Our Disclosure

The content on this website includes links to our partners and we may receive compensation when you sign up, at no cost to you. This may impact which products or services we write about and where and how they appear on the site. It does not affect the objectivity of our evaluations or reviews. Read our disclosure.

EQ Bank vs. Neo Financial 2024

Updated:

Fact Checked

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

FeaturesEQ BankNeo Financial
Monthly feeNoneNone (optional payment for perks)
Savings rate2.50% to 4.00%*1.00% to 4.00%*
Free Interac e-TransfersIncludedIncluded
Bill paymentsFreeFree
Credit CardNoYes
Prepaid CardYesYes
Mobile cheque depositsYesNo
Mobile AppYesYes
Other servicesUSD account, GICs, global money transferMortgages and investments
Learn moreVisit EQ BankVisit 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 0.50% to 5.00% cash back for the free account. 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

EQ Bank Personal Account

eqbanklogotransparent

Earn up to 4.00% interest

No monthly account fees or minimum balance

Unlimited debit transactions and e-Transfers

Free cashback card & no ATM fees

Supports mobile cheque deposits

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 3%. 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. Prepaid Card: Earn 0.50% cash back on all purchases using the EQ Bank Mastercard. It also waives FX and ATM fees.

7. 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 1.00% on your deposit. It has no monthly fees, and you get 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 up to 5% 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.

Neo Money Account

neo logo

Unlimited 5% average cash back

No monthly fees + $20 bonus

1.00% non-promo interest rate paid on balance

Unlimited free transactions

Get a Mastercard for payments online and ATMs

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 Credit card

Rewards: Average of 5% cash back at 12,000+ partners and a guaranteed minimum of 0.50% cash back across all purchases

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

Interest rates: 19.99% – 29.99% on purchases; 22.99% – 31.99% for cash advances.

Annual fee: $0

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.

Neo Secured Credit

Rewards: Earn an average of 5% real cash back on purchases.

Welcome offer: Up to 15% cashback on your first-time purchases, plus a $25 welcome bonus.

Interest rates: 19.99% – 29.99% for purchases; 22.99% – 31.99% for cash advances.

Annual fee: $0

Credit limit: Starts at $50.

Credit score required: Poor or bad credit score.

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 Savings Plus Account with a Neo Financial cash back credit card to get the best of both worlds.

Related:

Top Banking Offers for May

Stop paying monthly fees with a free chequing account + $400 bonus

Get $400 cash bonus when you direct deposit $100 for three months.

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

No monthly account or transaction fees.

Get a high interest rate on your savings (6.00% interest rate offer).

Get the TOP spending and savings account with 5% rewards and $20 bonus

Instant approval and a $20 welcome bonus when you make your first purchase.

Earn up to 5% unlimited cashback on purchases while paying no fees!*

Earn 5.00% interest on your entire account balance.

Free debits, e-Transfers, bill payments, budgeting app, and access to credit building.

Earn a regular 4.00% interest on your savings account

Earn up to 4.00% interest on every dollar when you set up a direct deposit.

Free access to a hybrid account with unlimited transactions & e-transfers.

Access to a prepaid card that pays 0.5% cashback on all purchases.

No monthly or annual account fees; free ATMs in Canada.

Author

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

Enoch Omololu, personal finance expert, author, and founder of Savvy New Canadians, has written about money matters for over 10 years. Enoch has an MSc (Econ) degree in Finance and Investment Management from the University of Aberdeen Business School and has completed the Canadian Securities Course. His expertise has been highlighted in major publications like Forbes, Globe and Mail, Business Insider, CBC News, Toronto Star, Financial Post, CTV News, TD Direct Investing, Canadian Securities Exchange, and many others. Enoch is passionate about helping others win with their finances and recently created a practical investing course for beginners. You can read his full author bio.

About Savvy New Canadians

Savvy New Canadians is one of Canada's top personal finance platforms. Millions of Canadians use our site each year to learn how to save for retirement, invest smartly, maximize rewards, and earn extra cash. We have been featured in prominent finance media, including Forbes, Globe and Mail, Business Insider, CBC, MSN, Wealthsimple, and TD Direct Investing. Learn more about Savvy New Canadians.

Free financial education

Expert advice

Free resources

Detailed guides

Leave a comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.