In addition to its recently introduced Neo Card, a cash back credit card, Neo Financial also offers a prepaid card and a dedicated high-interest savings account.
The Neo Everyday Account (formerly Neo Money Account) offers 0.01% interest on your balance, which is much higher than what you get from a chequing account at any traditional bank.
It also works like a hybrid account (i.e. chequing + savings), and this Neo Money review covers its features and competitors.
Neo Everyday Account 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
- $20 Bonus
- Competitive interest rate
- CDIC insurance
- Free transactions
- No minimum balance
- Free prepaid Mastercard
Cons
- Does not fully replace a traditional bank
Neo Everyday Account Benefits
1. Pays Interest: Compared to the 0% rates offered by big banks on your chequing, you earn interest 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 an average of 5% cash back at thousands of partners.
Downsides of a Neo Everyday 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.
Is the Neo Everyday Account Safe?
Your Neo Everyday 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. Neo HISA
Neo Financial now has a dedicated high interest savings account that offers a higher rate on your savings. You can combine the Neo HISA with Neo Money and get the best of both worlds: cash back on purchases and up to 2.50% interest.
Neo Savings Account
2.50% non-promo interest rate
No monthly fees
Unlimited free transactions
Access to a no-annual-fee credit card
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 up to 3.50%.
EQ Bank Personal Account
Earn up to 3.50% interest (non-promo)
No monthly account fees or minimum balance
Free unlimited debit transactions and e-Transfers
Free cashback Mastercard & no ATM fees in Canada
Access to investing, mortgages, FX transfers, USD accounts, GICs
Supports mobile cheque deposits
Neo Money vs. KOHO Earn Interest
KOHO is a financial technology company offering a cashback prepaid card, savings account, and credit building service.
With a KOHO Essential account, you get a prepaid Mastercard that earns up to 5% cash back, plus access to unlimited debit transactions and eTransfers. You also earn 5% interest on your entire balance.
KOHO Prepaid Mastercard
Rewards: Earn 1% cash back on groceries and transportation, up to 5% unlimited cash back at partner stores in Canada. Get up to 4% interest on your entire balance. Users also get access to a free budgeting app, 0% APR cash advances, low cost international money transfers, and free credit score checks.
Welcome offer: $40 sign up bonus after first purchase (use GETCASH promo code during sign-up)
Interest rate fee: N/A
Annual fee: $0*
Here’s how the three financial platforms compare:
| Features | Neo Money Account | EQ Bank Savings Plus | KOHO Earn Interest |
|---|---|---|---|
| Savings rate | 0.01% | Up to 3.50% | 4.00% |
| Monthly fee | $0 | $0 | $0* |
| Cash back | Average of 5% at over 12,000 locations | 0.50% using the EQ Bank card | 1% on gas, restaurants and transportation; up to 5% cash back at partners |
| 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 and credit building |
| Minimum balance | $0 | $0 | $0 |
| Mobile cheque deposits | No | Yes | No |
| Debit card | Yes – Neo Money card | Yes – EQ Bank Card | Yes – KOHO Mastercard |
| Offers a credit card? | Yes | No | No |
| Paper cheques | No | No | No |
| Investments | No | GICs | No |
| Learn more | Visit Neo Financial | Visit EQ Bank | Visit KOHO |
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?
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.
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.