Neo Financial Review – Fees, Pros, Cons, and Everything In-Between

4.8/5

Are you looking for a cost-effective way of spending or the best vehicle for savings?

Neo Financial credit card or savings account could be what you need.

FinTech companies, such as Neo, are the ideal alternatives to the traditional banks in Canada.

Whether you’re concerned about cashback on purchases or high-interest rates on savings… Neo got you covered.

As you will see shortly, even as a new FinTech company in Canada, Neo is already challenging the Five Big Banks and other banks in Canada.

So in this Neo review, you will learn about all the products and programs of Neo Financial and how it compares with other banks in Canada.

What is Neo Financial?

Neo Financial is a financial institution that helps Canadian save costs on their spending and earn high interest on their savings.

Launched in September 2020, this Financial Tech company simplifies Canadians’ banking experience using advanced financial technology.

Moreover, Neo is unique because of the two products it offers. That’s Neo MasterCard and Neo Savings Account.

Subsequently, you will know about what each of these products entails and how to apply for each.

Who Owns Neo Financial?

Neo is owned by Andrew Chau and two founding members of SkipTheDishes restaurant. That’s Jeff Adamson and Kris Read.

The three established Neo in 2018 but didn’t launch it until September 2020.

However, even as a new start-up in the FinTech industry, Neo is currently performing well.

How Does Neo Financial Work?

Neo works in two ways. First, its cashback credit card rewards you when you purchase something with your Neo credit card.

So the more you use the Neo credit card, the more rewards you will receive.

Secondly, a Neo Savings account gives you a high-interest rate on your savings. Like an everyday financial institution, you can use the Neo Savings account to make deposits, pay bills, and make withdrawals.

Also, the Neo Savings account allows you to make unlimited free transactions without monthly fees.

Who Can Use Neo Financial?

Neo Card is available to all Canadians, including Québec residents. However, Neo Savings is only available to Canadians, excluding Québec residents.

The target audience for Neo Card includes tech enthusiasts, savvy spenders, credit builders, local shoppers and consolidators/automation.

On the other hand, the target audience for Neo Savings includes the nesters, savvy savers, and consolidators/automation.

To apply for a Neo account, you must have a Canadian Photo ID and reach the age of majority in your province.

Is Neo Financial Legit?

Hell yes! Neo financial is very safe to use. The CDIC insures your deposit in this Financial Tech company up to $100,000. So you have nothing to lose on Neo Financial.

Neo Financial Products

As I mentioned earlier, Neo offers two financial products. These are credit card and savings accounts.

Subsequently, we shall discuss Neo products one after the other.

1. Neo Financial MasterCard

This is a cashback credit card that rewards you for making purchases anywhere Mastercard is accepted.

You have the option to choose the cashback reward that you want. Each option has different rewards and monthly fees.

From local to national businesses, you can earn rewards when you buy anything using Neo MasterCard. This includes:

• Major gas and grocery stores
• Gyms
• Restaurants
• Coffee shops etc.

Key Features

• $0 annual fee
• 1% minimum cashback on all purchases (you can earn up to 50% cashback by making purchases at Neo partners).
• 9% – 24.99% purchase APR
• 9% – 26.99% cash advance APR
• $0 inactivity fee

Pros of Neo MasterCard

• Cash Back Rewards: Neo credit card rewards you upon buying anything with the card.
• No Fees: This account doesn’t have monthly or annual fees, helping you make the most of your money.
• Accept All Credit Scores: You can use this card even if you have a low or high credit score.

Cons of Neo MasterCard

• Restrictions: Depending on the available cashback offers, your location and buying choices… sometimes you may not earn rewards using the card.

How to Apply for the Neo Credit Card

Once you meet the requirements for using the Neo, you can apply for it.

There are two options you can use to apply for the Neo Credit Card account. These are:

1. Sign up online: Navigate to the sign-up page of Neo Financial and apply.
2. Download the app: Download the Neo Mobile App on your Android or iOS device and apply.

However, sending your application online or through the Neo Mobile App is just to determine whether you’re truly eligible.

So if you meet the requirements, you can finalize the application process.

What next? Wait for your Neo Card.

Note: Receiving your Neo Card depends on the outcome of the Neo credit check.

However, you can still get the card even with a low credit score.

2. Neo Savings Account

Neo Savings account is one of the best high-interest savings accounts in Canada.

If you’re looking for high-interest savings account with no fees and zero account minimum… a Neo Savings account is ideal.

Furthermore, Neo Savings account charges no fee for:

• Interac e-Transfers
• Bill payments
• Opening and closing account
• Inactive account
• Electronic transfers

This account will help you save a lot by converting banking fees to your savings account.

Below are the key features of this Neo Savings account:

Key Features:

• 1.30% interest rate
• No minimum deposits
• No fee
• Easy account opening process
• CDIC protection

Prosof Neo Savings Account

• High-Interest Rate: With a 1.30% interest rate, you can make the most of your money with a Neo Savings account.
• No Minimum Deposits: This account has no minimum deposits, implying that you can deposit as low as $1.
• No Fee Banking: Convert your banking fees into savings with a Neo Savings account.
• Easy Account Opening Process: Enjoy a seamless account opening experience in your hands.
• CDIC Protection: Save with no worries knowing that your deposit is protected for up to $100,000.

Cons of Neo Savings Account

• Interac e-Transfer Limit: The maximum you can transfer daily using Interac e-Transfer is $10,000.
• No Cheque: A Neo Savings account doesn’t currently have a cheque.
• Limited Access: Neo Savings account is only available in Canada at the money, excluding Quebec.

How to Open a Neo Financial Savings Account

The application process of the Neo Savings account is the same as that of the Neo MasterCard.

That is to say, once you meet the qualifications, you can open a Neo Financial Savings account in either of the following ways:

1. Sign-up through the Neo Financial website.
2. Apply through the Neo Financial Mobile App by downloading it on your Android or iOS device.

Once Neo indicates that you’re qualified, you can proceed to the next stage to complete your application.

So if you need help in the application process, call Neo at 1-855-636-2265 or email them at support@neofinancial.com.

Neo Credit Card vs Neo Savings Account: Which to Choose?

From the above discussion of Neo products, you can see that the two serve different purposes.

Neo MasterCard rewards you for using it to buy anything at major gas and grocery stores, restaurants, coffee shops etc.

On the other hand, a Neo Savings account gives you a high-interest rate for saving your money on Neo Financial.

The difference is clear. But if you ask me: which to choose?

I would say you should go with the one that fits your situation and financial goals.

If you already have a high-interest savings account, I suggest supplementing it with a Neo credit card.

But if you already have a cashback credit card with another financial institution, you can supplement it with a Neo Savings account.

However, if you don’t have any cashback credit card and a high-interest savings account, I suggest you consider both Neo MasterCard and Savings account.

Having the two accounts will help you make the most of your money with less.

Neo Rewards Program

Neo credit card has three reward programs with varying fees. These are:

1. Neo Standard

This is a free reward program with a 4% average cashback upon using a Neo credit card to buy something at Neo partners.

2. Neo Plus

Neo Plus gives you 5% average cashback upon using a Neo credit card to buy something at a partner store. This program has a monthly fee of  $2.99.

3. Neo Ultra

This program offers a 6% average cashback when using a Neo card to buy something at partner stores.

Additionally, Neo Ultra gives you 1% minimum cashback upon buying something at other stores. This program has a monthly fee of $8.99.

Neo Financial Mobile Apps

Neo Financial Mobile App is available on Google Play Store and Apple Store.

Android and iOS device users can download the app to create an account and enjoy a seamless experience.

With Neo Financial Mobile App, users can pay their bills, check cashback offers, and use Google Pay and Apple Pay for quick POS transactions.

Neo Financial Review: My 5-Star Rating

Below is how I arrived at the 4.8/5 overall rating of this Neo Financial review.

How Neo Financial Compares

As I mentioned earlier, Neo is a newcomer in the FinTech industry of Canada.

Here I compare Neo with other top Canadian FinTech companies using its cashback credit card and savings account as a point of comparison.

Neo Financial vs KOHO

KOHO is a FinTech institution that partners with Peoples Trust to provide Canadians with a cost-effective solutions

Additionally, KOHO offers a free Visa Card, which has the following features:

• 5% minimum cashback on all purchases
• $0 monthly account fees
• Joint accounts
• Budgeting tool
• Automatic savings (through Roundups)

Note

: KOHO Premium gives you 2% cashback with $9 monthly fees.

As you can see, Neo has a favourable cashback rate  (1% minimum) than KOHO (0.5% minimum).

Furthermore, the Neo Savings account has a 1.30% interest rate while KOHO Save has a 1.20% interest rate.

So if you ask me which to choose between Neo vs KOHO, I would say Neo.

Neo Financial vs EQ Bank

EQ Bank is a household name in Canada. As a division of Equitable Bank, EQ Bank has been ranked among the best savings account providers in Canada.

The EQ Bank has a 1.25% interest rate on its Savings Plus account, which is less than the Neo Savings 1.30% interest rate.

Also, the same interest 1.25% rate applies to EQ Bank registered accounts. That’s EQ Bank TFSA savings account and RSP accounts.

Here are the key features of the EQ Bank Savings Plus account:

• 25% interest
• Zero monthly fees
• No minimum balance
• Free bill payments
• CDIC protection
• No Interac e-Transfers fees
• Free electronic funds transfer

However, EQ Bank has more products than Neo. It has both registered and unregistered accounts. Also, EQ Bank has mobile cheque deposits.

Verdict on Neo Financial Review

Neo Financial Calgary is indeed a top financial institution to reckon with in Canada.

Even though it has limited offers at the moment, it’s excellent at what it currently offers.

However, if Neo offers don’t suit your needs, you can check out KOHO or EQ Bank as an alternative.

Ensure that your decision is based on your situation and financial goals.

Finally, my Neo review is positive and I recommend it to anyone looking to make the best of their savings and purchases.

FAQs on Neo Financial Calgary

Is Neo Financial a Bank?

No, Neo Financial is not a bank. It is, however, a financial institution accredited to offer financial services in Canada.

Where is Neo Financial From?

Neo Financial is from Calgary, AB, Canada.

However, not only Calgary residents are eligible to use Neo. Every qualified Canadian can use it except the residents of Quebec.

Is Neo a Real Credit Card?

Neo offers a real cashback credit card that rewards you upon using it to buy something.

Neo is in partnership with ATB, Concentra Bank, and MasterCard. These big financial institutions add trust to Neo credit cards.

Additionally, Neo is a member of CDIC, which protects your deposit of up to $100,000.

Is Neo Financial Savings Account Safe?

Yes, like Neo MasterCard, a Neo Savings account is also safe because your deposit is protected by CDIC up to $100,000.

Does Neo Financial Report to Credit Bureau?

Yes, Neo Financial reports to TransUnion to access your credit score during your application process.

However, this will not affect your credit score in any way.

If you have more questions about this Neo review, let me know in the comment section.