Neo Financial Review 2023: Neo Credit Card & Banking Review
Are you looking for a credit card with excellent cash-back rewards with no annual fees? You should consider Neo Financial’s MasterCard, which earns cardholders an average of 5% cashback. Find out everything you need to know in this Neo financial review of their credit card and banking options.
About NEO Financial
Neo Financial is a Canadian Fintech company that started in 2019 and aims to revolutionize how Canadians bank. Neo has no physical branches and is an entirely online financial company. The team behind Neo Financial has already succeeded in the start-up world after launching SkipTheDishes in 2012, which they sold to JustEat in 2016.
Neo partners directly with merchants to offer higher cash-back rewards that are tracked instantly in the Neo app. Gone are the days of monthly or annual fees on the Neo card or Neo Money high-interest savings account. Due to this, the products offered by Neo Financial are some of the best options for Canadians.
NEO Credit card options
There are three NEO credit card options for personal use: A traditional MasterCard, a secured credit card if you have no credit & a Hudson’s bay Mastercard. There are a few differences between each of the cards that I have broken down below.
The NEO Mastercard
Features:
Unlimited cash-back rewards
No annual fee
15% cash back welcome bonus on first-time purchases
5% average cash back rewards with Neo partners
Cash advances available at 22.99%-28.99%
The interest rate of 19.99%-26.99% on purchases
Unlike traditional credit cards that offer rewards based on spending category, Neo partners directly with retailers to offer higher cash-back rewards. Their cash-back rewards average 5%, with some retailers offering as high as 15% cash back.
Here are some of the fantastic Neo Partners offering high cashback:
Because Neo partners directly with retailers, they can offer cash back instantly that you can track through the Neo app. However, there are no cash-back rewards at retailers that are not Neo partners.
NEO secured credit card
Features:
Unlimited cash-back rewards
No monthly fees
15% cash back welcome bonus on first-time purchases
5% average cash back rewards with Neo partners
Guaranteed minimum of 0.5% cash back rewards
Cash advances available at 22.99%-28.99%
Interest rate of 19.99%-26.99% on purchases
The Neo secured credit card is an excellent option for anyone with no credit. The secured card from Neo Financial works without any credit check and can be used to start building your credit history. This will help you qualify for a credit card, bank accounts and mortgages in the future. You do not need a minimum credit score to qualify.
To use the secured Neo card, you put up funds as security, which works as your credit limit. Unlike a prepaid credit card that declines as you use it, the credit limit stays at your security amount, and you pay the bill off monthly. If you want to close your card, your secured funds are returned.
Hudson’s Bay Mastercard
Features:
Unlimited cash-back rewards
No monthly fees
20% cash back on eligible first-day purchases
2% average cash back rewards with Neo partners
Cash advances available at 21.99%-26.99%
Interest rate of 19.99%-24.99% on purchases
The Neo Financial Hudson’s Bay Mastercard offers double the points at Hudson’s bay company store. If you shop a lot at the bay stores, this card is a great way to get a high cashback of 4 points for every $1 spent there.
On your first day of activation, you get 20% cash back on everyday purchases at Hudson’s Bay. However, many items (like appliances) are excluded from this discount. Still, a 20% cash-back reward as a welcome bonus is one of the best around.
To apply, visit and Hudson’s bay stores, and an associate will be happy to help you sign up for the Neo Hudson’s bay Mastercard. You can also apply online or through the mobile app to access a virtual card in minutes. Use apple pay or google pay to make purchases with your virtual card at the bay and other retailers.
Neo card functionality
All of the Neo card offerings have excellent functionality and features that you would expect to find from a fintech company like Neo Financial. I’ve split them into categories to outline the current and planned features now and in the near future. These items set a Neo Financial credit card apart from the competition.
Features
Neo Financial makes it easy to track your spending habits and get valuable insights by categorizing your purchases and cash-back rewards in one place. Get real-time notifications for purchases, fraud alerts, payment reminders and more. You can also track your cashback & top-ups.
Soon Neo Financial will be offering credit monitoring. Your credit score measures how credit-worthy you are and influences cred limits, qualifying for a mortgage or car loan and many other things in your life.
Bill splitting
If you use Neo Money with your Neo Card, you can pay with your credit card to earn cash back and immediately send multiple Interac e-transfer requests. These payments will be automatically deposited into your Neo Money account. The Neo app will send a copy of the bill & automatically track who has reimbursed you.
Note that this is only available if you have a Neo card and a Neo money account.
Buy Now Pay Later
Neo Financial is in the process of adding the buy now pay later functionality. This would allow you to split payments for purchases over a scheduled amount of time – even after the transaction. This is a new functionality that a traditional bank usually doesn’t offer; however, other fintech start-ups like Klarna already offer this functionality.
The downside of a Neo Card
While this Neo Financial review has highlighted many of the amazing features, there are some downsides that you should be aware of, outlined below.
No traditional benefits of a credit card
Most credit cards offer purchase protection, travel benefits and extended warranty protection. These no-fee Neo cards do not have the same benefits, not even some of the basic ones you would expect with every credit card.
If you are looking for those kinds of benefits, check out the best credit cards in Canada, the best cash-back credit cards in Canada and the best Mastercards in Canada.
No cash back rewards at non-Neo partner’s
Neo can offer such high cash-back rewards by partnering with retailers. You will not earn any cash back when you shop at retailers not partnered with Neo. However, on the Hudson’s bay Neo card, they will top up your cashback to a minimum of 0.5% across all purchases.
NEO Money card – High-interest savings account
To make the most of your Neo card, you must open a high-interest savings account with Neo. This allows you to take advantage of bill-splitting functionality, and you can set up automatic bill payments to ensure your Neo card is always paid off in full.
While this is a savings account, it has the functionality of a chequing account. Interest is calculated daily on your closing balance, with interest paid monthly to your account. The current interest rate is 2.25% going into 2023, but this rate is subject to change without notice.
Just like the Neo card offerings, this savings account has no monthly or annual fee to worry about, letting you keep more of your hard-earned cash. It also has unlimited transactions with no minimum balance required.
Click here for a complete list of the best chequing accounts in Canada.
Is your money safe with NEO financial?
All of your deposits are secured by the CDIC (the Canadian Deposit Insurance Corporation), so you can rest easy that your funds are secured. To learn more about how CDIC protects funds for Canadians, click here
Who is Neo Financial right for (and who isn’t it right for?)
Neo Financial is among the best choices among several online-only banks. It offers much higher cash-back rewards than other competitors with a savings account. This is an excellent choice for anyone looking for those benefits with no annual fees should consider Neo Financial.
If you require in-person assistance with your banking needs, you may want a traditional bank with physical locations and in-person customer service.
Conclusion
There are a lot of positives and some negatives to consider that I have highlighted in this Neo Financial Review. You should build a personal finance strategy and see how Neo Financial can help you in that journey. Using a Neo card for purchases at Neo Partners with another cash-back credit card will be your best strategy for maximizing cash back. Using a Neo high-interest savings account with a chequing account will be a great strategy to earn interest on any extra funds.
About the Author
Nick Robert is the founder and creator of Nickrobert.com. I created this website to educate Canadians about everything related to personal finance. As a Chartered Professional Accountant & Chartered Accountant, I have worked with many Canadians to achieve their personal finance goals.
To contact me, you can visit my contact page to email me directly, or you can visit and participate in my subreddit. Let me know about any topics you would like me to cover. If you are interested in guest posting on this website, message me through the contact page.
