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Who wouldn’t like the convenience of a traditional bank without the cumbersome fees?
That’s the thinking behind Neo Financial, a digital-only financial services provider giving Canadians access to credit cards, savings accounts, as well as mortgage and investment services — all of which can be monitored and adjusted within an app.
Below, we break down all the Neo Financial products to help you decide which might be right for you.
Founded in 2019, Neo Financial is a digital financial services challenger bank that aims to simplify the banking process for Canadians while making it more accessible and affordable.
Its offerings include the Neo Credit card, which earns users an average rate of 5% cash back. Neo Money is the bank’s hybrid chequing/savings account that earns you an average 5% cash back on all purchases, and a high interest rate of 4% on your balance.
The company also offers a Hudson’s Bay Credit Card that allows users to double their points when shopping at The Bay. And there’s Neo Invest, which offers a full slate of investment tools, and Neo Mortgage, for those looking to finance (or refinance) the purchase of a home.
You can also customize your Neo Financial rewards program by subscribing to monthly add-ons that provide extra cash back, travel perks (not available in Quebec), and more for a small fee.
Plus, Neo Financial has launched a new card program with Cathay Pacific that caters to Canadians who travel. As Canada’s only card that earns Asia Miles, it will offer cardholders a welcome bonus of up to 45,000 miles to get them started. Benefits will also include booking discounts, premium rewards, insurance coverage, and useful digital features through the Neo app. Newcomers to Canada will also have a secured option available to them that requires no credit history to be approved.
Until then, you can join the waitlist to apply for the new credit card.
Neo Credit is a customizable cash back credit card with no monthly or annual fees. You can earn an average of 5% unlimited cash back at more than 10,000 Neo partners across Canada. The Neo app allows you to easily split the bill at restaurants, sending out multiple Interac e-transfer requests that you can have the money deposited directly into your Neo Money account.
You can customize your Neo Credit card rewards program by subscribing to supplemental perks packs for a small fee. For example, you can sign up for the Travel add-on for $4.95 a month, which includes Priority Pass airport lounge access.
Purchase interest rates for the Neo Credit card vary from 19.99% to 26.99%, with cash advance interest charges ranging from 22.99% to 28.99%. Your interest rate will depend on your credit history, credit application, and the province you live in.
For those with poor or no credit, Neo offers the Neo Credit card as a secured credit card. The Neo Secured Credit card offers the exact same rewards as the Neo Credit card while offering guaranteed approval and allowing users to rebuild their credit. The Neo Secured Credit card ranks at the top of our best secured credit card and best prepaid credit card lists.
The Hudson’s Bay Mastercard by Neo allows you to collect double the rewards when you shop at Hudson’s Bay, including in store and online. You’ll earn 4x the reward points for almost all purchases at The Bay, as well as 2x the rewards points anywhere else you shop. You can redeem your accumulated points anytime for purchases at there are no monthly or annual fees. Purchase interest rates range from 19.99% to 26.99%, with cash advance rates ranging from 22.99% to 28.99%. Your interest rate will depend on your credit history and application, and the province you live in.
The Neo Money account works like a traditional chequing account but also includes perks most often associated with credit cards and high-interest savings accounts. With Neo Money, you’ll earn unlimited cash back on all purchases (averaging 5% at more than 10,000 retail partners) that you use your Neo Money Card for. You’ll also receive free everyday transactions, including money transfers, and never pay a monthly or annual fee. Benefit from 4% interest on your account balance, which allows you to save the way you would with a high-interest savings account at a traditional bank.
As of December 7, 2023, Neo Financial offers a high-interest savings account (HISA) with a competitive rate of 4%. Note, this isn’t a promotional rate. You’ll earn 4% interest indefinitely on your savings.
While this account is separate from the Neo Money account and card, account holders can easily transfer funds from their HISA to their Money account when they’re ready to spend. This product will be launching in Quebec on December 11, 2023.
Neo Invest is a fully digital investment system that allows clients to choose their degree of risk, as well as the types of investments that most interest them, including cryptocurrency and climate-forward companies.
Neo Invest works with Canadian portfolio management company OneVest to offer clients a customizable way to invest in what matters most to them. Your portfolio is overseen by Neo’s team of money managers, and you can begin investing with as little as $1.
Neo Mortgage allows you to take out a mortgage for a new home without ever having to step inside a bank or a lawyer’s office. You complete the entire process online, including virtual sessions with your lawyer and mortgage advisor.
You can even upload and sign all the necessary legal documents online, saving you the numerous time-consuming office visits that are traditionally required when taking out a new mortgage. Neo allows you to renew or refinance your mortgage as well.
As of June 2023, Neo Mortgage is available to all residents of Canada outside of Quebec.
You can apply for a Neo Financial credit card directly on the company’s site.
The good news is that the company has recently lowered the credit score requirements for their credit card products. This offers increased opportunity for a broader range of customers to enjoy the key benefits that come from banking with Neo Financial. The new requirements can be summarized as follows:
To apply, you need to live in Canada, be of legal age in your province or territory, and have a Canadian photo ID.
There’s also no need to worry if you do not meet the above requirements. If you have poor credit, you can apply for the Neo Secured Credit card, which includes guaranteed approval. You just need to provide a minimum $50 security deposit.
The Neo Money account and the Neo Credit card have no monthly or annual fees, allowing you to keep more money in your pocket each month.
Neo Financial allows you to redeem your cash back rewards at more than 10,000 retail partners in Canada, including Canadian Tire, Loblaws, and even online-only companies like Amazon and Netflix.
Neo Financial offers a full suite of financial services, including Neo Money, the Neo Credit card, as well as Neo Invest and Neo Mortgage, that you can access and monitor all through one app on your phone.
Neo Financial is an entirely digital company, with no physical locations. If you prefer to discuss your finances in person with an advisor, Neo Financial may not be right for you.
Unfortunately, certain Neo Financial services including Neo Money, Neo Travel Perk and Neo Mortgage are not currently available to residents of Quebec.
Yes. The Neo Money account, for instance, is provided by Concentra Bank, which has CDIC deposit protection. Each account is insured up to $100,000 per category, per depositor.
Neo credit cards are also protected; the Hudson’s Bay Mastercard includes Mastercard’s zero-liability protection plan, and Neo Credit and Neo Secured Credit cards are issued by Neo Financial™ pursuant to license by Mastercard International Incorporated, Alberta’s largest financial institution.
Neo Financial is a great option for those looking for a daily online-only banking solution with no monthly or annual fees. It offers a comprehensive rewards system and allows you to manage all of your personal finance needs through one app.
However, the lack of physical branches may be a detriment to those who prefer in-person consultations, and Neo Money and Neo Mortgage are currently not available to residents of Quebec.
Yes, you can build credit with Neo Financial by using the Neo Credit card and Neo Hudson’s Bay Mastercard and paying your bill on time each month. If you have poor credit, you can build credit with the Neo Secured Credit card, where your deposit equals your credit limit. (You’re required to put down a minimum security deposit of $50 in order to get started). Neo Financial will report your usage and payment history to TransUnion, allowing you to rebuild your credit if you make your monthly payments on time.
Neo Financial was founded in Calgary, Alta., by Andrew Chau and Jeff Adamson, co-creators of the food delivery app SkipTheDishes, and Kris Read. The Alberta startup has raised nearly $300 million from investors based on a current company evaluation of $1 billion.
Neo Financial services, including Neo Money, the Neo Credit card, and Neo Mortgage, do not have annual or monthly fees. Neo Invest has a 0.75% monthly asset management fee based on your average daily account value.
