EQ Bank vs. Neo Financial

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by Enoch Omololu

Published on

Advertiser Disclosure

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.

EQ Bank

EQ Bank is a digital bank owned by Equitable Bank. It was established in 2016 and has more than $6 billion in deposits.

Its parent, Equitable Bank, was founded in 1970 and has over $37 billion in assets.

EQ Bank is popularly known to provide 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 1.25%* interest (up to 125x 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. TFSA Savings Account: You can save and earn tax-free income using an EQ Bank TFSA. This account also earns 1.25%* interest, has no monthly fees, and you get unlimited withdrawals.

3. RSP Savings Account: Save for retirement using the EQ Bank RSP Account and earn 1.25%* interest on every dollar in a tax-sheltered environment. You easily can 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 1%. 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.

Visit EQ Bank

Neo Financial

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

1. Neo Savings Account: Offered in partnership with Concentra Bank, a Neo Savings Account pays 1.30% 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.

2. Neo Credit Card: The Neo Card is a cashback credit card that rewards you with cash back when you spend. Your earnings are based on your cash back reward plan as follows:

  • Standard: $0 per month fee. You earn a minimum of 1% and up to 4% cash back at select partners.
  • Plus: $2.99 per month fee. You earn a minimum of 1% cash back on all purchases and an average of 5% at select retailers.
  • Ultra: $8.99 per month fee. You earn a minimum of 1% cash back on all purchases and an average of 6% at select partners.

If you carry a balance, Neo Credit Card charges 19.99% to 24.99% interest on purchases and 21.99% to 26.99% interest on cash advances.

Visit Neo Financial

Neo vs. EQ Bank Breakdown

Here’s how they compare:

Savings Interest: Both EQ Bank and Neo offer some of the best savings rates at 1.25% and 1.30% respectively. Both savings account have no monthly fees and you get unlimited transactions.

In addition, EQ Bank offers savings accounts for RSPs 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 gotten into the credit card business yet.

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 1.00% 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 does not offer investments products at this time.

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

If you are looking 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 does not have a referral program.

Fees: EQ Bank and Neo Financial Saving Accounts do not have a fee. If you opt for the “Plus” and “Ultra” cash back rewards plans with your Neo Card, you pay a $2.99 and $8.99 monthly fee respectively.

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 for savings account; $0 – $8.99 for Neo Rewards
Savings rate1.25%*1.30%*
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

Related:

Best Banking Offers this month

1.25% interest on every dollar.

Up to 125x interest more than other banks.

Combines savings and chequing account features.

No monthly fees and free unlimited transactions and Interac e-Transfers.

Free reloadable prepaid card and budgeting app.

Up to 2% cash back on all purchases and 10% at brand partners.

1.20% savings interest on your entire account balance.

Get 3-day early access to $100 of your paycheque.

Earn 2% unlimited cash back in three spending categories.

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

0.5% unlimited cash back on all other purchases.

Low balance transfer rate and insurance coverage benefits.

Credit score updated weekly and no fees!

Get your free credit report updated weekly.

Access to DIY credit monitoring.

Over 1.5 million members in Canada.

Retirement 101 eBook - 3D

Author

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Enoch Omololu

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 has a passion for helping others win with their personal finances and has been writing about money matters for over a decade. His writing has been featured or quoted in The Globe and Mail, Winnipeg Free Press, Wealthsimple, Financial Post, Toronto Star, Credit Canada, MSN Money, National Post, CIBC, and many other personal finance publications.

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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