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?

1. Customer balances are at Peoples Trust, not KOHO. They don't get caught in a KOHO insolvency.
2. CDIC would coordinate transfer of accounts to another CDIC-member institution.
3. Worst case: temporary access disruption (days to weeks) while accounts are migrated.
4. 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

• Full KOHO Review 2026
• KOHO Earn Interest Review
• KOHO Credit Building Review

Sources: CDIC member list and coverage rules, Peoples Trust deposit-insurance disclosure, KOHO product terms. Last reviewed: April 22, 2026.