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EQ Bank vs. Neo Financial 2023

EQ Bank and Neo Financial are both “neobanks” that are making waves in the banking industry with their innovative financial products.

This EQ Bank vs. Neo comparison covers their product offerings and what you need to know.

What is EQ Bank?

EQ Bank is a digital bank owned by Equitable Bank. It was established in 2016 and has more than $7 billion in deposits.

Its parent, Equitable Bank, was founded in 1970 and has over $42 billion in assets.

EQ Bank is popularly known for providing one of the best savings rates in Canada.

Below are the financial products it offers:

1. High-Interest Savings Account: The EQ Bank Savings Plus Account pays a high-interest rate while giving you access to some chequing account features and benefits.

  • Earn high interest (up to 150x more than other banks)
  • No monthly account fees
  • Free unlimited transactions, including bill payments and Interac e-Transfers
  • Access to joint accounts
  • Eligibility for CDIC protection up to $100,000
  • Free mobile cheque deposits

EQ Bank Savings Plus Account

EQ Bank tfsa.

2.50%* non-promotional interest rate

Unlimited debits and bill payments

Unlimited Interac e-Transfers

No monthly account fees

2. TFSA Savings Account: You can save and earn tax-free income using an EQ Bank TFSA. This account also earns high-interest rates, has no monthly fees, and you get unlimited withdrawals.

3. RSP Savings Account: Save for retirement using the EQ Bank RSP Account and earn a high-interest rate on every dollar in a tax-sheltered environment. You can easily set up regular automated contributions from your chequing account at another financial institution.

4. UD Dollar Account: This account offers the highest interest rate on USD deposits I could find as of this writing at 2%. The EQ Bank US Dollar Account has no monthly fees. Using the EQ Bank app, you can send money abroad via their partnership with Wise.

5. Guaranteed Investment Certificates: EQ Bank customers can invest in registered and non-registered accounts using GICs of various terms and rates.

6. Mortgage Marketplace: You can compare mortgage loan products from various lenders using EQ Bank.

Get more details about EQ Bank in this detailed review.

What is Neo Financial?

Neo Financial is a new financial technology company that offers a savings account and a credit card.

1. Neo Money Account: Offered in partnership with Concentra Bank, a Neo Money Account (formerly Neo Savings) pays 2.25% on your deposit. It has no monthly fees, and you get unlimited free transactions (bill payments and Interac e-Transfers).

Since Concentra Bank is a CDIC member institution, your combined deposit at Neo and Concentra are protected up to $100,000 per insured category.

Neo Money Account

neo logo

2.25% non-promo interest rate

No monthly fees

Unlimited free transactions

Access to a no-annual-fee credit card

2. Neo Credit Card: The Neo Card is a cashback credit card that rewards you with cash back when you spend. You earn a minimum of 0.50% at non-partner retailers and up to 5% cash back at 10,000 locations.

If you carry a balance, Neo Credit Card charges 19.99% to 26.99% interest on purchases and 22.99% to 28.99% interest on cash advances.

Neo Mastercard (Standard)

Rewards: Average of 5% cash back at 10,000+ partners and a minimum of 0.50% cash back across all purchases

Welcome offer: Get 15% cash back on your first purchases, plus a $25 welcome cash bonus.

Interest rates: 19.99% – 26.99% on purchases; 22.99% – 28.99% for cash advances.

Annual fee: $0

Neo vs. EQ Bank Comparison

Here’s how they compare:

Savings Interest: EQ Bank and Neo offer some of the best savings rates. Both savings accounts have no monthly fees, and you get unlimited transactions.

In addition, EQ Bank offers savings accounts for RRSPs and TFSAs. Its savings account also supports mobile cheque deposits and EQ-to-EQ transfers.

Credit Card: Neo has a credit card, while EQ Bank hasn’t entered the credit card business.

US Dollar Account: EQ Bank’s US$ savings account offers a great way to grow your USD. Compared to 0.01% at some big banks, you earn a much higher interest rate. Neo Financial does not have a USD savings account.

Guaranteed Investment Certificates (GICs):  EQ Bank clients can buy GICs for registered and non-registered accounts. Neo offers investments via its robo-advisor service.

Convenience: Neo and EQ Bank are 100% online and do not have physical branches you can walk into.

If you want to do most of your banking with a digital bank, EQ Bank offers more options, and you can deposit cheques via its app in your EQ Bank Savings Plus Account.

Referral Program: EQ Bank has a referral program that pays referrers up to $500 maximum and referees $20 when they open an account. Neo also has a referral program ($25 bonus when you get the credit card).

Fees: EQ Bank and Neo Money accounts do not have a fee.

Are they safe? Deposits at Neo Financial and EQ Bank are eligible for Canada Deposit Insurance Corporation insurance. Note that your eligible deposits at Neo and Concentra Bank are combined.

FeaturesEQ BankNeo Financial
Monthly feeNoneNone (optional payment for perks)
Savings rate2.50% to 3.00%*2.25%*
Free Interac e-TransfersIncludedIncluded
Bill paymentsFreeFree
Credit CardNoYes
Mobile cheque depositsYesNo
Mobile AppYesYes
Other servicesUSD account, GICs, global money transferN/A
Learn moreVisit EQ BankVisit Neo Financial

EQ Bank vs Neo Financial: Conclusion

If you are looking to save money and invest in TFSA or RSP accounts and want some flexibility with money transfers, EQ Bank is the better choice.

You can combine your EQ Bank Savings Plus Account with a Neo Financial cash back credit card to get the best of both worlds.

Related:

Top Banking Offers in January

Get a top-rated chequing account and up to a $400 bonus

Unlimited debits and Interac e-Transfer transactions.

Monthly account fee is waived if eligible (and 5 ATM fees rebated/mo.).

Get up to $400 cash bonus when you meet minimum requirements.

Access a high-interest savings account.

Get a free chequing account and a $350 cash bonus

Unlimited debits, online bill payments and Interac e-Transfer transactions.

No monthly account or transaction fees.

$350 cash bonus when you deposit $100 for 3 months.

Get a high-interest rate on your savings (5.00% limited-time interest rate offer).

Best no-fee cashback credit card with a $150 bonus

Earn 2% unlimited cash back in three spending categories - no annual fees!

Get a $150 welcome bonus with $1,000 spending in first 2 months.

0.5% unlimited cash back on all other purchases.

1.95% low-interest balance transfer rate and insurance coverage benefits.

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Author

Gravatar for Enoch Omololu, MSc (Econ)
Enoch Omololu, MSc (Econ)

Enoch Omololu is a personal finance expert and a veterinarian. He has a master’s degree in Finance and Investment Management from the University of Aberdeen Business School (Scotland) and has completed several courses and certificates in finance, including the Canadian Securities Course. He also has an MSc. in Agricultural Economics from the University of Manitoba and a Doctor of Veterinary Medicine degree from the University of Ibadan. Enoch is passionate about helping others win with their finances and has been writing about money matters for over a decade. He has been featured or quoted in The Globe and Mail, Winnipeg Free Press, Wealthsimple, CBC News, Financial Post, Toronto Star, CTV News, Canadian Securities Exchange, Credit Canada, National Post, and many other personal finance publications. You can learn more about him on the About Page.

His top investment tools include Wealthsimple and Questrade. He earns cash back on purchases using KOHO, monitors his credit score for free using Borrowell, and earns interest on savings through EQ Bank.

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