EQ Bank vs. Neo Financial 2024

EQ Bank and Neo Financial are both “neobanks” 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.

Neo vs. EQ Bank Comparison

Features	EQ Bank	Neo Financial
Monthly fee	None	Optional payment for extra perks
Savings rate	2.50% to 4.25%*	0.1% to 4.00%*
Free Interac e-Transfers	Included	Included
Bill payments	Free	Free
Credit Card	No	Yes
Prepaid Card	Yes	Yes
Mobile cheque deposits	Yes	No
Mobile App	Yes	Yes
Other services	USD account, GICs, global money transfer	Mortgages and investments
Learn more	Visit EQ Bank	Visit Neo Financial

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 two credit cards (Neo Credit and Neo Secured Credit), while EQ Bank hasn’t entered the credit card business.

Prepaid Card: The EQ Bank Card pays 0.50% cash back on all purchases and has no fees. It also waives FX fees. The Neo Money Card pays 0.10% cash back for the free account (higher at some retailers). Both cards can be used for ATM withdrawals (EQ Bank waives the ATM fees).

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.

EQ Bank Overview

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 $63 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 Personal Account (formerly Savings Plus) 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

2. Notice Savings Account: For even higher interest rates on your savings, you can consider the new EQ Bank Notice Savings Account, which pays up to 4.25%, depending on the withdrawal notice period you choose. Check out our review.

3. 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.

4. 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.

5. UD Dollar Account: This account offers the highest interest rate on USD deposits I could find as of this writing at 2.75%. 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.

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

7. Prepaid Card: Earn 0.50% cash back on all purchases using the EQ Bank Mastercard. It also waives FX and ATM fees.

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

Get more details about EQ Bank in this detailed review.

Neo Financial Overview

Neo Financial is a new financial technology company that offers savings accounts, credit cards, mortgages, and investments.

1. Neo Money Account: Offered in partnership with Concentra Bank, a Neo Money Account pays 0.10% on your deposit. It has no monthly fees and unlimited free transactions (bill payments and Interac e-Transfers).

You can request a Neo Money card for your account and use it for online and in-store payments. This card pays cash back on your spending.

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

2. Neo Credit Card: The Neo Card is a cashback credit card that rewards you with cash back when you spend. You earn up to 5% cash back at some retail stores.

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.

3. Neo Secured Credit: If you want a guaranteed approval credit card, apply for the Neo Secured Credit Card. It only requires a minimum security deposit of $50.

Like its regular alternative, you earn up to 5% cash back.

EQ Bank vs Neo Financial: Conclusion

If you want 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 Personal Account with a Neo Financial cash back credit card to get the best of both worlds.

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