Review: Neo Mastercard & Neo Savings Account

Neo Financial is a newcomer to the credit card scene in Canada, with a strong resemblance to the likes of Brim Financial. It is a cash back earning credit card, as opposed to a prepaid card. 

Let’s review the Neo Financial Mastercard and see if it has what it takes to secure a place in your wallet.

Overview

The Neo Mastercard currently does not offer a welcome bonus for new customers.

Plus: You can earn an additional $60 FlyerFunds Rebate on the Neo Mastercard when you apply through Frugal Flyer Rebates!

Neo Mastercard

$60

Apply Now Learn More Terms & Conditions apply

Neo Mastercard

The Neo Mastercard earns up to 15% boosted cash back at thousands of partners across Canada.

Earn $60 in FlyerFunds when you apply through Frugal Flyer.

OFFER
$0 cash back

MINSPEND
$0

EST. VALUE
$60+

ANNUAL FEE
$0

FOREX FEES
Yes

EXPIRY
–

First Purchase Bonuses

Some Neo partners offer large cash back returns on your first purchase with them, of up to 15%. These first purchased bonuses can be seen within the Neo Financial app.

There is usually also a cap on the total amount of cashback. These bonuses present another form of welcome bonus that you can take advantage of as a new Neo cardholder.

Fees

With the standard Neo financial card, there is no annual fee. There is also no over-limit fee or inactivity fee. 

There is a fee for purchases in foreign currency of 2.5% set at the Mastercard exchange rate.

Related: Foreign Currency for Travel Abroad: Fintech Disruptors to the Rescue

Benefits of the Neo Mastercard

Partner Retailers Accelerated Cash Back

The standout feature of the Neo Mastercard is its claimed cashback rewards rate of 5%. However, this rate is not static. Instead, Neo has a number of partner retailers, including local businesses as well as big-box retailers, giving cardholders the opportunity to earn rewards at different cashback rates. Neo states that you can earn an average of 5% across all retailers, and also that the cashback is uncapped.

So what are these retailers? Here is a list of all major Neo Financial partners and their cash back rewards, as of February 2022:

For a more comprehensive list, including (almost) all local and boutique partners, see this spreadsheet we’ve compiled.

We calculated the rate among only the large chain stores and name-brand partners and found it to be closer to 3%. The higher cashback rates among the smaller local partners allow Neo to inflate their ‘average rate’ to 5%, however, the effective rate you’re going to be getting won’t be this high. Just something to be aware of.

Of note, Neo guarantees an earn rate of at least a minimum of 0.5% 1% across all other purchases, whether a partnered retailer or not.

Update: Effective Tuesday, August 23, 2022, Neo changed their previous 1% minimum cashback guarantee to 0.5% for new cardholders (existing cardholders will still receive the 1%).

Virtual Card

Immediately upon approval, you have access to the Neo virtual card. This card has the same card number as your physical card. You can add it to Google Pay or Apple Pay digital wallets.

Neo Savings Account

Frugal Flyer offers a cash rebate on new account signups to the Neo Financial Savings account. See current rates and apply via our FlyerFunds rebate page.

The Neo Savings Account is an online-only, high-interest savings account that has all the basic functions of a traditional bank account, but offers a solid interest rate of 2.00% with the ability to increase the rate to 2.75% by holding a minimum balance of $20,000 in the account.

Neo Savings Account

$10

Apply Now Learn More Terms & Conditions apply

Neo Savings Account

The Neo Savings Account earns a minimum interest rate of 2.00% and up to 2.75% based on your Neo membership tier.

Earn $10 in FlyerFunds when you apply through Frugal Flyer.

ACCOUNT TYPE
Savings

OFFER
Earn 2.25% on balances between $5,000 and $19,999, and 2.75% on balances over $20,000

MONTHLY FEE
$0

Related: Are New Bank Account Promotions Worth It?

You can use your Neo savings account to pay bills, make Interac e-transfers, deposits and withdrawals, all from one place. The Neo Money account has no minimum balances or monthly fees (essentially unlimited free transactions). 

Neo Savings can be funded through three methods: Interac e-Transfer, transfer from a linked bank account, and direct deposit.

Neo Secured Mastercard

Another brand new product to the Neo Financial portfolio is the Neo Secured Mastercard. This card functions the same as the Neo credit card with the standard rewards tier. This card can be a good method to build your credit if needed or can be used if you are unable to be approved for traditional credit products.

Neo Secured Mastercard

$25

Apply Now Learn More Terms & Conditions apply

Neo Secured Mastercard

The Neo Secured Mastercard offers guaranteed approval and earns up to 15% boosted cash back at thousands of partners across Canada.

Earn $25 in FlyerFunds when you apply through Frugal Flyer.

OFFER
$25 cash back

MINSPEND
$0

EST. VALUE
$50+

ANNUAL FEE
$119.88

FOREX FEES
Yes

EXPIRY
–

The Neo Secured Mastercard:

• Is a physical and digitally secured card that doesn’t require a hard credit check
• Offers guaranteed approval
• No monthly or annual fees
• The credit limit is equal to security funds, which must be a minimum of $50
• Security funds are stored safely in their Neo account
• Security funds will be fully returned if you close their card and owe no balance remaining

As with the Neo Mastercard, the Secured Card earns cash back on everyday spending with an ‘average’ of 5% at partners, a 15% welcome bonus on the first purchase at some partners, and a minimum of 0.5% across all purchases (partners or non-partners).

Conclusion: Keep an Eye on Neo Financial

The Neo Credit Card is an interesting new financial product, one that is unlike any other in Canada in terms of its reward structure. Neo emphasizes brand loyalty and local partnerships. This is great for small businesses, but for us in the miles & points game, all that matters is the value we can extract from being a cardholder. On that front, it’s difficult to determine where Neo belongs in my wallet. 

As someone who doesn’t do much local shopping, or have any brand loyalty (I’ll go wherever is cheapest/most convenient), the Neo card isn’t quite right for me. The big brands that are included in Neo’s partnerships (eg. Safeway, Shopper’s Drug Mart, Amazon) don’t earn high enough rates for me personally.

However, I could certainly see this card being a winner for certain demographics that shop frequently at local boutique retailers. It could also be a good card to use for some large online purchases, particularly if stacked with a cashback portal like Rakuten Canada.

However, as Neo is backed by some very savvy entrepreneurs and venture capitalists, and has continued to add new products and features at an aggressive pace (Savings, Secured Card, and now Invest), I would definitely keep an eye on what the future holds for Neo Credit Card and Neo Financial. I can see them becoming a challenger across the fintech spectrum much like Wealthsimple has become with their Wealthsimple Cash card, Invest, Trade, Crypto, and Tax products.  

Frequently Asked Questions