Neo Financial, founded in 2019 by the entrepreneurs behind SkipTheDishes, is a Canadian fintech company aiming to disrupt traditional banking. It first gained attention with the Neo Mastercard, a cashback credit card offering strong everyday rewards.
Since then, Neo has expanded its lineup to include products like the Neo Savings account. With rates comparable to big banks, the Neo Savings account helps Canadians grow their savings faster and reach financial goals more efficiently.
Our Verdict Of The Neo Savings Account
| Who is the Neo Savings Account best for? | The Neo Savings account is best suited for Canadians looking to earn higher interest returns on their savings deposits.It’s a great option for goals like building an emergency fund, saving for a home down payment, or stashing away spare cash. |
| What we like about the Neo Savings Account | – Up to 3% interest rate. – Interest paid monthly. – No fees or minimum balances. – Up to 10 customizable accounts. |
| What we don’t like about the Neo Savings Account | – No debit card or bill pay functions without opening a Neo Everyday account. – Like all financial institutions, interest rates can change at any time. |
What Is Neo’s Savings Account?
The Neo Savings account is an excellent option for individuals seeking higher interest returns on their savings. With an impressive rate of up to 3%, it ranks among the most competitive rates offered in the market presently. What makes it particularly appealing is the absence of fees, minimum balance requirements, or complex conditions to access this high rate.
Additionally, you can open up to 10 separate accounts for different savings goals. You can personalize accounts by naming them, setting specific targets, and tracking your progress toward those goals.
This account is perfect for goals like:
- Building an emergency fund
- Saving for a down payment
- Putting away funds for a big purchase like a car or vacation
- Parking cash from an inheritance/gift temporarily
- Stashing away extra income
Neo Savings Account: Snapshot
| Features | Details |
| Interest Rate | Up to 3% interest earned on deposits: – 2.25% on deposits up to $4,999.99 – 2.5% on deposits of $5,000 – $19,999.99 – 3.0% on deposits of $20,000+ |
| Minimum Balance | $0 |
| Monthly Fees | $0 |
| CDIC Insurance Coverage | Deposits eligible for CDIC protection up to $100,000¹ |
| Integration | Seamlessly integrates with Neo Everyday account |
| Account Management | Easy online management through web and mobile app |
| Multiple Savings Accounts | Up to 10 free customizable savings accounts for segregating funds |
| Savings Goals | Set customized savings goals and track progress |
| Transfers | Instant and free transfers between Neo accounts |
| Interest Comparison | Offers significantly higher interest compared to big banks |
Neo Everyday Account Vs. Neo Savings Account: What’s The Difference?
The Neo Everyday account is for everyday banking and spending, while the Neo Savings account is ideal for pure savings and higher returns. Here’s a side-by-side comparison of each account type:
| Neo Everyday Account | Neo Savings Account | |
| Purpose | Hybrid account (chequing + savings) | Dedicated savings account |
| Interest Rate | 0.1% | High interest up to 3% |
| Monthly Fees | $0 | $0 |
| Transactions | Unlimited everyday transactions (like a chequing account) | Primarily for saving; limited transactional use |
How To Open A Neo Savings Account
Opening a Neo Savings account takes just a few minutes and can be done directly from the Neo website or mobile app. Since Neo is an online institution, you won’t need to visit a branch or fill out paper forms.
To qualify for an account, you must be a Canadian resident with a Canadian photo ID and phone number. Also, having a smartphone or webcam for identity verification will be an asset.
Here is the simple process:
- The process starts with creating a Neo profile. You can skip to step three if you already have one.
- Neo will likely ask you to take a photo of yourself holding your photo ID.
- Once you have a Neo profile, you can open a savings under the accounts tab.
- Complete the additional steps to open your account.
- Make your initial deposit into the new account
- Enjoy watching your savings grow!
Once opened, you can manage your account(s) entirely through the online banking platform and mobile app. Quickly transfer funds, monitor your balance, track goals, and more. The customizable account names and icons make it easy to identify the purpose of each savings pot.
What We Like About Neo Savings Account
There are several perks that come with the Neo Savings Account:
- High Interest On Deposits: Earn up to 3% on your deposits, allowing your money to work for you.
- Interest Calculated Daily & Paid Monthly: Your savings will grow continuously and you see regular returns.
- No Minimum Balance Required: This makes the account accessible to all savers, regardless of starting amount.
- Unlimited Free Transfers Between Neo Accounts: This provides flexibility to move money instantly without extra costs.
- No Monthly Fees: Every dollar you save earns interest instead of being reduced by charges.
- Up To 10 Separate Accounts: Organize savings and divide funds into different goals, keeping financial planning simple and clear.
What We Think You Should Watch Out For
While the Neo Savings account has many benefits, there are a couple of things we think you should keep in mind:
- Limited Capabilities: The Neo Savings account is for pure savings. You must transfer money to a chequing account like the Neo Everyday account to access or spend the funds.
- Interest Rates Are Subject To Change: Neo can lower the interest rate on the account at any point. However, this risk exists at any bank.
- Dependence On Digital Access: Account management is entirely digital, which may be inconvenient for those preferring traditional in-person banking.
As long as you understand the Neo Savings account is for accumulating interest and not transactions, it offers an excellent opportunity to maximize your savings.
Is Neo Safe?
Yes, Neo Financial is a legitimate digital bank, and the Neo Savings account is safe to use. Here are some of the reasons we consider Neo to be a trustworthy place to bank:
- Deposits are held at Peoples Bank of Canada, a Schedule 1 bank
- Eligible deposits are protected by CDIC insurance up to $100,000¹
- Neo uses advanced security measures and data encryption
- Neo is transparent and discloses rates and policies
What Do Consumers Think Of Neo?
Neo Financial has earned mixed reviews. While Google reviews are positive, Trustpilot and Better Business Bureau comments criticize the lack of customer service. Overall, users highlight the great interest rates and seamless user experience as significant benefits.
| Source | Rating |
| Google Rating (based on Google Play reviews) | 4.8/5 |
| Social Media Presence | – LinkedIn: 111,000 followers – X: 2,400 followers – Facebook: 6.6K followers |
Other Neo Products
In addition to the new Neo Savings account, Neo Financial also offers several other financial products:
Neo Everyday Account
Neo’s original digital chequing and savings account provides unlimited free transactions, 0.1% interest, and comes with a free Mastercard prepaid card that earns up to 3% cashback on gas and groceries² and up to 1% everywhere else.
Neo Credit & Neo Secured Credit
The Neo Mastercard is ideal for everyday spending, with a $7.99 monthly fee and cashback on all purchases². The Secured Neo Mastercard is designed to help build credit history. It has no annual fee ($5 monthly fee), a flexible credit limit from $50 to $10,000, and guaranteed approval.
Co-Branded Credit Cards
Recently, Neo has forged partnerships introducing two new cards. The new Tims Credit Card allows you to earn up to 5 Tims Rewards Points per $1 spent on groceries, gas, transit, and more, with 15 points per $1 at Tim Hortons, all without an annual fee.
The Cathay Pacific Credit Card offers 1 Asia Mile for every $1 spent in Canada, 2 Asia Miles for international spending, 2 Asia Miles for Cathay Pacific flights, and approximately 5x Asia Miles at Neo partner merchants. Both cards offer secured versions for individuals with limited or no credit history.
Neo Invest
Neo Invest, powered by OneVest, combines digital investing with portfolio managers’ expertise, creating personalized portfolios tailored to individual goals, values, and risk tolerance. It offers diversified portfolios with up to 3x more asset classes beyond stocks and bonds, aiming for better risk-adjusted returns while actively managing and balancing investments.
Neo Mortgage
Neo Mortgage simplifies the mortgage process, using technology to improve affordability and accessibility. They provide a straightforward pre-qualification process and offer products for renewals and purchases.
How Does Neo Savings Account Compare To KOHO?
The Neo Savings Account comes out ahead when comparing interest rates. The higher rate plus goal-tracking tools make it our pick between these top options. However, you can earn a higher rate with KOHO if you’re willing to pay a $19 monthly fee.
| Features | Neo Savings Account | KOHO HISA |
| Interest Rate | Up to 3% | Up to 3.5% |
| Minimum Balance | None required | None required |
| Monthly Fees | $0 | $0 – $22/month |
| Transaction Fees | Free transfers between Neo accounts | $0 |
| Insurance | CDIC insured up to $100k | CDIC insured up to $100k |
| Goal Tracking | More robust features | Limited features |
What Are Other Alternatives To Neo’s Savings Account?
Aside from KOHO, there are some other strong Neo competitors. Namely, Simplii offers a higher interest rate for a limited promotional period (6% for five months). However, EQ Bank acts like a hybrid savings/chequing account, offering the most flexibility.
| Features | Simplii HISA | EQ Bank Personal Account |
| Interest Rate | Up to 1.5% | Up to 2.75% |
| Account Fee | $0 | $0 |
| Transaction Fee | $0 | $0 |
| Additional Features | Savings, Chequing, Credit Cards, Loans, Investments | No FX fees |
| Accessibility | Website, Mobile App | Website, Mobile App |
Final Thoughts
The Neo Savings account provides Canadians with an excellent opportunity to earn much higher interest on their deposits. The competitive 3% rate (depending on deposit amount) outpaces savings rates from many traditional banks. This account is ideal for anyone looking for a better return on their rainy day fund, down payment savings, retirement nest egg, or other savings goals.
Neo Savings Account FAQs
How is interest calculated in the Neo Savings Account?
Is there a minimum deposit or balance?
Can you manage the Neo Savings Account in the Neo app?
Is the Neo High‑Interest Savings Account still available?
¹The Neo Everyday and Neo Savings accounts are provided by Peoples Bank of Canada, a CDIC member institution, and are eligible for CDIC deposit protection. Deposits held in Neo Everyday and Neo Savings 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.
²Minimum balance in a Neo Everyday account required to earn the highest rate. Cashback earn subject to monthly maximum spend limits. Cashback may be limited and varies by perks, offer, and partner. There may be monthly limits for boosted cashback offers.
