Neo Financial is one of Canada’s latest online financial institutions that offers digital financial products to make banking as convenient, streamlined, and hassle-free as possible. It was developed by the co-founders behind the SkipTheDishes empire, and based on how much SkipTheDishes has made life easier for the millions of Canadians who use the service, it’s easy to see how such conveniences could be translated into the world of banking.
In addition to Neo’s cashback rewards credit card, the company also offers the Neo Everyday account. A hybrid account where consumers can save, spend, and earn interest
Let’s take a closer look at the Neo Everyday account to help you decide if this is the right place to park your money.
Neo Everyday Account
The Neo Everyday account is a hybrid account that serves as both a savings and a chequing account. Move your money around to pay bills, withdraw, make deposits, transfer, and make purchases using your Neo Money™ card, all from one account.
Does The Neo Everyday Account Pay Interest?
Currently, Neo Everyday account holders can earn 0.1% interest on their balance. If you want to earn a higher interest rate, check out the Neo High-Interest Savings Account.
Rates are calculated daily on closing balances and are paid out monthly. Plus, all Interac® e-transfers are free and there are no monthly fees or minimum balances to maintain.
Overview Of The Neo Everyday Account
| Savings interest rate | 0.1% |
| Fee | $0 |
| Minimum balance | $0 |
| Interac® e-transfers | Free |
| Bill payments | Free |
| Mobile bank-to-bank transfers | Yes |
| Mobile cheque deposits | Coming soon |
| Paper cheques | No |
Use Your Neo Money™ Card To Access Your Money And Earn Cashback
The Neo Everyday account also comes with a Neo Money™ card. A card that functions like a prepaid credit card but is better than a debit card. With the Neo Money™ card, you can make purchases online and in-store. Plus you can earn cashback. Your cashback rate depends on the balance in your Neo Everyday account.
- Higher Neo Everyday account balance = higher cashback rate for Neo Money™ card purchases.
Here are the earn rate tiers for the Neo Money™ card:
| $0 | $1000 | $3000 | $5000 | $10,000 | |
| Gas | 1.00% | 1.50% | 1.75% | 2.00% | 3.00% |
| Groceries | 1.00% | 1.50% | 1.75% | 2.00% | 3.00% |
| Everything else | 0.00% | 0.00% | 0.50% | 0.50% | 1.00% |
If you already have a Neo Everyday account, you can get a Neo Money™ card by logging into your account and selecting “card” from the main menu.
Boost Your Neo Credit Card Cashback Rates With A Higher Balance
Just like your cashback rate increases with a higher balance in your Neo Everyday account for the Neo Money Card, the same applies to your Neo credit cards (secured and unsecured).
- Higher Neo Everyday account balance = higher cashback rate for Neo credit card purchases.
Maintaining a specific balance in your Neo Everyday account allows you to earn higher cashback rates on both Neo credit cards.
Here are your earn rate tiers for the Neo Mastercard and Secured Neo Card:
| $0 | $1000 | $3000 | $5000 | $10,000 | |
| Gas | 1.00% | 1.50% | 2.00% | 3.00% | 4.00% |
| Groceries | 1.00% | 1.50% | 2.00% | 3.00% | 4.00% |
| Everything else | 0.00% | 0.50% | 0.50% | 1.00% | 1.00% |
How To Make Deposits To Your Neo Everyday Account
While Neo Financial may have no physical branches, there are still several ways that you can deposit your funds into your Neo Everyday account:
- Direct deposit through payroll – Have your paycheques directly deposited into your Neo Everyday account.
- Transfer funds from other bank accounts – Simply link your external bank account to your Neo Financial account to withdraw and transfer funds.
- Send an Interac® e-transfer to yourself – Fund your account by sending an Interac® e-transfer from another bank account you may have.
- Deposit via cheque through the Neo app – (coming soon)
Benefits Of The Neo Everyday Account
- Earn Interest on your balance – Users can earn 0.1% on their account balance.
- No monthly fees – There are no monthly fees and users can make
- Neo Money™ card – Easily access the money in your Neo Everyday account, shop online and in-store, and earn the same cashback rewards on your purchases that you’d earn with credit.
- Higher cashback rates for Neo credit cards – Neo Everyday account holders can earn higher cashback rates on their Neo Credit card or Neo Secured card when they meet
- Hybrid account – Unlike traditional savings accounts with limited transactions, the Neo Everyday account can be used as a chequing and savings account. Users can pay bills and send/receive Interac® e-transfers for free.
- No minimum balance – Many traditional savings accounts will have a minimum balance requirement to either open the account, earn interest, or waive fees on the account. However, Neo Financial has eliminated this and requires no minimum balance.
- Completely virtual – Neo Financial is 100% online, anything you need can be accomplished through their Neo Financial app or by calling their customer service number.
- Deposits kept safe with a Schedule 1 bank – Like many big banks, Neo Financial is CDIC protected3 through Peoples Bank of Canada; a member of the CDIC institution.
Drawbacks Of The Neo Everyday Account
- ATM withdrawals – Neo Financial is a digital account with no physical debit card. As such, if you often make ATM withdrawals, you’ll need a regular bank account for that.
- Cheques – If you need cheques or deposit a lot of cheques, Neo Financial currently does not offer paper cheques, however, mobile cheque deposits are coming soon.
Neo Financial vs. KOHO
KOHO is a fintech company that was founded in Toronto in 2014. They offer Canadians innovative financial solutions that are more affordable than traditional banks. They currently offer three spending and savings accounts and a Credit Builder Program. Account holders can earn up to 5% saving interest on their entire KOHO account balance and earn up to 50% extra cashback when they shop with select KOHO partners using their KOHO account. Like the Neo Everyday account, it too is CDIC insured2.
Neo Financial vs. EQ Bank
EQ Bank is an online-only bank that offers Canadians everyday banking solutions. Their products include savings accounts, investment accounts, money transfers and mortgages. The EQ Bank Personal Account is also a hybrid account and comes with an interest rate of up to 4%. There are no monthly fees and Interac® e-transfers, electronic funds and bill payments are all free. They also have no minimum balance however, there is a cap of $200,000. Unlike Neo or KOHO, they offer mobile cheque deposits which is convenient.
How Do You Apply For The Neo Everyday Account?
You will need to download the Neo app to apply and take a selfie with a government-issued ID, such as your driver’s license or passport. Once your account has been activated, you can start using your hybrid Neo Everyday account to pay bills, transfer funds, or deposit money and watch it grow thanks to the high rate attached to it.
Final Thoughts
If you’re looking for a hybrid account that acts as a savings and chequing account without a monthly fee, the Neo Everyday account is a great option. When used with the Neo Money™ card, account holders can earn cashback on their purchases and keep a little more money in their pockets.
Neo Everyday Account FAQs
What’s the interest rate on Neo Everyday account?
Is the Neo Everyday account safe?
Are there any monthly fees?
The Neo Everyday account is provided by Peoples Bank of Canada.
® Trademark of Interac Inc. Used under license.
*Interest is calculated daily on the total closing balance and paid monthly. Rates are per annum and subject to change without notice.
2 Average based on current offers at select partners. Cashback varies per plan, offer and partner.
3 The Neo Everyday account is provided by Peoples Bank of Canada, a CDIC member institution, and is eligible for CDIC deposit protection. Deposits held in Neo Everyday accounts are combined with eligible deposits held at Peoples Bank of Canada, for up to $100,000 of deposit protection, per category, per depositor. For more information about CDIC deposit insurance, please consult CDIC’s website cdic.ca.
