In addition to its recently introduced Neo Card, a cash back credit card, Neo Financial also offers a high-interest savings account.
The Neo Money Account (formerly Neo Savings Account) gives you 2.25% interest on your balance which is a lot higher than what you get from most traditional banks these days…up to 225x more interest!
It also works like a hybrid account (i.e. chequing + savings), and this Neo Money review covers its features and competitors.
What is Neo Financial?
Neo Financial is a startup financial technology company founded in 2019 by two co-founders of Skip The Dishes (Andrew Chau and Jeff Adamson) and Kris Read.
It offers a cash back credit card (Neo Card), savings account (Neo Money), and other financial products.
Neo Financial Money Account Benefits
1. High-Interest Rate: Compared to low rates offered by some big banks, you earn a 2.25% interest rate with Neo Money. Interest is calculated daily on your closing balance, and it is paid out monthly.
2. Free Transactions: Similar to a chequing account, you can easily pay your bills, transfer funds to friends, make deposits, and use Interac e-Transfers for free.
3. No Minimum Deposits: There is no minimum deposit or balance to enjoy the high-interest rate or no-monthly fee benefit.
4. CDIC Insurance: Your funds are held by Concentra Bank and are eligible for deposit insurance protection up to $100,000.
Earn 2.25% Interest on Your Savings ($5 bonus and up to 225x some other banks).
Downsides of a Neo Money Account
If you want to replace your banking entirely, this account does not offer paper cheques, and mobile cheque deposits are not yet possible.
Neo Financial does not offer a debit card, so you will need to have a chequing account elsewhere if you do a lot of cash transactions or withdrawals at the ATM.
Neo Savings is not yet available in Quebec.
Is Neo Money (formerly Neo Savings) Safe?
Your Neo Money Account is held at Concentra Bank, which is a Schedule I bank with more than $36 billion in assets under administration.
It is a member of the Canada Deposit Insurance Corporation, meaning your deposits are insured up to $100,000 per category and per depositor.
Neo Money vs. EQ Bank Savings
EQ Bank is another challenger bank in Canada and the direct banking division of Equitable Bank.
It offers high-interest savings (EQ Bank Savings Plus Account), TFSA, RSP, and Guaranteed Investment Certificates.
The savings interest rate at EQ Bank is currently 2.50%.
EQ Bank Savings Plus Account
2.50%* non-promotional interest rate
Unlimited debits and bill payments
Unlimited Interac e-Transfers
No monthly account fees
Neo Money vs. KOHO Earn Interest
KOHO is a financial technology company offering a cashback prepaid card, high-interest savings account (HISA), credit building service, and early payroll.
Its HISA is also known as KOHO Earn Interest and offers up to a 2.00% interest. When you use a free KOHO Mastercard prepaid card to pay for purchases, you earn up to 5% in cashback rewards.
KOHO Prepaid Mastercard
Rewards: Earn 1% cash back on groceries and bill payments; Up to 5% cashback at select partners; Earn interest on your balance*.
Welcome offer: Get a $20 bonus when you load and make your first purchase (use promo code CASHBACK during sign-up).
Interest rate fee: 0%
Annual fee: $0
Here’s how the three financial platforms compare:
|Features||Neo Money Account||EQ Bank Savings Plus||KOHO Earn Interest|
|Savings rate||2.25%||2.50%||0.50% to 2.00%|
|Monthly fee||$0||$0||$0 ($4 for KOHO Essential)|
|Free transactions||Bill payments, Interac e-Transfers, direct deposits||Bill payments, Electronic Fund Transfers, Interac e-Transfers||Bill payments and Interac e-Transfers|
|Accounts offered||General savings||General savings, TFSA, and RSP||General savings|
|Mobile cheque deposits||No||Yes||No|
|Offers a credit card?||Yes||No||Prepaid Mastercard|
|Learn more||Visit Neo Financial||Visit EQ Bank||Visit KOHO|
Have you tried one of Neo Financial’s products? Let us know what you think in the comments below.
Neo Financial Savings Account Review
Ease of use
This Neo Financial Money Account Review covers its high-interest rate, features, competitors, and more.
- Competitive interest rate
- CDIC insurance
- Free transactions
- No minimum balance
- Does not fully replace a traditional bank