If you are looking for savings accounts that offer robust growth within short terms, the Neo High-Interest Savings Account (HISA) is the perfect option.
The Neo HISA offers an exceptional opportunity to earn much higher interest on your savings compared to traditional banks in Canada. It offers an impressive 4.00% interest rate that makes it easy to grow your savings faster and reach your financial goals sooner.
In this comprehensive review, we will discuss everything you need to know about the Neo HISA, covering its benefits and downsides, fees, the application process, and how it compares with other savings accounts in Canada.
Neo High-Interest Savings Account (HISA): A Quick Glance
The Neo High-Interest Savings Account offers a standout 4.00% interest rate with no fees or minimum balance requirements. With flexibility to open up to 10 separate accounts, customize goals, and easy tracking, it's an excellent choice for various savings goals like emergencies, down payments, or extra income.
- Earn an impressive 4.00% interest rate
- Daily interest calculation, monthly payouts
- No minimum balance requirements
- Unlimited free transfers between Neo accounts
- CDIC insurance for deposit protection
- Zero monthly fees
- Easy online account opening and management
- Organize with up to 10 separate HISAs
- Not available in Quebec yet
- No welcome bonus offered
- No debit card or bill payment capabilities
- Interest rates are subject to change
About Neo HISA
The Neo High-Interest Savings Account is an excellent choice for individuals seeking higher returns on their savings. Boasting an impressive 4.00% interest rate, it stands out as one of the most competitive options in the current market.
The savings account offers accessibility, no fees or minimum balance requirements, and no complex conditions to enjoy this high rate. Moreover, you can open up to ten separate HISAs, each designated for different savings goals.
You can even customize your accounts by giving them unique names, setting specific targets, and easily tracking your progress toward achieving those goals.
If you are looking to build an emergency fund, save for a down payment, set aside funds for a significant purchase like a car or vacation, or stash away extra income, the Neo HISA is a great choice.
With its combination of no fees, minimum deposit or balance requirements, and high interest rates, the Neo Financial High-Interest Savings Account is a compelling option for anyone considering opening a savings account.
It has all the standard features of a HISA, complemented by a convenient goal-tracking tool. Additionally, those with a Neo Money account can take advantage of extra flexibility by seamlessly transferring funds and enjoying unlimited transactions.
RELATED: Neo Financial Review (2024): The Modern Way To Money
Benefits of Neo High-Interest Savings Account
1. Impressive 4.00% Interest Rate
Neo HISA offers an impressive 4.00% interest rate making it one of the highest rates available in Canada. The best part is that there is no limited-time promotion, it’s the regular rate accessible to all account holders.
2. No Monthly Fees or Minimum Deposit Requirements
Experience financial freedom with a high-interest savings account with no monthly fees, minimum deposit requirements, or balance rules. The Neo HISA is designed to be easy to start and maintain.
3. Open Up to 10 Accounts at Once
Flexibility is key, and Neo HISA understands that. You can open up to 10 Neo Financial High-Interest Savings Accounts and allocate each to a specific savings goal. You can manage your finances seamlessly by transferring money between accounts and utilizing the flexibility to meet your financial needs.
4. Customizable Account Name and Icons
You can personalize your savings experience by naming each account and choosing from a selection of cute icons during the initial setup. It’s a small touch that adds a unique, personal flair to your financial journey.
5. Personalized Goal-Tracking Tool
You can also set savings goals and visualize your progress with Neo’s goal-tracking tool. While it may be more of a progress bar, sometimes a simple visual reminder is all you need to stay motivated on your financial path.
Downsides of Neo High-Interest Savings Account
1. Not available in Quebec yet
Unfortunately, residents of Quebec cannot currently access the Neo HISA. However, there are plans to extend availability to Quebec residents in the near future.
2. No welcome bonus offered
Unlike many banks that offer enticing welcome bonuses for new accounts, Neo does not provide such incentives. Nevertheless, the regular 4.00% interest rate is comparable to or even higher than promotional rates at other banks.
3. No debit card or bill payment capabilities
The Neo HISA is tailored for pure savings. To access or spend your funds, you must transfer money to a chequing account, such as the Neo Money account, as it does not offer debit card or bill payment features.
4. Interest rates are subject to change
It’s important to note that Neo reserves the right to adjust the interest rate on the HISA at any time. However, this is standard practice across banks, and while there is a degree of risk, it is not unique to Neo Financial.
Neo Money Account vs Neo High-Interest Savings Account
The Neo Money Account is designed for your everyday banking needs and expenditures, while the Neo HISA is tailored for pure savings and higher returns. With Neo Money, you can handle bill payments, deposit and withdraw funds, make purchases and still get a 4.00% interest rate.
The Neo Money account provides a complimentary debit card for easy access to your funds, while the Neo HISA doesn’t have a card, requiring you to transfer money to your Neo Money account for spending purposes.
Also, the Neo Money account allows you to send Interac e-transfers and pay bills, offering flexibility for day-to-day transactions. On the other hand, the HISA is solely dedicated to pure savings.
You can simply allocate your spending money to the Neo Money Account and reserve your savings in the Neo HISA(s) to maximize your interest earnings.
How to Open a Neo High-Interest Savings Account
To open a Neo HISA, you must be a Canadian resident with a valid Canadian photo ID and phone number. Additionally, you should have a smartphone or webcam for identity verification.
Here’s a straightforward guide on how to get started directly from the Neo website or mobile app:
- Start by creating a Neo profile (If you already have one, you can skip to step three).
- Neo may request a photo of yourself holding your photo ID for identity verification. Upload your photo and click ‘Sign up’.
- Once you have a Neo profile, navigate to the accounts tab to open your High-Interest Savings Account.
- Follow the prompts to complete any additional steps to finalize the account setup.
- When your account is set up, fund your new HISA account with your initial deposit, and sit back and enjoy as your savings start growing!
Neo Financial Savings Account Interest Rate & Fees
The Neo High-Interest Savings Account offers a competitive 4.00% Annual Percentage Rate (APR), with interest calculated daily and paid monthly directly into your account.
The NEO HISA does not have any monthly fees, transaction fees, or minimum balance requirements for inactivity associated with this account.
You can enjoy the benefits of the robust interest earnings without worrying about additional charges, making the Neo High-Interest Savings Account a clear and straightforward choice for smart savings.
Is Neo Safe?
Absolutely, Neo Financial is a legitimate digital bank, and using the Neo HISA is a secure choice. Your deposits with Neo Financial are held at Peoples Bank of Canada, a Schedule 1 bank, adding an extra layer of credibility and security to your funds.
You can rest easily knowing that your eligible deposits with Neo Financial are protected by CDIC insurance, providing coverage of up to $100,000 in the unlikely event of any issues.
Furthermore, Neo uses advanced security measures and robust data encryption protocols. Your sensitive information is handled carefully to ensure a secure banking experience.
The best part is the transparency. Neo openly discloses their rates and policies, fostering trust and allowing you to make informed decisions about your finances.
Does Neo offer GICs?
No, Neo Financial Bank does not currently offer Guaranteed Interest Certificates (GICs). While Neo Financial provides various financial products such as the Neo Money Account, Neo credit card, secured credit cards, and mortgages, GICs are not part of their current offerings.
If you’re specifically interested in GICs and seeking alternative options in Canada with competitive rates, you might consider exploring alternatives like EQ Bank, TD Bank, and other financial institutions that provide GIC services.
How Does Neo Financial Make Money?
In contrast to traditional banks, which primarily derive revenue from interest rates on loans, credit card charges, low account balance fees, overdraft fees, ATM fees, and annual credit card fees, Neo Financial follows a different model to make money.
Neo Financial primarily earns revenue through two channels: collecting out-of-network ATM fees and receiving interchange fees (the fees paid by merchants when consumers use their credit or debit cards).
Neo Financial operates without physical locations, leading to reduced overhead costs. This streamlined approach enables them to operate more efficiently and places a significant reliance on interchange fees as the primary source of their revenue.
Neo High-Interest Savings Account Alternatives
Take a quick look at how Neo HISA stacks up against other alternatives in Canada, like EQ Bank’s Savings Plus Account and Scotiabank Money Master Savings Account.
Features | Neo High-Interest Savings Account | EQ Bank's Savings Plus Account | Scotiabank Money Master Savings Account |
Provinces | All except Quebec | AL, BC, MA, NB, NL, NS, ON, PE, SA | ALL |
Account Type | High-interest | High-interest | Savings |
CDIC Insured | Yes | Yes | Yes |
No. of Free Transactions | N/A | Unlimited | 0 |
No. of Free Interac E-Transfers | N/A | Unlimited | N/A |
Minimum Balance Required | N/A | $0 | $0 |
Monthly Fee | N/A | $0 | $0 |
Debit Transaction Fee | N/A | - | $5 |
Minimum Interest Rate | 3.75% | 2.5% | 0.01% |
Maximum Interest Rate | 3.75% | 3% | 0.01% |
Final Thoughts on Neo High-Interest Savings Account
If you’re searching for a savings solution that offers high interest rates and provides flexibility, personalized goal tracking, and the ability to open multiple accounts for various financial goals, look no further than the Neo High-Interest Savings Account.
With no fees, minimum balance requirements, and a user-friendly interface, Neo HISA is designed with your financial success in mind.
Move towards smarter savings today! Open your Neo High-Interest Savings Account now and start maximizing your returns.
