Is My Money Safe in KOHO? CDIC Insurance Explained
Does KOHO have CDIC insurance? We explain how your deposits are protected through KOHO's partnership with Peoples Trust.
One of the first questions savvy Canadians ask about any new bank is: “Is it CDIC insured?”
The Canada Deposit Insurance Corporation (CDIC) protects your deposits up to $100,000 in case a bank goes bust. It is the ultimate safety net.
So, is KOHO CDIC insured? The answer is Yes, but with a nuance.
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The “Partner” Model
KOHO itself is not a bank, so it cannot be a CDIC member directly. However, KOHO partners with Peoples Trust Company, which is a CDIC member institution.
How It Works:
- You load money into your KOHO account.
- That money is held by Peoples Trust.
- Because the funds are held at a CDIC member institution, they are eligible for CDIC coverage.
Specific Wording: KOHO explicitly states that if you opt-in to earn interest, your funds are held in trust at a CDIC member institution.
What Is Covered?
- Your Principal: The money you load onto the card (paycheques, e-transfers).
- Interest: The interest you have earned.
What Is NOT Covered?
- Cash Back: Rewards you have earned but not yet “cashed out” to your spendable balance might not be covered until they are moved to the main account (check the latest terms).
- Investments: If KOHO were to offer stocks/crypto (not currently a core feature), those are never CDIC insured.
Conclusion
Your money in KOHO enjoys the same government-backed protection as money in a Big 5 bank, thanks to the partnership with Peoples Trust. You can sleep soundly knowing your savings are safe.
Want to learn more about KOHO’s safety features? Check out our guides on Is KOHO Legit?, KOHO Fraud Protection, and how KOHO compares to banks.
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