Neo Financial Savings Account Review (2021)

This is a Neo Financial Savings Account review for 2021, 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.

At the moment, Neo Financial has 2 products: Neo MasterCard, a cash back credit card and Neo Savings Account, an HISA offering.

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

Neo Savings Account

If you’re looking for a place to earn more on your savings account while avoiding fees, this account may be for you.

Here are the key features of the Neo Savings account:

  • Competitive Rates: At 1.55%, 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.
  • Wide availability: Neo Savings and the cashback credit card is available across Canada except in Quebec
  • 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. Then choose one of the existing products: Neo Mastercard® or the Neo Savings account.

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 Financial Savings 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 compares favourably to the other banks.

Interesting, Saven Financial and Motive Financial also have 1.55% on their savings account. And you can get 1.80% from Canadian Tire Bank.

Saven Financial is a new online bank that was introduced in January 2020. You can read about its account offering in this Saven Financial Review.

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

You can also get a promotional rate of 2.10% from Tangerine for the first 5 months and 0.10% 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 1.50% on the EQ Bank Savings Plus Account, a regular non-registered account. You can get a higher rate of 2.30% on its registered accounts – EQ Bank TFSA and RSP 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, registered accounts, joint accounts and investments.

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 debit card: Only the cash back credit card is available
  • No Registered accounts
  • Quebec residents can’t use it yet

Final Thoughts: Neo Financial Savings 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.

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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