One of the most common questions Canadians have before switching to an online bank is: "Is my money safe?" The short answer is yes — provided you use a bank or financial institution with proper deposit insurance. This guide explains exactly how Canadian deposit protection works and which online banks are covered.
The Canada Deposit Insurance Corporation (CDIC) is a federal Crown corporation that protects eligible deposits at member institutions in the event that a bank fails. CDIC has been operating since 1967 and has handled 43 bank failures without depositors losing a single dollar of insured deposits.
CDIC coverage is automatic — you don't apply for it. If you hold deposits at a CDIC member institution, you're covered up to the applicable limits.
CDIC insures up to $100,000 per depositor per insured category at each member institution. The insured categories are:
This means a single person could have up to $700,000+ in CDIC-insured deposits at a single institution by holding funds across multiple categories. And since the $100,000 limit applies per institution, spreading deposits across multiple CDIC members multiplies your coverage further.
EQ Bank is operated by Equitable Bank, a federally chartered Schedule I bank and CDIC member. All eligible deposits are protected up to $100,000 per category.
Tangerine Bank is a separate CDIC member institution from its parent Scotiabank. This means you can hold $100,000 insured at Tangerine and another $100,000 insured at Scotiabank simultaneously.
Simplii Financial is a division of CIBC, not a separate bank. Your Simplii deposits share the CDIC coverage limit with your CIBC deposits — they are one and the same for insurance purposes.
KOHO is not a bank itself, but your KOHO deposits are held at Peoples Bank of Canada, which is a CDIC member institution. Your KOHO balance is insured up to $100,000 — and this is a separate limit from any other bank you use, since Peoples Bank is a separate CDIC member.
Wealthsimple Cash deposits are held at one or more Canadian chartered banks that are CDIC members. Check Wealthsimple's current documentation for the specific holding banks.
Motusbank is a digital arm of Meridian Credit Union and is covered by the Deposit Insurance Corporation of Ontario (DICO), not CDIC. DICO provides unlimited deposit protection for Ontario credit union members — there is no $100,000 cap — which is actually more generous than CDIC for large deposits held in Ontario.
CDIC only covers certain deposit products. The following are typically NOT covered:
Credit unions are regulated provincially, not federally, so they are not CDIC members. Instead, each province has its own deposit protection scheme. These are generally equivalent to CDIC and in some cases more generous:
KOHO deposits are held at Peoples Bank of Canada — a CDIC member. Your money is just as safe as at any major Canadian bank. Use code 45ET55JSYA to open your free account with a bonus.
Open KOHO Free — Use Code 45ET55JSYAOnline banks in Canada are safe — as long as they're CDIC members or equivalent. EQ Bank, Tangerine, Simplii, and KOHO (via Peoples Bank) all carry CDIC protection equivalent to what you get at RBC or TD. The government guarantee is identical. "Online bank" does not mean "less safe" in Canada in 2025.