Table of Contents
- Account Basics
- Other Accounts and Services
- How the Account Stacks Up
- Frequently Asked Questions (FAQs)
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A handful of direct banks have sprouted across Canada’s financial landscape over the last decade, heralded by Canadians for their customer-centric approach to personal banking products. Among these online-only banks is Calgary-based Neo Financial, which is notable for sharing some of the same creators as the food delivery service SkipTheDishes.
While the digital bank offers a limited yet flexible line of banking and borrowing tools, the Neo High-Interest Savings Account is a popular product, notable for its lack of fees and competitively high, no-strings-attached interest rate.
In this review, we’ll share more about the Neo High-Interest Savings Account and how this high-interest savings account (HISA) might help you achieve your long-term or short-term goals faster.
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Best For Easy High-Interest Savings
Neo Financial High-Interest Savings Account
4.5
Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.
APY
4.00%
Minimum Deposit Requirement
$0
Monthly Maintenance Fee
$0
On Neo’s Secure Website
APY
4.00%
Minimum Deposit Requirement
$0
Monthly Maintenance Fee
$0
Why We Picked It
The Neo Financial High-Interest Savings Account can be opened in minutes and has no fees or minimum deposits with a very high 4% interest rate on every dollar deposited. Not only that, but because this account is provided through Neo by the Peoples Bank of Canada deposits are insured up to $100,000 by the Canada Deposit Insurance Corporation (CDIC).
Pros & Cons
- 4% interest on every dollar
- Deposits are insured by the CDIC
- No fees
- No minimum deposits
- Instant transfers between accounts
- Open up to 10 accounts to organize your money
- No branches or in-person customer service
- No bill payment or debit card functions without also opening a Neo Money account
- High interest rate may not last
Details
- 4% interest on every dollar
- Deposits are insured by the CDIC up to $100,000
- No fees
- No minimum deposits
- Instant transfers between accounts
- Open up to 10 accounts to organize your money
- Personalize your savings with account names, icons and goal amounts
Account Basics
The Neo High-Interest Savings Account offers a competitive interest rate of 4%, with interest compounded daily and paid to the customer monthly.
The no-fee account does not have minimum deposit or balance requirements and offers unlimited transactions, allowing account holders to move money at no cost.
Customers can open up to 10 high-interest accounts, with options to customize each account with a unique name and icon. This makes saving and tracking balances for specific goals, such as vacations, weddings or down payments, easier.
Users can access the account only through the Neo Financial website or mobile app, as Neo does not currently have dedicated branches or ATMs.
In addition to this savings account working similarly to that of accounts offered by other financial institutions, the Neo High-Interest Savings Account includes insurance from the Canada Deposit Insurance Corporation (CDIC), which insures deposits up to $100,000 at no additional cost.
Other Accounts and Services
Neo Financial offers several digital banking products in addition to the Neo Financial High-Interest Savings Account, including:
- Neo Everyday Account: A combination of a savings account, chequing account and secured credit card, The Neo Everyday Account can process transactions and earn up to 6% cash back on various spending categories, including restaurants, bars, streaming, ride-share and food delivery apps, gas and groceries. Customers can obtain a physical Neo Money Card and use it anywhere that accepts Mastercard or debit. Any deposits on the account will earn 2.25% interest.
- Neo Credit: Similar to the Neo Everyday Account, Neo Credit offers another secured credit card option with similar perks. Customers can earn up to 5% on the same categories while reporting on-time payments to Equifax and TransUnion credit bureaus to improve their credit scores.
- Neo Invest: Neo Invest is an online investing platform working in partnership with OneVest. Investing portfolios are tailored depending on factors such as risk tolerance, financial goals, timelines, and personal values. Additional benefits include tax-loss harvesting, with registered and non-registered account options such as a Tax-Free Savings Account (TFSA), a Registered Retirement Savings Plan (RRSP), or a personal account.
- Neo Mortgage: Neo Mortgage simplifies the home purchasing process by helping new home buyers through the prequalification process and the post-purchase steps, such as selecting a mortgage or applying for a renewal.
Pros & Cons
Pros
- High Interest: Neo Financial offers some enticing perks and some of the highest interest rates on the market. The Neo Financial Savings Account currently offers a rate of 4%, placing it among the highest available in Canada.
- No Fees: Like many neo banks and alternative fintech products, Neo Financial products come with no fees for usage from its customers.
- Additional Products: Neo offers various products, making the bank more inclusive for people looking to maintain a small number of open accounts.
Cons
- Limited Products: Unlike financial products available at traditional banking institutions, Neo Financial does not offer many of the same products, such as personal loans, cashier cheques or Guaranteed Investment Certificates (GICs).
- Absence of Physical Branches: As an exclusively online bank, Neo Financial does not have any physical branches, which may disadvantage some customers.
How the Account Stacks Up
Neo Financial has made its name in Canada’s alternative finance space, but how does this online bank stack up against its competitors? Let’s take a look at how other high-interest financial accounts from online lenders compare to the Neo Financial High-Interest Savings Account.
- Tangerine Savings Account: The Scotiabank-owned online bank, Tangerine, offers a savings account with 0.30% interest, with a promotional rate of 6% for the first five months.
- Simplii Financial High-Interest Savings Account: CIBC’s Simplii Financial offers the Simplii Financial High-Interest Savings Account with a promotional rate of 6.25% for 5 months. (Limits apply. Offer ends October 31, 2024.) The deposit amounts offer tiered interest rates ranging from 0.35% to 4.25%.
- EQ Bank Personal Account: Equitable Bank’s online-only banking branch, EQ Bank, offers a flexible high-interest savings account, boasting up to 4% interest on deposits. The account also offers free Interac e-Transfers and a variety of investing products.
- KOHO: Perhaps the most similar of Neo Financial’s competitors, KOHO offers a high-interest savings account with up to 5% interest and 5% cash back. There are no fees, and interest is calculated daily and paid monthly.
Frequently Asked Questions (FAQs)
Is the Neo High-Interest Savings Account good?
No bank account is perfect, but the Neo High-Interest Savings Account offers an attractive interest rate without limitations. Some users may find the lack of additional services less appealing.
Related: Best High-Interest Savings Accounts
Can you withdraw money from a Neo High-Interest Savings Account?
Yes. Like a regular high-interest savings account, Neo permits account holders to withdraw money from the account without fees or transaction limits.
What is the interest rate for the Neo High-Interest Savings Account?
The Neo High-Interest Savings Account offers an interest rate of 4%.
What is the interest rate for the Neo Everyday Account?
Neo Money offers a range of interest rates depending on the type of purchase that the cardholder makes. Restaurant and bar purchases can earn up to 6%, subscriptions up to 4%, gas and groceries up to 3%, and 0.5% on all other purchases.
Is Neo available in Canada?
Yes. Neo Financial was founded in Calgary, Alberta and is available to Canadians living in all provinces and territories.
