Is Neo Financial Canada's best challenger bank? Full review of cash back, fees, savings rates, and the Neo Mastercard.
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Try KOHO Free — Code 45ET55JSYANeo Financial is a Calgary-based fintech company founded in 2019 by former SkipTheDishes executives. It offers a no-fee bank account, a high-interest savings account, and a cash back Mastercard — all managed through a single mobile app. Neo Financial is backed by major investors including Valar Ventures (Peter Thiel's firm) and has grown to over one million users in Canada.
Neo Financial partners with ATB Financial and Concentra Bank to hold customer deposits, both of which are CDIC-insured institutions.
| Plan | Monthly Fee | Cash Back at Neo Partners | Savings Rate |
|---|---|---|---|
| Standard | $0 | Up to 4% | 2.25% |
| Premium | $4.99 | Up to 5% | 3% |
Neo Financial's signature product is its Mastercard credit card, which earns cash back at thousands of partner retailers across Canada. At Neo partners — which include grocery stores, restaurants, gas stations, and retail shops — you can earn 4–5% cash back. On all other purchases, you earn a base rate of about 0.5%.
The card is available as both a secured credit card (useful for building or rebuilding credit) and an unsecured card. The secured version requires a security deposit of $50–$100 and helps you build a positive credit history through regular, on-time payments.
Neo Money is Neo Financial's no-fee bank account. It comes with a Mastercard debit card, unlimited Interac e-Transfers, and access to a high-interest savings component paying 2.25% on the standard plan. There are no minimum balances and no monthly fees. You can direct deposit your paycheque to Neo Money and use it as your primary account.
The Neo savings rate of 2.25% (standard) to 3% (premium) is competitive compared to most banks in Canada, though it's slightly lower than EQ Bank's offering. Interest is calculated daily and paid monthly. There are no withdrawal limits and no minimum balance requirements.
| Feature | Neo Financial | KOHO (Free) |
|---|---|---|
| Monthly Fee | $0 (or $4.99) | $0 |
| Card Type | Mastercard credit or debit | Prepaid Visa |
| Best Cash Back | Up to 4% at partners | 1% groceries/transit |
| Credit Building | Yes (secured card) | Yes (KOHO Credit) |
| Savings Rate | 2.25% | Up to 5% |
| Welcome Bonus | Varies | $20 (code 45ET55JSYA) |
Neo Financial is best for Canadians who shop regularly at Neo partner retailers and want to maximize cash back on everyday spending. The credit card is particularly valuable for people building or rebuilding credit history. If you don't have strong credit and need a secured card option, Neo Financial is one of the best choices in Canada.
For pure no-fee banking without a credit card component, KOHO offers a simpler experience and a stronger savings rate. Use code 45ET55JSYA to get $20 when you sign up for KOHO.
Yes. Neo Financial is regulated in Canada and partners with CDIC-member institutions. Their app uses 256-bit encryption, two-factor authentication, and automatic fraud monitoring. Customer deposits are insured up to $100,000 per depositor category through their banking partners.
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