Neo Financial is a financial technology company that is changing how Canadians save, invest, and earn rewards with credit cards.
It is one of the neobanks we have seen challenging the traditional banking system with higher-than-average savings interest rates, no-fee cash back credit cards, and hybrid bank accounts.
This Neo Financial review covers how it works, its products and services, benefits, fees, downsides, and alternatives like KOHO and EQ Bank.
Neo Financial Overview
Neo Financial is a fintech offering savings, credit cards, and other financial products in partnership with other well-known Canadian financial institutions.
It started operations in 2019 and has offices in Calgary and Winnipeg.
So, who owns Neo Financial?
Neo Financial was founded in 2019 by two SkipTheDishes founders – Andrew Chau and Jeff Adamson, alongside Kris Read.
Since then, the company has attracted several investors, including Peter Thiel, Tobi Lutke, Golden Ventures, Maple VC, ATB Financial, and several others.
Neo Financial Accounts
Neo Financial’s line of financial products includes:
- Neo Credit
- Neo Secured Credit
- Neo Everyday Account + card
- Neo High Interest Savings account
- Neo Mortgage
- Neo Invest
It also has several products in the pipeline, including buy now pay later.
Neo Financial Credit Cards
Neo Financial offers the unsecured Neo Credit card and Neo Secured Credit for those looking to establish or rebuild their credit.
It also has a partnership with Hudson’s Bay to power the Hudson’s Bay Mastercard.
Let’s break them down.
Neo Credit card
The Neo Credit card is one of the best cash back rewards credit cards in Canada.
This no-fee credit card offers an average of 5% cash back at over 12,000 Neo partners. For your first purchases at participating retailers, the cash back rate is as high as 15%.
You can increase your cash back rates on the card and enjoy access to premium benefits by subscribing to optional Neo perks.
Combined with the Neo Financial app, you can easily track and budget your money, spend your rewards, freeze a lost card, and more.
Neo Credit card
Rewards: Average of 5% cash back at 12,000+ partners.
Welcome offer: $25 welcome cash bonus.
Interest rates: 19.99% – 29.99% on purchases; 22.99% – 31.99% for cash advances.
Annual fee: $0 to $4.99 monthly
Our readers get a $25 bonus when they sign up, and all cardholders enjoy up to 15% cash back on their first-time purchases at several participating stores.
Cash back earned can be redeemed at any time to your Neo Money account or towards your statement balance.
Neo Secured Credit Mastercard
Neo Secured Credit Card is one-of-a-kind.
Compared to the typical secured credit card with zero rewards, the Neo Secured Credit offers the following benefits:
- Average 5% cash back at over 12,000 Neo partners
- Up to 15% cashback on first-time purchase
- $25 cash bonus when you sign up
- Low $50 minimum security deposit
- Guaranteed approval regardless of your credit score
- No hard credit check
You receive a physical card and a virtual credit card you can add to your favourite payment wallet (Apple Pay or Google Pay).
Neo Secured Credit
Rewards: Earn up to 5% cash back on purchases at Neo partner stores.
Welcome offer: $25 welcome bonus.
Interest rates: 19.99% – 29.99% for purchases; 22.99% – 31.99% for cash advances.
Annual fee: $60
Credit limit: Starts at $50.
Credit score required: Poor or bad credit score.
How To Apply For Neo Financial Credit Cards
You can apply for the Neo credit cards online via these links (Neo Credit or Neo Secured Credit).
You must be a resident of Canada and the age of the majority in your province (i.e. 18 or 19 years older).
You will also need to provide a government-issued photo ID.
The Neo credit cards are issued in partnership with ATB Financial under license from Mastercard. These cards are accepted at millions of locations worldwide.
Credit Card Awards Won in 2024
Neo Everyday Account
This hybrid account combines the features of a savings and chequing account. The Neo Everyday Account pays 0.10% interest on your balance and has no monthly account fees.
It includes:
- Free bill payments and debit transactions
- Unlimited free Interac e-Transfers
- Accepts direct deposits
- Free Neo Money card with an account that earns cashback on purchases
This account includes a virtual and physical Mastercard you can use for online and in-store payments or to withdraw funds at ATMs.
The Neo Money account is offered in partnership with Concentra Bank, and your deposits qualify for CDIC insurance. Learn more in our full Neo Money guide.
Neo Money card
Rewards: Earn up to 3% cash back at Neo partners.
Welcome offer: n/a
Interest rate fee: 0%
Annual fee: $0 (no monthly fees)
Neo High Interest Savings account
The new Neo HISA pays 4.00% interest on your balance, which is one of the highest non-promotional interest rates in Canada.
This free savings account can be combined with Neo Money account and Neo credit cards for a full-service package.
Neo Savings Account
4.00% non-promo interest rate
No monthly fees
Unlimited free transactions
Access to a no-annual-fee credit card
Neo Mortgages
This digital mortgage platform can be used to obtain a new mortgage loan and also supports renewals and mortgage refinancing.
The entire application and approval process is based online.
Neo Invest
Neo Invest is another offered by Neo Financial.
This robo-advisor service provides access to professionally managed investment portfolios in partnership with OneVest.
Robo-advisors invest your money on your behalf based on your risk tolerance and investment objectives.
You simply set up pre-authorized contributions, and they divvy your funds into various asset classes using Exchange-Traded Funds (ETFs).
You can invest inside a TFSA, RRSP, or non-registered personal investment account.
Neo Rewards Program
The highlight of the Neo cards is the ability to earn unlimited cash back at Neo partners, including a whopping 15% earn rate when you make your first purchases.
Neo Rewards also include its customizable monthly subscriptions:
- Premium
- Travel
- Food and Drink
- Mobile and Personal Protection
- Mind and Body
Neo Financial Partners
Neo has over 12,000 participating retailers, brands, and stores across Canada.
A few examples of Neo partners in cities like Calgary, Winnipeg, Edmonton, Toronto, and Vancouver include:
| Five Guys | Second Cup | Well.ca |
| Boston Pizza | Montana’s | Clearly |
| Earl’s Kitchen + Bar | Hudson’s Bay | Dufresne |
| Subway | Frank and Oak | Princess Auto |
| Avis Car Rental | Nuburger | Robin’s |
| Poke Guys | EPOCH | Go Oil |
| The Pint | Fahrenheit Coffee | MPG Sports |
| EQ3 | NAPA Auto Parts | Article Furniture |
Neo Financial Fees
The Neo Money account and card have no monthly fees to worry about; the same goes for Neo Credit and Neo Secured Credit. If you opt for a perk bundle, you pay a small monthly fee.
The Neo credit cards have interest rates for purchases when you don’t pay your balance within the grace period. Interest also applies to cash advances.
For Neo Invest, you pay a 0.75% managing fee per year. This is in addition to the management Expense Ratio (MER) of 0.40% to 0.50% charged by the ETFs in your portfolio.
Is Neo Financial Legit?
Yes, Neo Financial is a legitimate financial institution operating in Canada.
It was founded by two co-founders of the food delivery service giant, SkipTheDishes, and is backed by reputable financial institutions and investors, including ATB Financial and Concentra Bank.
Is Neo Financial Safe?
Yes, Neo Financial is safe.
Your deposits in the Neo Money account and the Neo High-Interest Savings account are held by Concentra Bank and are eligible for protection by the Canada Deposit Insurance Corporation (CDIC).
The CDIC guarantees your deposits of up to $100,000 across all accounts (combined with any eligible deposit you have at Concentra Bank).
On the investment side of things, OneVest Management Inc. is a registered Portfolio Manager in all Canadian provinces and territories, and your assets are held with CI Investment Services (CIIS).
CIIS is a member of the Investment Industry Regulatory Organization of Canada (IIROC) and the Canadian Investor Protection Fund (CIPF).
CIPF membership means your assets are protected against firm insolvency for up to $1 million.
Downsides of Neo Financial
The cons of Neo Financial include:
- The purchase APR on the Neo cards is as high as 28.99% if you have a poor credit score
- The Neo Money account does not yet support mobile cheque deposits
Neo Financial Alternatives
EQ Bank
The EQ Bank Personal Account is one of the best high-interest savings accounts in Canada.
This no-fee hybrid account includes unlimited debits and bill payments, Interac e-Transfers, and mobile cheque deposits.
In addition to its standard savings account, you can open an EQ Bank TFSA, RSP, US Dollar Account, and GICs.
EQ Bank Personal Account
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
KOHO
KOHO is a top alternative to Neo Financial for cashback rewards and high-interest rates on savings.
The KOHO Essential Mastercard offers:
- Earn 5% savings interest on every dollar
- Up to 5% cash back at partner retailers
- Unlimited free bill payments
- Unlimited free Interac e-Transfers
- $20 welcome bonus
KOHO members get physical and virtual cards and a mobile app that’s great for budgeting and automated savings.
KOHO Prepaid Mastercard
Rewards: Earn 1% cash back on groceries and transportation, up to 5% unlimited cash back at partner stores in Canada. Get 5% interest on your entire balance. Users also get access to a free budgeting app, 0% APR cash advances and free credit score checks.
Welcome offer: $20 sign up bonus after first purchase (use CASHBACK promo code during sign-up)
Interest rate fee: N/A
Annual fee: $0*
Neo Financial Canada FAQs
Yes, the Neo Credit card is a Mastercard credit card that is acceptable worldwide.
No, Neo Financial is not a bank. It is a financial technology company or neobank that provides banking services through partnerships with other financial institutions such as ATB Financial and Concentra Bank.
You need a minimum credit score of 710 to 900, Good to Excellent, to qualify for the Neo Credit card. For the Neo Secured Credit card, you can qualify even if you have a poor or bad credit score rating.
Yes, you can use Neo credit cards to build your credit score. To do this, you need to pay your balances on time and limit your credit utilization to 35% or less. Neo Financial reports your credit usage and history to TransUnion.
Yes, both the Neo Credit card and Neo Secured Credit card are issued under license by Mastercard.
The Neo cards are accepted whenever Mastercard is accepted which is at millions of locations worldwide.
Neo Financial has thousands of partners across Canada, including popular brands like Earls Kitchen + Bar, Harry Rosen, Hudson’s Bay, Boston Pizza, Montana’s, and several others.
When you open an account here, you receive a $25 bonus for the credit card (limited time offer – no promo code required).
Hi Enoch:
Always enjoy your very helpful articles, newsletters.
I’m thinking of opening a Neo account. Still exploring and reading. I’m trying to find out if the Neo credit card (no-fee) charges 2.5% foreign transaction fee. The closest I could find is this document https://static.production.neofinancial.com/marketing-web/legal/en-CA/Neo+Disclosure+Statement%2C+Rate+%26+Fee+Schedule-EN.pdf
where it mentioned “Foreign Currency Conversion fee” of 2.5%
I’m not sure what that means.
I know there are no foreign transaction fees with Brim (now 1.5%), Wealthsimple or EQ cards.
Can you explain if “foreign currency conversion fee” is the same as foreign transaction fee?
Thank you
@Chris: Yes, Neo charges the 2.5% FX fee, and both terms mean the same thing. To avoid the fee, you’d have to keep another card like EQ Bank in your wallet. Another option is KOHO Extra, but it has an $84 annual fee.
After two years using Neo Financial as a savings account. I can no longer use or endorse there services. They gave me the wrong interested rate last month on there high interest e-savings account and after contacting them three times over the course a month, the “customer service” acknowledged it was the wrong amount. But did not rectify the incorrect amount nor did they change the advertised rate they are giving. They basically are doing NOTHING.
As a financial institution one of your main jobs to provide confidence in your financial product and NEO really hasn’t done that!
I echo Shelias comments
I opened their brand new Cathay card and thankfully never used it
When I tried to set up my external bank payment they were not set up with any of the major banks except BMO
2 days telling them that I cannot send a payment so please cancel the card
A promise by a manager to call me back never happened.
Oh and they still expect me to pay the membership fee for a card I never used for 12 days
I am the CEO of a successful manufacturing business and if I treated our customers this way we would deserve to loose business and so do they
Disgusted
My experience doesn’t jive with your upbeat description of NEO at all! I closed my account with NEO after unsuccessfully attempting to reach them by phone for a week. Their lines were completely unavailable at that time and their callback service did not work at all either, even after several tries. When I finally succeeded in reaching them by phone a week later and explained that I was rather alarmed by the inaccessibility of NEO, especially since it meant I couldn’t even reach them in case of emergency, such as a stolen or lost card. The NEO agent apologized but said that if I closed the account I would never be able to have a NEO card again. I replied that I really didn’t want or need a card who treated their customers this way. I emailed a complaint to them at their customer complaint address, by the way, and never heard a word back from them. This was several weeks ago. I feel a lot safer after getting rid of NEO. My other cards (one of which is also a Master card) certainly don’t treat customers like this.
@Sheila: Sorry to hear you have had a poor experience using Neo. I have had an account (card and savings) for a while without issues. The cashback rate is excellent! That said, I haven’t had a reason to contact their customer service yet for anything.