With so many credit cards on the market, how do you know which one to get? I think we’ve all struggled with that problem from time to time.
Most people are looking for a no-fee card that benefits them in some way. The Neo Financial Credit Card does exactly that.
With no fees on their Standard account, Neo offers cashback rewards and even a savings account to its users.
But is it worth it, and does it hold up against other credit cards? After looking into the company a bit more, I’ve found that it is a solid option for almost everyone.
If you are thinking of opening a new card or making a switch, read on.
Cashback Credit Card
Neo Financial rewards its users for spending and saving with their high-interest savings account and impressive cashback rewards program.
- Earn cashback rewards on purchases at retail partners
- No fees or minimums on Neo Money
- Easy to use mobile app to access and manage your account
- No insurance coverage
- The savings account does not offer mobile deposit or cheque writing
How Does Neo Financial Work?
Neo Financial is a fin-tech company out of Canada. They offer a credit card with three levels of cashback rewards, as well as a savings account with a higher than average interest rate.
Neo is different from other credit card companies in that it is 100% digital. In addition to making purchases with your card, you can make deposits or send Interac e-Transfers no matter where you are.
The more purchases you make with your Neo Card, the more cashback rewards you’ll earn.
The founders of Neo Financial know a thing or two about success. Andrew Chau and Jeff Adamson started the Winnipeg-based online food delivery service Skip the Dishes. This innovative company allows users to order food from their phones.
Now that you know the basics, let’s get into the nitty-gritty and see what makes this company so unique.
The biggest benefit to the Neo Card is the rewards program. Earn cashback rewards instantly from thousands of brands and retailers, including local stores.
In addition to cashback, most retailers will give you an extra reward on your first purchase. The Neo Card also guarantees you’ll receive at least 1% cashback on your purchases. If you fall below that, the company will top your rewards off.
As for the rewards program, there are three different tiers.
- Standard. Free to all customers – meaning no monthly fees. You can still earn cashback on all your purchases at participating retailers.
- Plus. For $2.99 per month, you can get an additional percent in cashback rewards. Neo recommends this tier to its customers that spend more than $750 per month.
- Ultra. For $8.99 per month, you will earn an additional two percent more in cashback rewards than the standard package. This option is recommended for users spending more than $1,000 per month.
The upside to Neo is that you can earn your rewards by paying everyday bills like your mobile phone and utilities. In addition, the company partnered with local businesses, so you can support those smaller shops within your community while earning cashback rewards for yourself.
Redeeming your rewards is simple. There is not a minimum amount needed, and you can redeem them at any time.
Neo Financial isn’t just focused on credit cards. The company also offers its own savings account, which boasts a higher than average interest rate.
The benefits to this account? No monthly fees or minimum balances required. Plus, there are unlimited free transactions.
You can deposit money, pay your bills, and even do Interac e-Transfers. You can link up your other bank accounts, making it easy to do transfers back and forth.
Neo Financial partnered with Concentra Bank to offer the account. Because that bank is a CDIC member institution, your deposits are eligible for CDIC protection up to $100,000.
The only downside to the account is that you can’t write cheques or do mobile deposits. You also will not have access to a debit card.
Unlike popular companies like KOHO and Stack that offered prepaid cards, Neo is an actual credit card. That means you can build your credit by paying off your balances in full each month.
In addition, you’ll have a credit limit that you will need to be aware of. Neo can raise that limit automatically when you are eligible instead of making you apply for it.
With fraud and identity theft an ever-present issue, you should learn about your credit card’s security functions before you use them. With Neo, you will have Mastercard Zero Liability. This protects you against unauthorized transactions.
In addition, you have other security features like freezing or unfreezing your card with the press of a button. Neo also lets its customers set limits on their spending, so they do not go overboard and over budget.
Easy to Use App for Money Management
You can download the Neo app and use it on your Apple or Android phone. It features a simple dashboard with features like paying bills, checking your cashback rewards, and more.
You can get real-time notifications regarding your transactions and see your spending details. A great tool if you are trying to keep better tabs on your money.
The app lets you browse through your rewards and store offers. You can cash out at any time – no pesky thresholds to meet.
You can also apply for the credit card and savings account directly from the app, making it convenient for everyone, no matter where you are.
The majority of credit cards out there have certain income requirements or credit scores to obtain before issuing you a card. Neo has neither, making it easy for anyone to apply for a card.
To apply, you need to be the age of majority in your province and have a government-issued ID. At this time, Neo doesn’t operate in Quebec.
Similar to Neo, Tangerine offers a no-fee credit card that gives its customers higher cashback rewards on two categories of their choice. You can choose between groceries, restaurants, recurring bill payments, and more. All additional purchases earn rewards at a lower rate.
Even the higher cashback reward percentage is slightly lower than Neo’s average. Plus, with this Tangerine card, you can only choose the higher cashback rate in two categories. Not so with Neo. They offer rewards on thousands of brands and even when shopping at local businesses.
Both are widely accepted and have no limits on the cashback you earn. With Tangerine, you can open up a savings account to deposit your cashback rewards. The benefit to this is you can add another category to gain higher cashback earnings. This means you are now eligible for three categories instead of two.
One of the clear differences between Tangerine and Neo is insurance protection. Tangerine offers purchase protection for 90 days and an extended warranty for one year.
The bottom line is you will probably earn more rewards with Neo’s cashback percentage, but you won’t have insurance protection.
Neo Money Account vs EQ Savings Plus Account
EQ Bank is an online bank that offers a high-interest savings account. The rates between EQ’s Savings Plus and Neo’s Money accounts are similar, with Neo slightly edging out its competition.
EQ Savings Plus does not have any monthly fees or minimum balance requirements. However, because it’s a bank, it does offer a bit more. They have additional savings accounts, as well as mobile cheque deposits.
The bottom line is that it depends on what you’re looking for. If you just need a savings account with a high-interest rate – Neo is a good choice. However, if you are looking for a savings account and more, EQ Bank might fit your needs.
The majority of customers that reviewed the card and savings account found it favourable. Many users set up a savings account because of the high-interest rate.
The Reddit user above continued this discussion in another thread and commented that he mainly used his savings to accrue interest. He kept other accounts at different banks, mainly for accessing cash and using other financial services.
And even though Neo’s Ultra tier costs $8.99 per month, one user does not hesitate to pay for it.
The biggest complaint regarding Neo was its customer service. There seemed to be limited gripes regarding the actual credit card or savings account, but getting ahold of a real customer rep remained a big problem.
I found the above comment again and again. Anyone experiencing any kind of problems will be hard-pressed to get in contact with the service center.
Overall, users seem satisfied with Neo’s credit card and savings account. However, if you experience an issue, you probably won’t find the company so favourable as their customer service seems to be lacking.
Neo Financial is a legitimate business. They are backed by ATB Financial, and the savings accounts are held with Concentra Bank, a CDIC member.
In addition, Neo’s credit cards include Mastercard’s zero liability backing.
Neo Financial recently made headlines when it secured $64 million in backing from Paypal co-founder Peter Thiel. The company hopes to secure a greater portion of the financial market and expand its products and services. This means adding more retailers to its rewards program and offering mortgage and lending options.
How to Apply
If you are interested in the Neo Credit Card, download the app or set up an account online. From there, you can complete the application. Once prequalified, the app will send you an invitation to open the savings account.
Next, you will need to verify your identity. Once finished and approved, you will have instant access to your new credit card via Apple Pay or Google Play. The physical card will arrive in a few weeks.
Neo sets itself apart from other credit card companies by offering high cashback rewards, even with local businesses. The best part is that there isn’t an income requirement to sign up, and customers with a variety of credit scores get approved.
If you’ve struggled with credit issues in the past, this card is an excellent choice to help you build your credit back up, all while earning rewards.
Offering a high-interest savings account just makes it all the more attractive. If you are in the market for a new credit card, apply for a Neo Credit Card.