Neo Financial is one of the neo-banks that have recently launched in Canada.
Partnering with ATB for Mastercard credit cards and Concentra for the Savings account, Neo Financial recently took over the Hudson’s Bay credit card, giving it a foothold in the country.
Unlike traditional banks offering cash back rates for a spending category (grocery stores, gas stations, drugstores, etc.), Neo has chosen to partner directly with specific retailers.
The cash rate will vary and may be amplified by some partner offers. But you will earn at least 1% cash back with this card.
For a limited time, you can earn $25 cash back when you apply for the Neo Mastercard.
Neo began by partnering with retailers in Western Canada (particularly in the Calgary area, where Neo Financial is headquartered). This was followed by nationwide retailers such as Shell, Esso and Shoppers Drug Mart.
With these retail partners, you can get different types of rewards.
A partner retailer may offer you a specific discount on your first in-store purchase. For example, Frank and Oak is offering 7% off your first purchase (up to $20 off):
Then, a partner retailer can offer you a discount for repeated purchases in their store. Like with EQ3 offering $33 off if you make 2 purchases of $500 or more:
Finally, the most classic cash back is the one you get every time you buy from the partner retailer. For example, when you make purchases at the SAQ, you can get a 3% cash back on all purchases (up to $10 off):
You have to browse the map within the mobile application to find the most interesting cash backs.
Here are some examples from this map:
- 3% cash back at partner restaurants and bars
- 3% cash back at the SAQ
- 3% cash back at Dollarama
- 3% cash back at Best Buy
- 3% cash back at Mondou
- 2% cash back at Couche-Tard
- 1% cash back at Shoppers Drug Mart
- 1% cash back at Provigo
As a minimum, you will earn 1% cash back with the Neo Mastercard.
At the basic level, called “Essential,” the Neo Mastercard has no monthly fee.
However, it is possible to opt for one of the two monthly plans:
- to increase the cash back you get at partners
- to earn cash back for purchases made at non-partners
With the Plus plan at $2.99 per month, you can get an average increase of 25% in cash back. And you’ll get 1% cash back on all your purchases at non-partners.
With the Ultra plan at $8.99 per month, you can get an average cash back increase of about 50%. And you’ll get 1% cash back on all your purchases at non-partners.
Neo Savings Account
The Neo Money Savings Account is provided by Concentra Bank, a member of CDIC. This means that he is eligible for deposit insurance up to a maximum of $100,000.
With the Neo Money Savings Account, you can:
- pay bills
- make deposits
- send and receive Interac e-Transfers
- get a savings rate of 1.45%.
As always, the savings rate will likely change over time.
At this time, the Neo Money Savings Account is not available in Quebec, but Neo Financial is working on it.
Neo offers an interesting concept with its Neo Mastercard and Neo Savings Account.
The company is still young, and the partnerships are new: it will be interesting to follow it by wishing more transparency, such as the integration of the partners map directly on Neo’s website.
After all, if the company wants to reward its users for local purchases from partners, it is useful to know them before applying for the Neo Mastercard!
Either way, with a welcome bonus of $25 cash back for a no-fee credit card, why not give it a try?