Neo Financial Raises Interest Rate on High Interest Savings Account to 4%

[computergeek541]

A few days ago, Neo Financial raised the interest rate on their high interest savings account to 4.00%.

At Neo Finacial, there is a separate Everyday Spending account and a High-Interest Savings account. The 4.00% interest is only on the High Interest Savings account, while the Everyday Spending pays 2.25% interest. There's no minimum balance for either account, so all funds in either account will earn the advertised rate.

These are no fees for standard everyday transactions and they are unlimited. Both Everyday Spending and High-Interest savings accounts are CDIC insured. Everyday Spending goes through Concentra and High-Interest savings goes through Peoples Bank of Canada.

When it comes to make bill payments or making purchases, only the Everyday Spending account can be used for those. There is a free prepaid Masterdcard available for any customer who requests it. The way that funds have to be transferred from High-Interest Savings to Everyday Banking is a bit of annoyance, but transfers to and from either are unlimited and are also instant.

There are both positives and downsides to Neo Financial's Services, but this could prove to be a good backup to other online banks such as Wealthsimple and EQ Bank.

New Neo Financial customers can receive a $25 cash bonus if certain conditions are met through their new customer referral program (deposit of at least $50 required). That cash bonus for referred customers is also available to those who open a Neo Mastercard (Credit) account. New customers can get $25x2 if opening both a Money and a Credit account.