Neo Financial Savings Account Review: Neo Money & HISA 2024

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This is a Neo Financial Savings Account review for 2024, covering its product offering, fees and how the bank compares to other high interest savings account providers in Canada.

What is Neo Financial

Neo Financial is a technology company on a mission to use technology to simplify and provide Canadians with better financial experience.

It has partnered with some of the leading financial institutions in Canada like MasterCard, Concentra and ATB to make this happen.

Neo Financial had 2 products: Neo MasterCard, a cash back credit card and Neo Savings Account, an HISA offering.

However, Neo Financial has recently expanded its products to include investment and mortgage.

At the moment, new users that sign up for the cash back credit card receive a bonus of $25.

Neo financial savings account review with the features, rates, fees and how to open an account

Learn more about all its products and services in my full Neo Financial Review.

Neo Savings Accounts

From its inception, Neo Financial offered only one savings account (Neo Money). But as the bank evolves, it’s launches a high-interest savings account (HISA), bringing its savings accounts to two.

Neo Money

Neo Money is an account that offers access to Neo Money Card, a prepaid Mastercard with 15% cashback on first purchase, 5% cashback on select purchase and up to 1% cashback on every other purchase.

The account also offers a 2.25% interest on every dollar you saved in it.

Here are the key features of the Neo Money

  • 2.25% interest on every dollar in your account 
  • Pay bills with ease
  • Get notified in real time
  • Customize your rewards 
  • Track your spending

Neo High-Interest Savings Account (HISA)

This is a standard HISA that Neo Financial recently launched to offer Canadians high-interest on theri savings with it.

The Neo Financial HISA offers a competitive interest of 4.00% with no monthly fees and minimum balance.

Below are the key features of the account:

  • Competitive Rates: At 4.00%, it is one of the highest savings rate available in Canada and compares favourably with other online banks like EQ Bank. Check this post for a ranking of the highest HISA rates in Canada currently.
  • No minimum deposits: That means you can get started with as little money as you like
  • No Fee banking: Carry out your everyday banking including Interac e-transfers, bill payments and more with no fees.
  • Easy account opening process: all done from your mobile phone.
  • Deposit Protection: Your deposit is guaranteed by CDIC

The daily Interac e-Transfer limit (send) is $10,000.

Neo Savings Account Fees

There are no fees to use or operate the Neo Savings account. So you get to save on those pesky monthly fees. Also, sending Interac e-Transfers, bill payments, bank to bank transfers are all free.

The only fee the bank charges is $5 for a printed version of your monthly statements or other documents. Check this page for the fee schedule.

How to Open a Neo Financial Savings Account

Neo Savings account is available across Canada but Quebec is coming soon.

To open an account at Neo Financial, you’ll need to download its mobile app or use this link. Then follow the prompts.

Get a government issued ID and take a selfie with it. And of course, you’ll need to meet the basic requirements for opening an account in Canada.

These include:

You can reach them with any questions via phone (1-855-636-2265) or email at [email protected]. The support team is available Monday to Friday between the hours  9am and 5pm (MT).

Neo Financial Mobile Apps

The bank has mobile apps for both iOS and Android devices. To get started, you’ll need to download one of the apps.

Online banking is not available yet, so you’ll have to do all your banking from within the app.

Is Neo Financial Savings Account Safe?

The short answer is Yes.

Neo Financial savings is provided through Concentra Bank, meaning your deposits are held at the bank. Concentra Bank is a CDIC member and a schedule I bank serving more than 5 million credit union members across Canada.

Your deposits at Neo Financial plus any other one held at Concentra directly are insured up to $100,000.

Learn more about how CDIC works and strategies to maximize the deposit protection.

Neo Money Account vs Competitors

How does Neo Financial stack up against the other online banks offerings?

If you’re only interested in getting the highest interest rate possible, then Neo Financial offers a competitive rate but you can get better rates from other banks.

Another new bank, Saven Financial has 4.20% on its high interest savings account. And you can also get 3.70% from Canadian Tire Bank.

Saven Financial is a new online bank that was introduced in January 2021. You can read about its account offering in this Saven Financial Review.

Motive Financial has been around for longer. The savings interest is competitive at 4.10% but there are a few fees to worry about like Interac e-transfer charges.

You can also get a promotional rate of 5.75% from Tangerine for the first 5 months and 0.70% afterwards.

Neo Savings vs EQ Bank Savings Account

EQ Bank is one of the most popular online banks in Canada and a division of Equitable Bank. The bank has consistently ranked as one of the best places to get a non-promotional decent savings rate.

The rate is currently 4.00 on the EQ Bank Savings Plus Account, a regular non-registered account. You can earn the same 3.00% interest on EQ Bank USD, TFSA, FHSA and RSP savings accounts.

Like Neo Savings accounts, you get to do your day-to-day banking with $0 fees. But EQ Bank has a better and more matured offering including mobile cheque deposits, prepaid card, registered accounts, joint accounts and investments.

You can find a detailed comparison of both banks here: Neo Financial vs EQ Bank

Read more:

Neo Savings Account Cons

The Neo Savings account is a basic high-interest savings account with no fees. Perhaps, more features will be added in the future as the bank grows.

For now, some of the drawbacks of the account includes:

  • Mobile only: Internet banking is unavailable for now. So you have to do all your transaction through the mobile app.
  • No Paper cheque or mobile cheque deposit yet. It states on their website that this feature is coming soon
  • No Registered accounts
  • Quebec residents can’t use it yet

Final Thoughts: Neo Money Account Review

This Neo Financial savings account review is largely positive. The bank is new so hopefully it’ll be rolling out more features gradually.

If you just want a basic HISA without all the extra features, Neo Financial may be worth your while – especially if its cash back credit card is also on your radar.

Sign up for Neo Financial here.

Also check:

Neo Financial Savings Account Review
4.5

Summary

Neo Financial Savings Account is a high-interest savings account with a decent interest rate and no fees.

Simon is a CPA by day and a Personal Finance Blogger by night. With over a decade experience in financial services, he's passionate about personal finance, investing and helping people take control of their financial life.

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