Review: Neo World Elite Mastercard

neo world elite mastercard review featured image

It’s always a rare occasion to see a new credit card launch in Canada and I love seeing how financial institutions can innovate to meet the needs of the Canadian consumer. Neo Financial has been at the forefront of new credit card launches, and as of November 1st, 2024, they have once again launched a new credit product that will be very interesting to Canadians.

The Neo World Elite Mastercard offers cash back earning rates that rival many of their top competitors and comes with an additional opportunity to increase earning rates even further by meeting certain requirements. On top of their base cashback rates, you can also take advantage of their partner network where you can earn an additional average of 5% cashback at any of their 10,000 partners across Canada. 

Let’s take a look at everything that you need to know about the Neo World Elite Mastercard.

Overview

Welcome Bonus

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

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

Neo World Elite Mastercard
Apply Now Learn More Earn $60 in FlyerFunds upon approval.
Neo World Elite Mastercard

The Neo World Elite Mastercard offers a base earning rate of 5% cash back on groceries, 4% on recurring bills, and 3% on gas purchases, with the option to increase earning rates by holding money in a Neo Everyday account.

Check out our Neo World Elite Mastercard review for more details.

BONUS
$0 cash back
MINSPEND
$0
NET VALUE
$-125+
ANNUAL FEE
$125
FOREX FEES
Yes
EXPIRY

The Neo World Elite Mastercard has an annual personal income requirement of $80,000 or an annual household income requirement of $150,000.

Earning Rates

The Neo Financial World Elite Mastercard earns cash for all eligible purchases made on the card at the following rates:

  • 5% cash back for every dollar spent on grocery purchases (up to $12,000 in spend per calendar year).
    • Cardholders with a minimum balance of $5,000 in a Neo Everyday account will receive 6% cash back on grocery purchases.
    • Cardholders with a minimum balance of $10,000 in a Neo Everyday account will receive 7% cash back on grocery purchases.
  • 4% cash back for every dollar spent on recurring bills (up to $6,000 in spend per calendar year).
    • Cardholders with a minimum balance of $5,000 in a Neo Everyday account will receive 4.5% cash back on recurring bills.
    • Cardholders with a minimum balance of $10,000 in a Neo Everyday account will receive 5% cash back on recurring bills.
  • 3% cash back for every dollar spent on gas purchases (up to $12,000 in spend per calendar year).
    • Cardholders with a minimum balance of $5,000 in a Neo Everyday account will receive 3.5% cash back on gas purchases.
    • Cardholders with a minimum balance of $10,000 in a Neo Everyday account will receive 4% cash back on gas purchases.
  • 1% cash back for every dollar spent on all other eligible purchases.

Once the spending cap is reached in a specific category, all future purchases in that calendar year will earn 1% cash back.

Should you choose to hold a minimum balance in your Neo Everyday account to earn an elevated cash back rate, ensure you do the math to check that you are receiving the best return on keeping your money in this account as opposed to parking it in a high interest savings account

For example, let’s showcase a situation where a Neo World Elite Mastercard cardholder is going to reach the spending cap on each bonus category while also holding a minimum balance of $10,000 in their Neo Everyday account at all times for an entire year, unlocking the highest earning rates. Ignoring the base earning rates, their elevated cash back categories would earn them:

  • An additional 2% cash back on $12,000 in grocery spend = $240 cash back
  • An additional 1% cash back on $6,000 in recurring bills spend = $60 cash back
  • An additional 1% cash back on $12,000 in gas spend = $120 cash back
  • A total of $420 additional cash back as a result of the elevated earning rates

After maximizing all earning categories and reaching the caps, the cardholder would have earned an additional $420 cash back over the base earning rates. However, they will have held $10,000 in their Neo Everyday account for the entire year, removing the possibility of using that money elsewhere for greater return. 

This means that even if you knew you would maximize all bonus spending categories each year, it could still be a better idea to keep your $10,000 in another financial vehicle if you can earn greater than $420 on $10,000, or a 4.2% return. 

On the other hand, perhaps you keep a liquid emergency fund of $5,000 or $10,000 already, and keeping it within a Neo Everyday Account would be immaterial to you. There is always an opportunity cost to holding money in an account and everyone’s financial situation is different, so look into all of your options before committing.

Annual Fee

The Neo World Elite Mastercard has an annual fee of $125. This is a fairly standard annual fee for a World Elite Mastercard in Canada.

Benefits

Insurance Coverage

The Neo World Elite Mastercard offers a suite of insurance coverages:

  • Extended warranty
  • Purchase protection
  • Auto rental collision loss damages
  • Comprehensive travel insurances

View the Neo Financial Insurance Certificate page for additional details, including terms and conditions for eligibility.

Redeeming Cash Back with the Neo World Elite Mastercard

Cash back earned on the Neo World Elite Mastercard is instantly deposited into a ‘Rewards Wallet’ which can then be redeemed towards a statement credit, transferred to your Neo Everyday account, or used for merchandise on the Neo Store.

A minimum balance of $1.00 in cash back must be earned before a redemption can be made.

Comparable Credit Cards

While the Neo World Elite Mastercard has definitely joined the ranks of high-earning cash back credit cards in Canada, there are a few other strong credit card options that are worth considering to ensure you find the right card for your personal finance needs.

Scotiabank Gold American Express Card

The Scotiabank Gold American Express card is a close contender as it earns 6 Scene+ Rewards points at Empire banner grocery stores, 5 Scene+ Rewards points on all other grocery purchases, and 3 Scene+ Rewards points on gas, daily transit, rideshare, and select streaming services.

Scotiabank Gold American Express Card
Apply Now Learn More
Scotiabank Gold American Express Card

The Scotiabank Gold American Express card earns Scene+ Rewards points and gives cardholders the opportunity to earn 5x Scene+ points on grocery, restaurant, and entertainment purchases. This card charges no foreign exchange fees.

Check out our Scotiabank Gold American Express card review for more details.

BONUS
45,000 Scene+
MINSPEND
$7,500
NET VALUE
$450+
ANNUAL FEE
$120 (FYF)
FOREX FEES
No
EXPIRY
Dec 31, 2024

The accelerated earning rates do have a combined spending cap of $50,000 per calendar year which is very generous, and any purchases past that cap will earn 1 Scene+ Rewards point per dollar spent.

Scene+ Rewards points are worth at least 1 cent per point when redeemed and can be used towards redemptions such as groceries, alcohol, and travel purchases. While this loyalty program may not be as simple as cash back to understand, it is definitely one of the easiest and one that we recommend all Canadians get familiar with if they want to maximize rewards.

American Express Cobalt Card

The American Express Cobalt card earns 5 Membership Rewards points for all food and drink purchases (including groceries), 3 Membership Rewards points on streaming services, and 2 Membership Rewards points on gas, transit, and rideshare purchases.

American Express Cobalt Card
Apply Now Learn More
American Express Cobalt Card

The American Express Cobalt card earns Membership Rewards points and gives cardholders the opportunity to earn 5x Membership Rewards on eligible restaurant, food delivery, and grocery store purchases.

In 2024, we selected this card to receive the award Best Credit Card for Grocery Purchases.

Check out our American Express Cobalt card review for more details.

BONUS
15,000 Membership Rewards
MINSPEND
$9,000
NET VALUE
$174+
ANNUAL FEE
$156
FOREX FEES
Yes
EXPIRY

There is a bonus category spending cap of $2,500 per month for all purchases at the 5x earning rate.

The value of an American Express Membership Reward point is difficult to determine as they are best used for transferring to hotel loyalty and frequent flyer program partners. If you are more travel-focused and want to accrue valuable Air Canada Aeroplan points or Marriott Bonvoy points, the American Express Cobalt card may be a better fit than a card that offers cash back.

BMO CashBack World Elite Mastercard

The BMO CashBack World Elite Mastercard is the closest cash back competitor as it offers 5% cash back on grocery purchases, 4% back on transit purchases, 3% cash back on gas purchases, and 2% cash back on recurring bill payments.

BMO CashBack World Elite Mastercard
Apply Now Learn More Earn $75 in FlyerFunds upon approval.
BMO CashBack World Elite Mastercard

The BMO CashBack World Elite Mastercard earns cash back and offers cardholders the opportunity to earn up to 5% cash back on all grocery purchases. As a result, for 2024 we selected this card for the award for Best Cashback Credit Card for Grocery Purchases.

Check out our BMO Cashback World Elite Mastercard review for more details.

BONUS
$250 cash back
MINSPEND
$2,500
NET VALUE
$250+
ANNUAL FEE
$120 (FYF)
FOREX FEES
Yes
EXPIRY
Jun 1, 2025

While this is very similar to the Neo World Elite Mastercard’s base earning rates, the BMO CashBack World Elite Mastercard actually has lower bonus category caps as it only will bonus up to $500 in groceries, up to $300 in transit, up to $300 in gas, and up to $500 in recurring bill payments per statement period.

Having the caps split up into monthly allotments and at lower overall amounts, for example only bonusing $6,000 in grocery spend per calendar year versus the Neo World Elite Mastercard which bonuses up to $12,000 in grocery spend is definitely a detractor from this credit card.

Conclusion

The Neo World Elite Mastercard definitely fits a niche in the Canadian market, and it’s obvious to see the value that cardholders will receive by adding this card to their wallet thanks to the outsized earning rates on many popular spending categories.

While it may be a more attractive product for those already involved in the Neo Financial ecosystem, more cash back credit cards with high earning rates are always a plus for those consumers who don’t want to understand miles and points reward systems.

Josh Bandura

Josh Bandura

Co-Founder at Frugal Flyer
Josh has been involved in the miles and points game since 2015 but has scaled up his knowledge and points earning potential in recent years. With a consistent attitude of "min-maxing" in many aspects of his life, Josh has transferred this mindset over to the miles and points game. Always looking for the next big opportunity, he aims to share content on a variety of topics including his travels, miles and points, and most importantly, how to get the most out of your credit cards

Previous

Frugal Flyer’s Black Friday Week: Elevated Credit Card Rebates!

Miles & Points Expiration Rules: Must Know Details for Canadians

Next

Leave a Comment

All comments are moderated according to our comment policy. Your email address will NOT be published.


This site uses Akismet to reduce spam. Learn how your comment data is processed.