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Neo Financial Savings Account Review
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Neo Financial is one of Canada’s latest online banks 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.
Neo offers a couple of banking products. In addition to its cash back rewards credit card, the digital bank also offers a high-interest savings account. Right now, there’s a waiting list to open an account. Once Neo opens in your area, you can open an account within minutes and start enjoying the perks that come with its banking products.
Let’s take a closer look at the Neo Financial savings account to help you decide if this is the right place for you to park your money.
Neo Financial Savings Account
The Neo Financial savings account is a hybrid account that serves as both a savings and a chequing account. Not only can you save your money with a high-interest rate, but you can also move your money around to pay bills, withdraw funds, make deposits, and transfer funds to other accounts with ease, all from one account.
Neo Financial pays out a handsome interest rate of 1.30% on savings accounts, which is much higher than some of the typical savings account rates offered by traditional banks and credit unions.
A higher rate will get your money to work harder for you so you can reach your financial goals sooner. Rates are calculated daily on closing balances and are paid out monthly. Plus, all Interac e-transfers and overdraft protection are free, and there are no monthly fees or minimum balances to maintain.
Since the Neo Financial savings account is a hybrid, there’s no need for multiple accounts. Instead, all your banking can be done in one spot. Further, deposits are held by Concentra Bank, which is a Schedule 1 bank in Canada.
How to Make Deposits to Your Neo Financial Savings Account
While Neo Financial may be a virtual bank with no physical branches, there are still several ways that you can deposit your funds into your Neo savings account:
- Direct deposit through payroll
- Transfer funds from other bank accounts
- Send an Interac e-transfer to yourself
- Deposit via cheque through the Neo app (coming soon)
Benefits of a Neo Financial Savings Account
There are plenty of reasons why you may want to consider joining the waiting list to open an account with Neo Financial:
- High-interest rate on savings
- Hybrid feature to be used as both a chequing and savings account
- No monthly fees
- No minimum balance
- No overdraft fees
- Completely virtual with no need to head to the bank
- Deposits kept safe with a Schedule 1 bank
Overview of Neo Financial Savings Account
|Savings interest rate||1.30%|
|Mobile bank to bank transfers||Yes|
|Mobile cheque deposits||Coming soon|
How Do You Apply For a Neo Financial Savings Account?
There is currently a waiting list to be a part of Neo Financial. You will need to join the waiting list and wait for notification when Neo launches in your area, after which you can apply.
In the meantime, you can move up a few notches on the waiting list by referring friends and family.
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 savings account to pay bills, transfer funds, or deposit money and watch it grow thanks to the high rate attached to it.
Check out our list of the best rewards credit cards in Canada.
Is Neo Financial Savings Account Safe?
Every penny you have deposited in your savings account is fully protected. Funds within a Neo Financial savings account are securely held at Concentra Bank, a Schedule A bank in Canada and CDIC member with more than $9 billion in assets. Plus, the bank is regulated by the federal government.
If you’re looking for a savings account that pays out a lot more in interest than your average bank offers, then the Neo Financial savings account may be something worth looking further into. Plus, the ability to use this account as somewhat of a chequing account at the same time offers plenty of conveniences. And without the fees that are typical of the average bank account, you can keep a little more money in your pocket.
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