What three popular apps disclose
| App | What it is | Where money is held, per the company | Coverage it describes |
|---|---|---|---|
| Neo Financial | Fintech company | Partner CDIC member institutions (an earlier disclosure named Concentra Bank) | Up to $100,000 combined across its chequing and savings accounts |
| KOHO | FINTRAC-registered money services business | Peoples Trust | Up to $100,000 of eligible funds once you opt in to Earn Interest |
| Wealthsimple | Investment dealer (CIRO member) and money services business | In trust at up to 10 CDIC member institutions (not named) | Up to $1,000,000 combined, spread across members |
Why “held in trust” matters
When an app holds your money in trust at a CDIC member, the coverage you get depends on CDIC’s trust rules and on the member having the right records. Trust deposits are covered separately from deposits you hold in your own name at the same member; money a fintech places in your own name, rather than in trust, shares that member’s limits with your other deposits there. Because some apps don’t name their partners, you may not be able to check.
Questions to ask any app
- Is the company itself a bank, a CDIC member, or neither?
- Which institution holds my money, and is it on the CDIC list?
- Do I need to opt in to anything for coverage to apply?
- Who handles complaints, and is OBSI available?
- What happens to my money if the app shuts down?
Is money in a fintech app protected the same way as at a bank?
Not automatically. CDIC says fintechs don’t have banking licences, are not CDIC members and are not insured by CDIC. Your money is protected only if the fintech places it as eligible deposits with a CDIC member, and only if it sits in an account in your name or in a trust account where you are named as a beneficiary.
Three ways an app can hold your money
| How the app places your money | CDIC protection for you |
|---|---|
| In an account in your own name at a CDIC member | Your own-name category at that member, combined with your other own-name deposits there. |
| In a trust account at a CDIC member, with you named as beneficiary and your name, address and amount owed on the records | Up to $100,000 per beneficiary, separate from deposits you hold in your own name at that member. |
| In a pooled account in the fintech’s own name | CDIC treats the fintech as the only depositor. Coverage applies to the fintech, not to you. If the fintech fails, CDIC says it would not play a role. |
You keep $60,000 in savings in your own name at a CDIC member. You also have $50,000 in an app that holds client money in a properly disclosed trust account at the same member. CDIC protects trust deposits separately from your own-name deposits, so both amounts can be covered. If the app instead pooled the $50,000 in its own name, that $50,000 would not be covered for you at all.
What about payment apps and prepaid cards?
Many payment apps are payment service providers under the Retail Payment Activities Act. The Bank of Canada says they must register with it, and since September 8, 2025 they must have frameworks to safeguard users’ funds. But the Bank also says it does not handle disputes between a provider and its users, fee complaints or privacy complaints. Its focus is supervising providers, not direct consumer protection. You can look a provider up in the Bank of Canada registry.
For prepaid cards, FCAC says CDIC coverage may apply only when the funds are held as eligible deposits at a CDIC member. The card’s disclosure must say so if the funds are not insured by CDIC, and issuers must disclose key information, including fees.
Who do I complain to about a fintech?
Start with the company itself. FCAC supervises federally regulated financial entities such as banks, the external complaints body and payment card network operators, so its rules may not reach an app that is none of these. For payment providers, the Bank of Canada suggests going to the provider first, then to a provincial or federal consumer protection agency. Ask any app, before you sign up, which complaint body it belongs to. If your issue involves a bank, see how to make a bank complaint.
Red flags
- “CDIC member” claims by a company that isn’t one. CDIC’s Deposit Insurance Information By-law prohibits false, misleading or deceptive claims about being a CDIC member. CDIC asks people to report suspected misrepresentation to info@cdic.ca.
- “Insured” with no detail. Ask: insured by whom, up to how much, and is the money in my name, in trust for me, or pooled?
- No named partner. If the app won’t say which institution holds your money, you can’t check the CDIC member list.
- Coverage that needs an opt-in you skipped. Some apps only place money as an eligible deposit after you turn on a feature. Read the terms.
Before you move money into an app
- Find the partner
Look in the app’s terms or deposit-protection page for the institution that holds client money. - Check the partner
Confirm it is on the CDIC member list. - Ask CDIC’s three questions
Is my money held by a CDIC member? How is it placed there? How much of it is protected? - Add up your exposure
Total what you hold at that partner, directly and through apps, and run it through the deposit insurance calculator. - Keep a backup
Keep enough for a month of bills at a bank or credit union in your own name, in case the app has an outage or shuts down.
Are any fintechs becoming banks?
KOHO published notice in January 2024 that it intended to apply for a bank charter. As of October 2026 we found no approval in the Canada Gazette, and none of the three apps above appears on OSFI’s list of banks.
The app is the window; the partner is the vault. Look up the vault.
Frequently asked questions
Is Wealthsimple a bank?
No. Wealthsimple says it is not a bank or CDIC member; it holds chequing balances in trust at CDIC member institutions.
Is KOHO CDIC insured?
KOHO is not a CDIC member. It says eligible funds held with Peoples Trust can be CDIC-protected up to $100,000 once you opt in to Earn Interest.
Is Neo Financial a bank?
No. Neo describes itself as a fintech company that offers accounts through partner CDIC member institutions.
Are fintech apps CDIC insured?
Fintechs themselves are not CDIC members. Your money can be protected only if the app places it as an eligible deposit at a CDIC member, in an account in your name or in a trust account naming you as beneficiary.
Does Bank of Canada supervision mean my money in a payment app is insured?
No. Since September 8, 2025, registered payment providers must have frameworks to safeguard users’ funds, but the Bank of Canada says it doesn’t offer broader consumer protection or resolve disputes. That is different from deposit insurance.
What happens if a fintech fails and my money was pooled in its name?
CDIC says that when an account is in the fintech’s name, the fintech is the only depositor, and if the fintech fails CDIC would not play a role.
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