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.
Neo Money Review Summary
Neo Financial Savings Account Review
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Ease of use
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Interest rates
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Fees
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Minimum balance
Overall
Summary
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. If you want to earn higher, non-promotional interest on your deposits, a Neo Money account may suit your needs.
This Neo Financial Money Account Review covers its high-interest rate, features, competitors, and more.
Pros
- $5 Bonus
- Competitive interest rate
- CDIC insurance
- Free transactions
- No minimum balance
- Free prepaid Mastercard
Cons
- Does not fully replace a traditional bank
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.
5. Neo Money Card: Use this prepaid card for online and in-store purchases and earn up to 5% cash back at thousands of partners.
Earn 2.25% Interest on Your Savings ($5 bonus).
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.
While Neo Financial now offers a prepaid card (Neo Money Card) you can use for online and in-store purchases, it does not include free ATM withdrawals.
Neo Savings is not yet available in Quebec.
Is Neo Money (formerly Neo Savings) Safe?
Your Neo Money Account is held at Concentra Bank, a Schedule I bank with more than $36 billion in assets under administration.
Concentra Bank 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 transportation; 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 |
| Minimum balance | $0 | $0 | $0 |
| Mobile cheque deposits | No | Yes | No |
| Debit card | Yes – Neo Money card | Yes – EQ Bank Card | No |
| Offers a credit card? | Yes | No | Prepaid Mastercard |
| Paper cheques | No | No | No |
| Investments | No | GICs | No |
| Learn more | Visit Neo Financial | Visit EQ Bank | Visit KOHO |
One fault with NEO. If you get a direct deposit from the Canadian government, like a GST refund, income tax refund, etc., they will put a 2-3 business day hold on it. If it is a direct deposit from any other company, they will put a 5 business day hold on it. Never heard of a bank putting holds on direct deposits.
Have the neo financial cash back credit card and it is great. The iPhone app is well made and works great to find some good local deals. This is my go-to cashback card for dining and amazon purchases, something that was missing from a lot of other banks’ credit cards.
If you close the savings account and then decide to re-open again at a later point -good luck. Not happening!
Did they do a credit check while opening the savings account?