The Neo Money Account is one of Canada’s best savings accounts. It seamlessly combines the features of a High-Interest Savings Account (HISA) with the spending capabilities of a no-fee chequing account, making it a top choice for many Canadians.
If you are looking for an HISA account that offers high-interest rates, waives monthly and transaction fees, and even includes a credit card, the Neo Money Account is an excellent choice.
In this comprehensive Neo Money Account review, we will delve into the intricacies of this savings account. We will cover everything from its advantages and drawbacks to its safety measures, the application process, and a comparison with other savings accounts in Canada.
Neo Money Account: A Quick Glance
The Neo Money account by Neo Financial revolutionizes banking by offering a standout 3.75% interest rate, surpassing major banks. Combining high-interest savings with chequing convenience, it provides a secure space for savings growth and everyday transactions. The account includes user-friendly online features and grants access to a rewarding network. Customers receive a free Neo Financial credit card, linked to their account, offering an average of 5% unlimited cash back at various partners. Notably, there are no fees for withdrawals, distinguishing it from traditional savings accounts.
- Up to 5% Cash Back
- Minimum 0.5% Cash Back
- No Annual Fees
- Up to 3.75% Interest
- Free Everyday Transactions
- No Minimum Deposit Requirements
- ATM Access Everywhere
- CDIC Insurance Protection
- Not available in Quebec
- Only online transactions, no physical branches
- Does not offer GIC
What is Neo Money Account?
The Neo Money account from Neo Financial is a game-changer, offering the best of two worlds. It offers a remarkable 3.75% interest rate, significantly surpassing the rates provided by most major banks, coupled with the convenience of a chequing account. With this hybrid high-interest savings account, you have a secure place to grow your savings at an impressive rate and enjoy the freedom to use it for everyday transactions like paying bills and shopping for groceries.
Aside from the user-friendly online banking features, this Neo Money Account opens the door to an extensive rewards network. Customers gain access to a free Neo Financial credit card linked to their Neo Money Account, allowing them to earn an average of 5% unlimited cash back at numerous Neo Financial Canada partners.
Also, Unlike traditional savings accounts that impose fees on withdrawals, the Neo Money account allows you to access your funds whenever needed, without any additional charges.
Benefits of Neo Money Account
The Neo Money Account offer many benefits to its customers in Canada. Here are a few of the benefits of Neo Money Account in Canada:
1. High Regular Interest Rate
Earning a competitive 3.75% on every dollar in your Neo Money Account is one of the most attractive offers currently available in Canada. While it may seem incremental, leaving sufficient cash in your account for a few months allows you to accumulate a steady profit effortlessly.
2. Comes with a Credit Card
The Neo Money Account is more than just a savings account; it’s a versatile spend-savings hybrid. Included with your account is a Mastercard, a convenient way to utilize your balance. Shopping with over 10,000 Neo retail partners enables you to earn an impressive average of 5% cashback.
3. No Transaction Fees
Neo Money provides three primary options for managing your funds: bill payments, Interac e-transfers (both sending and receiving), and bank-to-bank transfers. Whatever method you choose, rest assured that there are no associated fees—transactions are free and unlimited.
4. No Monthly Fees
Keeping your Neo Money Account open comes with no associated fees, providing a worry-free experience without monthly or yearly charges for storing your funds. This not only aligns with standard savings account practices but is enhanced by the inclusion of free transactions, adding extra value to your banking experience.
5. No Minimum Balance Required
Start earning interest on any amount when you open your Neo Money Account. There’s no need to maintain a minimum balance.
6. Streamlined Mobile Banking
Easily and efficiently manage your contributions and gains with Neo Financial’s user-friendly online app. Monitor your account seamlessly through streamlined mobile banking, making financial management convenient and accessible at your fingertips.
Downsides of Neo Money Account
While Neo Money Account offers lots of enticing benefits, here are a few considerations to bear in mind before deciding:
1. Not Available in Quebec
Neo is unavailable in Quebec due to distinct regulations surrounding fintech companies in the province. Residents of Quebec may explore alternatives such as EQ Bank or Tangerine.
2. No Paper Cheques
In an era where paper cheques are gradually becoming obsolete, it’s important to note that Neo does not offer this traditional banking feature. You may need to seek other banking options if you rely on paper cheques for your day-to-day transactions.
3. No GICs (Guaranteed Investment Certificates)
Neo disappointingly does not provide access to GICs, which are considered a low-risk investment option with potentially higher interest rates than High-Interest Savings Accounts (HISAs).
4. No USD Accounts
For individuals involved in frequent travel or cross-border transactions, Neo does not offer the option for US dollar accounts.
Does Neo have a Debit Card?
As a Neo Financial Canadian customer, your Money Account includes a complimentary Neo Money Card, combining the convenience of a debit card with the perks typically associated with a credit card.
What sets the Neo Money Card apart is its versatility. Whether you prefer a virtual debit or credit card or the tactile experience of a physical card, the Neo Money Card has you covered. It seamlessly accommodates online transactions or can be used for point-of-sale payments, mirroring the functionality of a standard debit or credit card.
For new Neo Financial clients, instant access to the virtual Neo Money Card allows for immediate online purchases. To obtain a physical card, log into your Neo Financial account, navigate to the main menu, and select “Card.” From there, choose from various Neo Financial Cards and place an order; your selected card will then be promptly delivered to your registered address.
RELATED: Neo Secured Credit Card Review (2024)
Neo Financial e-Transfer Limit
Neo Money Account doesn’t charge monthly account fees, Interac e-transfer fees, pre-authorized debit fees, or NSF fees. However, there are other fees you should consider befor deciding:
1. Paper Statements: $5 per document
2. Inactive Account Fee: $0
3. Interac e-Transfer Limits:
- Per Transaction: $3,000
- Per Day: $10,000
- Per Month: $20,000
4. Neo to Neo Limits:
- Per Transaction: $5,000
- Per Day: $10,000
- Per Month: $30,000
5. Bill Payment Limit:
- Per Payment: $25,000
6. Electronic Transfer Limits:
- Outbound Transaction to Linked External Bank Account: $30,000
- Inbound Transaction from External Bank Account: $100,000
Is Neo Financial Good and Safe?
Yes, Neo Financial is absolutely safe. The Neo Money Account is powered by Concentra Bank and provides account holders with a robust layer of security, ensuring peace of mind for their finances.
As a Canada Deposit Insurance Corporation (CDIC) member, Concentra Bank offers deposit insurance coverage of up to $100,000, fortifying the safety of Neo account holders.
Neo takes security seriously, implementing cutting-edge measures such as biometric authentication (FaceID/fingerprint lock) and 2-factor authentication. This multi-layered approach ensures that Neo accounts are as secure as technology can make them.
RELATED: Neo Credit Card Review (2024)
Is Neo CDIC Insured?
Yes, the Neo Money Account is offered through Concentra Bank, a member of the Canada Deposit Insurance Corporation (CDIC), which means your deposits are eligible for free protection.
In the unlikely event of the bank facing difficulties, up to $100,000 of your funds (combined between both banks) is covered.
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How to Open a Neo Money Account
To open a Neo Money Account, you must:
- Be 18 years old or above the age of majority in your province.
- Be a Canadian citizen or resident residing outside Quebec (Neo is not available in Quebec)
- Be able to provide personal information and documentation, including your name, date of birth and contact information, Social Insurance Number (SIN), and any proof of ID
Follow these steps to begin your application:
- Go to the Neo Financial official website to access the Neo Money application.
- Set up your login details, including a username and password, to secure your account.
- Enter essential personal details, such as your name, date of birth, contact information, Social Insurance Number (SIN), and employment information.
- Upload a valid photo ID and a selfie as part of the identity verification process.
- Before submitting your application, carefully review all the provided details to ensure accuracy.
- Once your application is submitted and approved, transfer funds to your new Neo Money account.
- You’ll receive a virtual card enabling you to make online purchases immediately.
Neo Money Account Alternatives
Take a look at how the Neo Money Account compares to other savings accounts in Canada:
Features | Neo Money | HSBC High Rate Savings Account | KOHO Earn Interest With The KOHO Prepaid Mastercard | Scotiabank Money Master Savings Account |
Ratings | 4.2 | 3.2 | 4.2 | 2.3 |
Provinces | All except Quebec | All | All | All |
No. of Free Interac E-Transfers | Unlimited | Unlimited | Unlimited | N/A |
No. of Free Transactions | Unlimited | 3 | Unlimited | 0 |
Monthly Fee | $0 | $0 | $0 | $0 |
Minimum Interest Rate | 3.75% | 1.35% | 3% | 0.01% |
Minimum Balance Required | $0 | $0 | $0 | $0 |
Maximum Interest Rate | 3.75% | 1.85% | 5% | 0.01% |
Interac e-Transfer Fee | $0 | N/A | $0 | N/A |
Debit Transaction Fee | N?A | $5 | $0 | $5 |
CDIC Insured | Yes | Yes | Yes | Yes |
Final Thoughts on Neo Money Account Review
The Neo Money Account stands out as a financial game-changer, offering an impressive 3.75% interest rate and the versatility of both a high-interest savings and chequing account. With its user-friendly features and access to a rewarding credit card, managing finances has never been more seamless. Say goodbye to withdrawal fees and hello to unlimited cashback opportunities!
Ready to elevate your banking experience? Unlock the power of the Neo Money Account today by creating an account and starting your journey towards financial freedom and rewards!
