The Neo Money Account from Neo Financial combines some of the best features of savings and chequing accounts.
Accountholders earn high-interest rates on their balance while paying $0 fees for transactions.
Like its close competitors, EQ Bank, KOHO, and Tangerine, Neo Money is one of the best online financial accounts you can open in Canada.
Read on to learn about its features, pros, and cons.
Neo Money Account Overview
Neo Money is a high-interest savings account that also includes features like:
- Unlimited transactions, including bill payments, Interac e-Transfers, and deposits
- No monthly account fees
- No minimum balance requirement
Interest earned is calculated daily on your closing balance and is paid out monthly.
The Neo Savings account interest rate as of this writing is 2.25%.
Neo Money Account
Unlimited 5% average cash back
No monthly fees + $20 bonus
2.25% non-promo interest rate paid on balance
Unlimited free transactions
Get a Mastercard for payments online and ATMs
Access to a no-annual-fee credit card
How To Open a Neo Money Account
You can open a new Neo Money Account by visiting their website. Provide your email and a password to set up your account.
To fund your account, you can send an Interac e-Transfer from your existing bank accounts at other financial institutions.
You can also add a direct deposit, such as your paycheque.
Pros and Cons of the Neo Money Account
The benefits and downsides of a Neo Money Account are:
Pros:
- $20 sign up bonus after $50 deposit
- Earn high-interest rates that are non-promotional
- Includes unlimited free transactions
- No monthly fees
- No minimum balance requirement
- Your deposits are eligible for CDIC deposit protection
- Access to a no-annual-fee credit card
Cons:
- Neo Money does not support mobile cheque deposits
- Online bank with no physical branches
- Not a full-fledged chequing account
Neo Financial High Interest Savings Account
Neo Financial now offers a high interest savings account. You can open this account alongside the Neo Money account to get the best of both worlds: high interest savings and free transactions.
Neo Savings Account
4.00% non-promo interest rate
No monthly fees
Unlimited free transactions
Access to a no-annual-fee credit card
Is Neo Financial Safe and Legit?
Yes, Neo Financial is a legitimate financial technology company founded by some of the same people who established the SkipTheDishes food delivery platform.
It has over 650 employees and has raised more than $299 million. The company has partnerships with other Canadian banks, such as ATB Financial and Concentra.
Customer deposits in the Neo Money account are safe and protected against insolvency through CDIC deposit insurance for up to $100,000 per depositor per category. This amount is combined with eligible deposits you have at Concentra Bank.
Neo Money Account Alternatives
Canadian online banks tend to offer better savings rates compared to big banks.
Some of the highest savings rates are from Neo Financial, EQ Bank, Tangerine, and KOHO.
Neo Money vs EQ Bank
The EQ Bank Savings Plus Account pays a consistently high-interest rate on your deposit and also offers these perks for free:
- Unlimited transactions, including Interac e-Transfers
- Mobile cheque deposits
EQ Bank clients can open a general savings account or opt for TFSA, RSP, GIC, and USD accounts.
EQ Bank Personal Account
Up to 4.00%* interest rate
Unlimited debits and bill payments
Unlimited Interac e-Transfers
No monthly account fees
Neo Money vs KOHO
KOHO is a free spending and savings account that offers up to 5% cash back on purchases
Users get a budgeting app and access to a prepaid Mastercard. When you set up a direct deposit to fund your KOHO account, you earn interest on your entire balance.
KOHO Prepaid Mastercard
$20 welcome bonus after first purchase (use CASHBACK promo code during sign-up)
$0 monthly fee
Earn up to 5% unlimited cash back
Get 3% savings interest on your balance
Unlimited Interac e-Transfers and debit transactions
Free budgeting app and access to credit building
Neo Money vs Tangerine
Owned by Scotiabank, Tangerine is one of the most popular digital banks in Canada.
Its no-fee chequing account includes unlimited transactions, and you can also apply for a no-annual-fee Tangerine cash back credit card and earn up to 2% cash back on purchases.
Learn more about Tangerine in this review.
FAQs
Neo Financial does not offer a tax-free savings account (TFSA).
Neo Financial does not offer Guaranteed Investment Certificates (GICs). Find the best GIC rates here.
A Neo Money account is like a typical savings account, and you earn interest on the funds you deposit in it.
Neo Financial is great for saving money and earning cash back when you pay with your Neo credit card.
Related:
I think the attractive thing about Neo is that they combined savings and chequing account features into Neo Money and debit + credit in Neo Mastercard (because payments from Neo Money to Neo Mastercard are instantly processed)