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 High-Interest 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.Learn More
Overview Of The Neo Financial High-Interest Savings Account
|Savings interest rate||1.30%|
|Mobile bank to bank transfers||Yes|
|Mobile cheque deposits||Coming soon|
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 – Have your paycheques directly deposited into your Neo Savings 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 Interact-e-transfer from another bank account you may have.
- Deposit via cheque through the Neo app (coming soon)
Benefits Of 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 – Neo Financial offers one of the highest interest rates on the market, especially compared to traditional banks like TD and RBC who offer between 0.01% – 0.05% interest. With Neo Financial, you’ll earn 1.3% interest, which is calculted daily (on your end balance) and paid monthly.
- Hybrid feature to be used as both a chequing and savings account – Unlike a traditional savings account with limited transactions, the Neo Financial savings account can be used as a chequing and savings account. Users can pay bills and send/recieve e-transfers for free.
- No monthly fees – There are no monthly fees and users can make
- No minimum balance – Many traditional savings account, 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.
- No overdraft fees – Overdraft charges is a concern for many Canadians. It can easily cost up to $45 per charge. With Neo Financial, there are no overdraft fees.
- 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 protected through Concentra Bank; a member of the CDIC institution.
Drawbacks Of Neo Financial Savings Account
Just as there are benefits, there are certain drawbacks to Neo Financial’s saving account that you should consider.
- Atm Withdrawls – Neo Financial is a digital account with no physical debit card. As such, if you often make ATM withdrawls, you’ll need a regular bank account for that.
- Geographical Availability – Currently Neo Financial is not available in Canada.
- 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.
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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 prepaid credit cards, a high-interest savings account, early payroll and a credit builder program.
Their high-interest savings account offers an interest rate of 1.20% and when you spend money through your account you can earn 0.5% cash back on your purchases. There are no fees or minimum balances and like Neo Financial, it too is CDIC insured.
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 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.
What’s the interest rate on Ne Financial’s savings account?
Is Neo Financial Savings Account Safe?
Are there any monthly fees?
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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