account to the job. This is a decision rule from the published features, not a ranking.
| If you… | Lean toward | Why |
|---|---|---|
| Want cash back on side hustle spending and a simple app | KOHO | Cash back and interest built into its plans |
| Want separate labelled buckets and may invest surplus | Wealthsimple | Up to 8 accounts, chequing and investing in one place |
| Want a hands-off tax savings account | EQ Bank | Notice savings rates for money you won’t touch |
| Are registered for GST/HST with business expenses | A business account at a bank or credit union | Cleaner records; see the business-account guide |
Many side hustlers use two: one account where clients pay you, and one where tax money sits. Whatever you use, the CRA expects records that support your income and expenses (business records), so download statements each month.
What mistakes do side hustlers make with these accounts?
- Spending the tax money. Move the set-aside the day you are paid.
- Chasing a promotional rate. Bonus rates end; compare the base rate and conditions.
- Assuming every dollar is CDIC-protected. Read each provider’s CDIC notes; KOHO says funds not earning interest are not eligible.
- Using a personal account for a busy registered business. It works for small side hustles, but bookkeeping gets harder as volume grows.
- Forgetting sign-up bonus tax rules. See bank account sign-up bonuses.
Which tax rules matter when you hold side hustle income?
Interest you earn on these accounts is generally taxable income, and your side hustle profit is reported on Form T2125 whichever account it lands in. Keep monthly statements as part of your records. This is not tax or financial advice.
Which guides sit next to the KOHO vs Wealthsimple vs EQ Bank comparison?
Read separating business and personal money, business bank accounts for side hustles and how much tax to set aside. To track the money once it lands, compare FreshBooks vs Wave vs QuickBooks.
What are the common questions?
Is KOHO a bank account?
KOHO describes its card as a prepaid Mastercard issued by KOHO Financial. When you opt in to earn interest, KOHO says funds are held in trust with CDIC member institutions and are eligible for CDIC protection up to $100,000 per beneficiary per member institution; funds not earning interest are not eligible.
What interest does EQ Bank pay in 2026?
On October 7, 2026, EQ Bank listed 2.75% on its Personal Account for customers with direct deposits of at least $2,000 a month, and 2.35% or 2.75% on its 10-day and 30-day Notice Savings Accounts. Rates change, so check the live page.
Does Wealthsimple Chequing charge a monthly fee?
Wealthsimple's chequing page says there are no monthly account fees, with interest up to 2.25% depending on client tier, reimbursed ATM fees and no FX fees, as listed on October 7, 2026.
Do I need a business bank account for a side hustle in Canada?
A sole proprietor can generally use a separate personal account for a small side hustle, as long as records are complete. A business account becomes more useful as volume grows or once you register a business name.
Is interest on my tax savings account taxable?
Interest earned in a regular (non-registered) account is generally taxable income in Canada. This is general information, not tax advice.
Which sources support this guide?
The rules, rates, and platform requirements in this guide are checked against these primary sources. Retail price ranges are labelled as ranges to verify locally, and they are not quotes.
- KOHO plans and features — KOHO Financial
- Wealthsimple Chequing — Wealthsimple
- EQ Bank Personal Account — EQ Bank
- EQ Bank Notice Savings Account — EQ Bank
- Business records — Canada Revenue Agency
- Paying your income tax by instalments — Canada Revenue Agency