📖 What Is Neo Financial?
Neo Financial is a company that’s using the latest technological advancements to deliver a superior service for Canadians seeking first-class banking solutions.
The company’s credit card is designed to increase the enjoyment of saving as well as spending. When you use your card at your favorite stores, you can receive cash rewards.
There’s also a Neo Financial savings account that comes with a 1.30% interest rate, which is much more generous than many of the other options on the market.
👨🏫 How Does Neo Financial Work?
The card is linked to specific locations, which means some of the benefits aren’t available in some Canadian provinces.
Neo Financial has close relationships with various retailers in the areas it can be used and encourages customers to spend their cash with these companies. This is why it is noted for supporting lesser-known businesses.
⚙️ Key Features of Neo Financial
There are no annual fees or over-limit fees to worry about. When you use the service, you’ll be altered to various types of activity such as purchases and suspicious transactions. If you lose your card, you can report this and order a replacement through the app. You can also set spending limits. You’ll be given big rewards when you shop at specific stores.
Neo found that the vast majority of Canadian consumers weren’t using the rewards that came with their cards. This is why they aimed to provide rewards that were more aligned with consumer needs.
The rewards include one-time offers and punch card offers. With the one-time offers, you could earn up to 20% in cashback when you shop at one of the selected local stores. The punch card offers may grow if you continue to shop in a specific location.
Most rewards are generated through your spending. You may also be able to save up to 15% on restaurant and eCommerce purchases, up to 20% at cafes, up to 10% on groceries, 5% on gas, 20% on fitness, 15% on shopping and 5% on gas.
The card charges APR between 19.99% and 24.99% on purchases. For cash advances, you will pay between 22.99% and 26.99%.
📱 The Neo Financial App
You will need to download the app to make your application. Once you have your prequalification, you will be asked to apply for the card. You can also open a savings account if you wish. When your identity has been verified, you’ll be able to access a virtual version of your card before the physical version is sent out to you.
When you become eligible for a higher credit limit, your limit will be increased automatically so you don’t need to apply for anything. The app will give you valuable insights into your spending activities, send out important alerts and letting you freeze your account if your card is lost or stolen.
🔒 Is Neo Financial Safe and Secure?
When you’re shopping around for financial services, it’s incredibly important to opt for something that has robust security protections in place. Without these, your identity could be stolen and you could be parted with your money. You could even fall prey to criminals borrowing money under your name.
You have zero liability protection when you use Neo Financial. This means your deposits will always be protected against loss and you won’t be held responsible for any unauthorized charges. If it is proven that you didn’t carry out a transaction yourself, you will have the funds returned to you.
You can also lock your card if you misplace it or if it’s stolen. You can also use spending limits to stop excessive amounts of cash from leaving your account. You can gain access to all the security features through the neo financial app.
🏦 What Other Products Does Neo Offer?
Neo is not just a banking account! In fact, they offer a whole host of diverse financial services that help you manage, spend, invest and earn rewards. Here is a summary of some of the other services they offer.
- Neo Invest
- Neo Mortgage
- Hudson Bay Credit Card
📈 What Is Neo Invest?
Neo Invest is an online based investment service that allows users to open a variety of investment accounts, including RRSPs, TFSAs, and personal accounts. Unlike traditional investment accounts, which require you to manually buy and sell specific investments yourself, Neo Invest manages your investments for you.
This means that you can take advantage of the expertise and knowledge of professional investment managers without having to worry about making complicated investment decisions based on how the markets are moving.
In terms of fees, the Neo Invest fee is on the lower side compared with similar products. As a customer, you will pay only 0.75% in management fees. This makes Neo Invest one of the most competitive rates on the market at the time of writing.
A sticking point for some people when looking to invest is the high minimum deposit limits which, often apply to investment accounts.
Luckily, the Neo Invest minimum deposit requirement is just $1. This makes the service a very popular choice with Canadians who are looking to get started investing right away with minimal commitment and hassle.
🏠 What Is Neo Mortgage?
Neo Mortgage is a mortgage brokerage service that helps borrowers pre-qualify, compare rates, and secure the best deal available.
The service is free for borrowers and funded through lump-sum payments from mortgage providers, which means there is no incentive to offer users loans with higher interest rates.
However, some users may prefer speaking with a brokerage employee in person to help them make their decision.
Additionally, Neo Mortgage does not list all of its lending partners on its website, so additional research is recommended before signing up for any type of loan.
The Hudson Bay Credit Card With Neo Financial
👍 Advantages of Neo Financial
- Integrated features
- Versatile mobile app
- Substantial incentives and rewards
👎 Disadvantages of Neo Financial
- Perks vary from province to province
- Some of the incentives may not appeal to you personally
As there are so many credit cards on the market, it can be hard to decide which option is right for your needs. Nonetheless, many Canadians have reported experiencing satisfaction with Neo Financial.
A big perk is the way that the card incentivizes you for supporting local businesses. The card is linked to a high number of well-known companies, which can cut the cost of online purchases substantially. If you’re not concerned about shipping times or receiving products immediately, this may well be the card for you.
The card may also benefit you considerably if you’re looking for a way to boost your credit so you can be accepted by more lenders in the future. You may even be accepted if you have no credit history at all.
Even if you live in an area that has no affiliated retailers, you may still be able to benefit from the card. If you’re seeking out a solution that offers widely appealing rewards, helps you support nearby businesses and strengthen your credit report, it’s certainly worth considering Neo Financial.
The savings account may also be of vast appeal to you even if you don’t plan on using your credit card much or at all. The 1.6% interest rate enables you to grow your money faster without facing annual fees or minimum balance requirements.
It’s also easy to get in touch with the customer service team whenever you require assistance. If you can’t get the information that you need in the app, you can simply reach out to the team to receive the guidance that you require.
The Savings account is just the same as a conventional checking account. The difference is that you can earn high levels of interest whilst you’re paying bills, making deposits, and withdrawing money. With such a wide range of perks on offer (too many to include in our Neo Financial review!), it’s no wonder so many people are choosing Neo Financial over the competition.
Nonetheless, we always recommend reading the terms and conditions carefully before you sign up for any financial service.
Is Neo Financial a Legitimate Financial Services Provider?
From our research, it appears that the answer is yes. Neo Financial partners with reputable and regulated institutions to offer a variety of products, including online bank accounts, investment accounts, and Mastercard credit cards.
These products are all backed by strong customer support (over 1 million Canadians currently use Neo financial!) and competitive rates, though they may have some drawbacks as well which we explore in this review.
Therefore, it is important to do your own research before deciding whether or not to use Neo Financial Services.
Can You Build Credit With Neo Financial Bank Accounts?
Neo Financial offers many financial services that can be tailored to your needs. However, these cards may not be the best choice to improve your credit score. The main reason for this is that Neo reports repayment history into TransUnion, and not into Equifax.
If you have a credit score that is low and you are finding it difficult to qualify for credit cards issued by other banks then, the Neo Secured Card could still be of value.
This card enables you to start building a trail of credit history on your TransUnion profile, which can help gradually improve your overall credit score. Although this is a slower route to good credit, it is still viable using only a TransUnion profile. If you are interested in building credit we recommend checking out our KOHO review.