Best Neo Money (Savings) Accounts in 2022

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by Enoch Omololu, MSc (Econ)

Published on

Advertiser Disclosure

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 likes:

  • 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

neo logo

2.25% non-promo interest rate

No monthly fees

Unlimited free transactions

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 here.

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:

  • 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

Is Neo Financial Safe and Legit?

Yes, Neo Financial is a legitimate financial technology company founded by some of the same people that 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 the 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 Savings Plus Account

EQ Bank tfsa.

2.00%* non-promotional 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 Mastercard Prepaid Card

KOHO Mastercard Prepaid Card 2

$20 sign up bonus after first purchase (use promo code CASHBACK during signup)

Earn unlimited 0.5% to 2% cash back

1.20% savings interest on your balance

Unlimited Interac e-Transfers

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

Does Neo Financial have a TFSA?

Neo Financial does not offer a tax-free savings account (TFSA).

Does Neo Financial have GICs?

Neo Financial does not offer Guaranteed Investment Certificates (GICs). Find the best GIC rates here.

How does the Neo Money account work?

A Neo Money account is like a typical savings account, and you earn interest on the funds you deposit in it.

Is Neo Financial good?

Neo Financial is great for saving money and earning cash back when you pay with your Neo credit card.

Related:

Top Banking Offers in September

Get a free chequing account and a $350 cash bonus

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

No monthly account or transaction fees.

$350 cash bonus when you deposit $100 for 3 months.

Earn a high-interest rate on your savings (4.75% limited time interest rate offer).

Best no-fee cashback credit card with a $150 bonus

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.

1.95% low balance transfer rate and insurance coverage benefits.

Earn high interest rates on your savings at 2.25%

Earn up to 225x the interest offered by other banks.

Pay no monthly or annual banking fees.

Includes unlimited free debit transactions and Interac e-Transfers.

Get access to a no-fee credit card with up to 5% cashback.

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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. He has been featured or quoted in The Globe and Mail, Winnipeg Free Press, Wealthsimple, Financial Post, Toronto Star, CTV News, Canadian Securities Exchange, Credit Canada, 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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