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 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.
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: $8.99 per month fee. You earn a minimum of 1% cash back on all purchases and an average of 6% at select partners.
If you carry a balance, Neo Credit Card charges 19.99% to 24.99% interest on purchases and 21.99% to 26.99% interest on cash advances.
Neo vs. EQ Bank Breakdown
Here’s how they compare:
Savings Interest: Both EQ Bank and Neo offer some of the best savings rates at 1.25% and 1.30% respectively. Both savings account have no monthly fees and you get unlimited transactions.
In addition, EQ Bank offers savings accounts for RSPs and TFSAs. Its savings account also supports mobile cheque deposits and EQ to EQ transfers.
Credit Card: Neo has a credit card while EQ Bank hasn’t gotten into the credit card business yet.
US Dollar Account: EQ Bank’s US$ 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.
|Features||EQ Bank||Neo Financial|
|Monthly fee||None||None for savings account; $0 – $8.99 for Neo Rewards|
|Free Interac e-Transfers||Included||Included|
|Mobile cheque deposits||Yes||No|
|Other services||USD account, GICs, global money transfer||N/A|
|Learn more||Visit EQ Bank||Visit Neo Financial|