Neo Financial recently launched the Neo MoneyTM card, a prepaid card that earns high interest rates on your balance and pays cash back on your spending.
If you have been on the lookout for a Neo debit card, this prepaid card makes it easier to access the funds in your Neo Money account for everyday spending.
The New Neo Money Card
The Neo Money card functions like a prepaid card linked to your Neo MoneyTM account balance. It is the Best Prepaid Card in Canada.
After opening a Neo Money account, you can fund it using Interac® e-Transfer, direct deposit, or by linking another existing bank account.
When making payments online and in-store, you can use the Neo Money card and access the cash in your savings account without needing to manually load funds onto your card.
The Neo Money card is separate from the Neo Credit card, a rewards credit card that pays an average 5% cash back on your purchases. Plus you earn up to 15% cash back on your first-time purchases at participating retailers.
While the Neo Money card is not a credit card, it does offer the same cash back rewards as the Neo Credit card, making it a more attractive option than traditional debit cards.
How To Get a Neo Money Card
To get a Neo Money card, open a free Neo Money account. This link includes a $20 bonus when you complete your first purchase using the card.
From your account dashboard, select ‘Card’ under the main menu and order your new card. It is also immediately available for online purchases.
Benefits of Neo Money
Benefits of the Neo Money card include cash back rewards on spending and interest on your balance.
Earn a High Interest Rate on All Your Money
Every dollar in your Neo Money account earns 2.25% interest. So your deposits grow at a competitive rate every day, and you don’t have to move funds back and forth.
Think of this account as a hybrid between a chequing account with unlimited everyday transactions and a high-interest savings account (HISA).
Earn Unlimited Cashback When Paying with your Money card
Use your Neo Money card to earn the same cashback reward you’d earn with credit. Earn up to 15% cashback on first-time purchases at over 12,000 Neo partners.
Also, when using the Moneycard at over 12,000 Neo partner stores for everyday purchases, your cash back rate is an average of 5%.
You can access cash back earned anytime and apply it to your balance.
Other benefits of this card include the following:
- $20 welcome bonus.
- No monthly or annual fee.
- A credit check is not required to qualify.
- The Neo app provides real-time insights into your spending.
- Funds in your account are eligible for CDIC deposit protection (limits apply).
- Add and stack flexible monthly perks to better reward the way you spend
Downsides of the Neo Money Card
The Neo Money card and account are not available in Quebec.
Secondly, the Neo Money card does not offer free ATM withdrawals or waive foreign currency transaction fees like the EQ Bank Card.
Neo Money Card vs. Alternatives
Alternatives to the Neo Money card are the KOHO Easy Mastercard and the EQ Bank Card.
All three cards are reloadable prepaid cards you can use anywhere Mastercard is accepted. With the Neo Money card, you don’t need to preload funds as you spend money directly from your savings account.
Neo Money Card vs. KOHO Easy Mastercard
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*
KOHO Easy Mastercard offers 1% unlimited cash back on groceries, transportation, gas, and transportation expenses. It pays 5.00% interest on your balance and has no monthly fees.*
In addition, it comes with an app you can use for automated savings, budgeting, free credit score checks, and access to 0% APR cash advances.
With your standard KOHO account, you can get unlimited debit transactions, transfers, bill payments, and more. You can also add an optional credit-building service.
Neo Money Card vs. EQ Bank Card
EQ Bank Card
Rewards: Earn 0.50% cash back on all purchases and up to 4.00% savings interest on your entire balance.
Perks: Free ATM transactions in Canada, no foreign currency transaction fees abroad, and unlimited transactions.
Interest rate fee: 0%
Annual fee: $0
Like Neo Financial, EQ Bank recently introduced its EQ Bank Card, a prepaid card that’s linked to your Savings Plus Account.
The EQ Bank Card pays 0.50% cash back on all purchases, and your balance earns 2.50% interest.
This card is also unique because it can be used for free ATM withdrawals in Canada, and FX fees are waived when you pay in another currency.
The EQ Bank Card has no annual fees.
Conclusion
The new Neo Money card improves the versatility of one of Canada’s best savings accounts.
If you are looking for an alternative to your current debit card, the Neo Money card may be just what you need.
Related:
this is a question, rather than comment. I do not see anywhere information about how to put money onto the card after getting an account. I mean, can we transfer our money from a bank account to the Neo card?
Can use of this card eliminate the need to have money in a bank?
thanks,
Carolynn
@Carolynn: You can link a bank account to your Neo Money account and transfer funds to it using online banking and Interac e-Transfer. You can also set up direct deposits to this account, such as your paycheque. To a degree, the Neo Money card can replace a traditional bank account as it supports bill payments, online and in-person payments (POS, etc.). And the Neo ecosystem now includes a high interest savings account, credit cards, investments, and mortgages. Whether it can fully replace your banking needs will depend on the types of transactions you typically conduct.