Neo Financial Review for 2024

In just over two years, Neo Financial has amassed more than one million customers in Canada, making it a top player in the new category of challenger banks.

But what is Neo Financial? What financial services does Neo offer? Who owns Neo Financial? How do you open an account with them? And perhaps, most importantly, is your money safe?

In this guide, we will answer these questions and weigh the pros and cons of using the fintech (financial technology) company’s services.

What is Neo Financial?

Neo Financial is one of several online-based, fintech companies offering online banking services that are changing how Canadians earn, spend and save their money. Digital forms of consumption have disrupted many industries, and Neo Financial is making waves in the banking world. By offering their services fully online, challenger banks like Neo can rival mainstream products from traditional, brick-and-mortar banks with higher savings accounts, no-fee cashback credit cards and even wealth management services.

But who owns Neo Financial? The question might have occurred to you, and you do well to ask it. Most startups are just small groups of people with many hats, and Neo Financial is no exception. Neo was created in Calgary by Harvest, a venture builder in the Canadian Prairies, and is backed by ATB Financial, a bank owned by the province of Alberta.

It's fast and easy to sign up with Neo.

Neo Financial pros and cons

As a digital institution without a physical space for customer service, some may be reluctant to give Neo their business, but dismissing the fintech company altogether might be a mistake for the many benefits that come with its tech-minded approach to banking.

Here are some of the pros and cons of going with Neo:

How do you open a Neo Mastercard®?

It’s simple. All you need to do to get a Neo Financial credit card is set up an account with them.

1. You can download the Neo Financial app on your smartphone and just tap Sign up, or you can apply through their website.
2. They’ll ask you for a valid email address and a Canadian phone number, and that’s about it.

The whole process of securing a ready-to-use, virtual Neo Financial Mastercard takes a few minutes.

Here’s what you’ll need to apply for a Neo Mastercard®:

• Live in Canada
• Have a Canadian photo ID
• Be the age of majority
• A credits core of at least 690+ — significantly lower than many competitors. 

For those who are struggling with a lower (or no) credit score, you can still be a member of Neo Financial. The Secured Neo Mastercard comes with guaranteed approval and lets you build your credit score if used responsibly.

What products does Neo offer?

Despite its youth, Neo offers an impressively comprehensive variety of services from mortgages and wealth management tools to cashback credit cards and high-interest savings accounts.

Neo Mastercard®

The Neo Mastercard® is a no-fee credit card with an average of 5% cashback if you shop with Neo partners, but the card still gives you cashback rewards for non-partners. There are no annual or inactivity fees, and you can get the Neo Mastercard® with a credit score as low as 690+ — lower than most banks.

Neo has more than 10,000 partners across Canada, with a good variety of ubiquitous chain stores and local businesses. The Neo Financial app also includes welcome offers for first-time purchases at most of their partners. These can go up to a hefty 15% cashback. For example, in Toronto, Second Cup will offer you a 10% cashback welcome bonus, and then 4% every three buys after that.

If you don’t have great credit, worry not. Neo Financial is a credit builder. Their Secured Neo Mastercard helps you get a better credit score as long as you pay back each month. And it foregoes a credit check altogether (except in Quebec). It works just the same as the regular Neo Mastercard®, but the credit limit is set by depositing money in your Neo Money™ account.

Hudson’s Bay Mastercard^®️

This no-fee credit card is born from a special partnership between Neo Financial and Hudson’s Bay and is a solid option for devoted customers of Hudson’s Bay and thebay.com.

With this credit card, you get double the points for shopping at Hudson’s Bay stores and thebay.com, plus you also earn points for your regular shopping, everywhere else. There are still cashback rewards for shopping at Neo partners, but you’ll get a little less than the regular Neo Mastercard®.

Additionally, you’ll get 15% discounts on almost any purchase you make at Hudson’s Bay on the same day you activate the card. If you’re an avid Hudson’s Bay shopper, this is definitely worth it, as it’s their best rewards card out there.

Neo Money™

Neo Money™ is Neo Financial’s high-interest savings account and one of the most interesting products Neo offers. It comes with no annual fees, unlimited free transactions and no limited balance requirements.

But this account isn’t a pure savings account. You get free bill payments and debit transactions, too. Neo encourages combining their cashback card with Neo Money™ to reap the highest benefits.

Neo Invest™

An easy-to-use investment tool, Neo Invest™ offers private wealth management experience to the average person.

Backed by OneVest, Neo Invest™ invests your money based on the goals, values, timelines and risk tolerance that you predetermine. These accounts have low fees and no minimum investment amount, which is a pleasant surprise for the average investor.

Portfolios are constructed using Exchange-Traded Funds (ETFs), and your Neo Invest™ account can be a TFSA, RRSP, or just a personal account.

Neo Mortgage™

This is the latest Neo Financial has to offer, and a fairly rare tool in the digital banking sphere. You can get a new mortgage through Neo Mortgage™ , refinance or renew from the comfort of your smartphone. Currently, fully digital mortgages through Neo are only available in Ontario, Alberta and British Columbia, but they plan on expanding in the near future.

The biggest advantage of using Neo here is the convenience of an end-to-end digital experience, which contrasts with the hassle of getting a mortgage from a traditional institution, and Neo scans the market to find the best mortgage rate.

Who is Neo right for?

Neo Financial is best for those looking for simple, easy-to-use banking that avoids fees and prioritizes cashback rewards.

In a world where many other fintech upstarts offer similar conditions, Neo does pull ahead of the pack with its flexible high-interest savings account and extensive list of cashback partners with higher-than-average rewards.

If you are uncomfortable with a paperless, fully digital experience, Neo might make you a little nervous, but from everyday spending to placing your emergency fund or even creating an investment portfolio, Neo has a product for most banking needs, without ever having to step foot in a bank or even leave your home.

What fees does Neo charge?

For the most part, none. Neo’s cards and accounts bear no annual or monthly fees, and they won’t charge you for inactivity either.

The Neo Mastercard® can be reinforced with optional perks or bundles from $0.99 to $9.99 monthly. These go from focusing on travel to everyday essentials and each brings benefits and rewards that improve the standard card.

Like any credit card, Neo Mastercard® also has interest rates on purchases that are triggered if you don’t pay at the end of the month. The same goes for cash advances.

Neo Invest™ comes with a meagre 0.75% managing fee per year that is paid monthly — low for an actively managed portfolio. Some ETFs also charge an additional Management Expense Ratio (MER), which should be taken into account.

For everyday use, though, Neo comes with zero fees.

Is Neo safe?

In short, yes. Neo is a safe banking option for everyone.

Because banking fintech companies like Neo aren’t regulated under Canada’s Bank Act, they cannot call themselves banks, and they are less regulated than traditional banks. This fact might make some potential customers nervous, but Neo has a solution to that.

The Neo Everyday and Neo High-Interest Savings accounts are provided by Peoples Bank of Canada, a CDIC member institution, and are eligible for CDIC deposit protection. Deposits held in Neo Everyday and Neo High-Interest Savings accounts are combined with eligible deposits held at Peoples Bank of Canada, for up to $100,000 of deposit protection, per category, per depositor. For more information about CDIC deposit insurance, please consult CDIC's website cdic.ca.

How do I log into Neo Financial?

With Neo Financial, sign-up and login are simple and straightforward. To sign up, all you need is to download the Nep Financial app from the Play Store (for Android) or the App Store (for iOS/iPadOS) onto your smartphone. Make sure you’ve got a valid email and Canadian phone number. Then just tap Sign up within the app and follow the instructions. Alternatively, you can sign up on their website by clicking Sign up and following a similar process.

To log in, open up the Neo Financial app or website. All you need is your Neo Financial sign-in credentials: the email you used to sign up and your password. Once you’re in, you have access to all of your banking needs, right in the palm of your hand.

How do I get the Neo Financial app?

All you need to get the Neo Financial app is to download it onto your smartphone from the Play Store (for Android) or App Store (for iOS/iPadOS), and you’re all set.

How do I contact Neo customer service?

With Neo being fully online, you might be curious about what to do when you need Neo Financial customer service. Here are a few ways to contact them:

Phone number	Email	Chat
1-855-636-2265 (7:00 am – 8:00 pm MST Everyday)	[email protected]	Accessible once logged in via the app or website (7:00 am – 8:00 pm MST Everyday)

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