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 Money™ account. A hybrid account where consumers can save, spend and earn interest
Let’s take a closer look at the Neo Money™ account to help you decide if this is the right place for you to park your money.
Neo Money™ Account
The Neo Money™ account is a hybrid account that serves as both a savings and a chequing account. You can save your money with a high-interest rate. And move your money around to pay bills, withdraw funds, make deposits, transfer funds, and make purchases using your Neo Money™ Card, all from one account.
Neo Financial pays out a handsome interest rate of 2.25%* on their Money™ account, which is much higher than some of the typical savings account rates offered by traditional banks and credit unions.
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.
Since the Neo Money™ account is a hybrid, there’s no need for multiple accounts. Instead, all your banking can be done in one spot.
Use Your Neo Money™ Card To Access Your Money And Earn Cashback
The Neo Money™ account also comes with a Neo Money™ card. A card that functions like a prepaid credit card that is better than a debit card. With the Neo Money™ card, you can make purchases online and in-store. Plus you can earn cashback like you would with a traditional credit card.
Neo Money™ Card Features
- Earn 2.25x interest
- No credit check needed (it’s not a credit card!)
- Get up to 15% cashback on your first-time purchases at over 10,000 Neo partners
- Enjoy an average of 5% cashback
If you already have a Neo Money™ account, you can get a Neo Money™ card by logging into your account and selecting “card” from the main menu.
Overview Of The Neo Money™ Account
|Savings interest rate
|Mobile bank to bank transfers
|Mobile cheque deposits
How To Make Deposits To Your Neo Money™ Account
While Neo Financial may have no physical branches, there are still several ways that you can deposit your funds into your Neo Money™ account:
- Direct deposit through payroll – Have your paycheques directly deposited into your Neo Money™ 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 Money™ Account
- High-interest rate on savings – Neo Financial offers one of the highest interest rates on the market, especially compared to traditional banks like TD and RBC which offer between 0.01% – 0.05% interest. With Neo Financial, you’ll earn 2.25%* interest, which is calculated daily (on your end balance) and paid monthly.
- No monthly fees – There are no monthly fees and users can make
- Neo Money™ card – Easily access the money in your Neo Money™ account, shop online and in store, and earn the same cashback rewards on your purchases that you’d earn with credit.
- Hybrid feature to be used as both a chequing and savings account – Unlike traditional savings accounts with limited transactions, the Neo Money™ 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 on the account or waive fees on the account. However, Neo Financial has eliminated this and requires no minimum balance.
- Completely virtual with no need to head to the bank – 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 Concentra Bank; a member of the CDIC institution.
Drawbacks Of The Neo Money™ 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.
- Geographical availability – Currently the Neo Money™ account is not available in Quebec.
- 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 four 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 5% cashback when they shop with KOHO partners using their KOHO account. There are no fees for the basic KOHO Easy account (users can upgrade to Essential, Extra, or Everything) or minimum balances, and like the Neo Money™ 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. Their savings account comes with an interest rate of 1.25%*. 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 Money™ 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 Money™ account to pay bills, transfer funds, or deposit money and watch it grow thanks to the high rate attached to it.
Neo Money™ Account FAQs
What’s the interest rate on Neo Money™ Account?
Is the Neo Money™ account safe?
Are there any monthly fees?
If you’re looking for an account that pays out a lot more in interest than your average bank offers, then the Neo Money™ account may be worth looking further into. Plus, the ability to use this account as a chequing account at the same time offers plenty of conveniences. And without the typical fees of the average bank account, you can keep a little more money in your pocket.
Neo MoneyTM is provided by Concentra Bank.
® 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 MoneyTM account is provided by Concentra Bank, a CDIC member institution, and is eligible for CDIC deposit protection. Deposits held in Neo MoneyTM accounts are combined with eligible deposits held at Concentra Bank, 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.