Is KOHO Safe in 2026? CDIC, Regulation, Trust, the Honest Answer
TL;DR
KOHO is safe to use. Your deposits are CDIC-insured via Peoples Trust up to $100,000. KOHO itself doesn't hold your money on its books. The bigger risks are user-side: phishing, weak passwords, SIM-swap. Use 2FA, a unique password, and a separate email — and your KOHO funds are at least as safe as any big-bank chequing account.
The structure that matters
Most people miss this: KOHO is not a bank. It's a fintech that uses Peoples Trust Company — a federally-regulated Schedule I trust company and CDIC member — to hold customer funds. When you deposit money into KOHO, it doesn't sit on KOHO's corporate balance sheet. It sits in a segregated trust at Peoples Trust.
This is the same structure used by Wealthsimple Cash, Neo Money, and many other Canadian fintechs. It is not a workaround — it's the normal way prepaid/fintech products are operated in Canada.
CDIC coverage — the specifics
- Insurer: Canada Deposit Insurance Corporation (CDIC), a federal Crown corporation
- Limit: $100,000 per depositor, per insured category, at Peoples Trust
- What's covered: Your KOHO Spending account balance, KOHO Earn Interest balance
- What's NOT covered: Crypto (KOHO doesn't offer it), uninsured securities, foreign currency above coverage
Important nuance: if you also hold deposits at Peoples Trust directly (e.g. a Peoples Trust GIC), the $100K limit is shared. For most KOHO users this isn't relevant.
What happens if KOHO goes under?
- Customer balances are at Peoples Trust, not KOHO. They don't get caught in a KOHO insolvency.
- CDIC would coordinate transfer of accounts to another CDIC-member institution.
- Worst case: temporary access disruption (days to weeks) while accounts are migrated.
- Loss of funds up to CDIC limit: extremely unlikely.
Regulatory oversight
- FINTRAC: KOHO is registered as a Money Services Business — anti-money-laundering and KYC compliance
- OSFI: Indirectly via Peoples Trust (federally regulated)
- Mastercard rules: The KOHO card operates under Mastercard's network compliance regime
- FCAC: Consumer-protection complaints process available for federally-regulated activity
Security practices
KOHO offers (as of April 2026):
- Two-factor authentication (SMS + biometric in-app)
- Card lock/unlock and freeze in app
- Real-time transaction notifications
- Mastercard Zero Liability for unauthorized purchases
- FCAC-compliant e-Transfer fraud reimbursement when not user-fault
Turn on 2FA the day you sign up. The biggest realistic threat to a KOHO account is a phishing or SIM-swap attack — which a unique strong password + 2FA + a separate email defeats almost entirely.
Risks the marketing doesn't mention
- Account holds. Like any fintech, KOHO can place a temporary hold during fraud review. If you rely on KOHO as your only account, keep a buffer elsewhere.
- Customer support latency. When something goes wrong on a Saturday night, you're emailing — not calling a 24/7 banker.
- Brand acquisition risk. KOHO has been speculated about in M&A circles. A future acquirer could change product terms, fees, or rates.
- Not a substitute for full banking. No mortgage, no chequebook, no in-branch presence, no notarization for legal docs.
How KOHO safety compares
Compared to EQ Bank (a direct CDIC member), Wealthsimple Cash (also Peoples-Trust-backed), and a big-bank chequing account, KOHO's depositor safety is substantively the same. The differences are operational — branch access, customer support hours, integration with mortgages and credit lines.
See KOHO vs EQ Bank for the full operational comparison.
Verdict
Yes, KOHO is safe in 2026 for normal everyday banking and savings within the CDIC $100K limit. Don't use it as your only account, do enable 2FA, and treat it as any modern fintech: powerful, fast, but not your fallback when things go wrong.
Related guides
Sources: CDIC member list and coverage rules, Peoples Trust deposit-insurance disclosure, KOHO product terms. Last reviewed: April 22, 2026.
Editorial disclaimer
This article is published by LoonieLabs for general information only. It is not financial, tax, legal, accounting, or immigration advice and must not be relied on as such. Rules, dollar figures, interest rates, and program eligibility change — always verify with the Canada Revenue Agency, IRCC, or a qualified professional before acting. Spotted an error? See our corrections policy. Last reviewed: April 22, 2026.
Frequently Asked Questions
Written and reviewed by Shrey Patel — Founder & Editor-in-Chief
Winnipeg, MB · Fact-checked by our Banking & Credit reviewer · Last reviewed April 22, 2026 · LinkedIn
Founder of LoonieLabs · based in Winnipeg, MB · writes and reviews every page on the site I oversee every figure on this page personally — verified against primary sources (CRA, IRCC, Statistics Canada, the Bank of Canada, or the originating provincial ministry). LoonieLabs has no affiliate relationships with any bank, credit card, or immigration consultant featured on this site. Spotted a mistake? Tell us.
Published by the LoonieLabs Editorial Team.