Neo Money Card Review 2024

• Earn unlimited cash back from 10,000+ partners
• Earn a minimum of 0.5% cash back
• Receive cash back instantly
• No annual fee
• Earn 1% interest on every dollar in your account
• Free everyday transactions
• No minimum deposit requirements
• ATM access everywhere that Mastercard is accepted
• Use the Auto-Save feature to set up automatic savings
• Ability to set up automate bill payments
• All deposits are eligible for CDIC insurance protection up to $100,000

The Neo Money card functions similarly to a prepaid credit card, but allows you to access the funds in your savings account. In this regard, it is a handy tool. Cardholders can earn cash back at over 10,000 retail partners and, at the same time, earn 1% interest on every dollar in their account. As a prepaid card, it definitely has more perks than a debit card—and many credit cards, too.

That being said, while the cash back perks are a big advantage, earning them isn’t always easy. Unlike credit cards that often have specific categories where you earn more, at grocery stores or restaurants, for example, the Neo Money card’s cash back earnings depend on the specific retailer. While there are more than 10,000 partner retailers, not all of them have high cash back rates and not all of them are easily accessible to cardholders, especially if you don’t live in a big city. This can make it difficult to earn cash back for some individuals, though the card does guarantee a minimum of 0.5% cash back.

• Earn unlimited cash back instantly
• Earn 1% interest on every dollar in your account
• No annual fee or monthly transaction fees

Earning Rewards

The Neo Money card is a cash back card, so you’ll earn rewards on your cash back purchases. Rather than have earning categories, Neo has specific retail partners and the amount of cash back you can earn depends on the partner. Some examples of Neo partners include Netflix, Sport Chek, Hudson’s Bay and the LCBO.

In general, Neo notes that cardholders will earn an average 5% cash back every month; however, there is no limit to how much cash back you can earn. Each partner has varying rates but not every location offers cash back, so you will need to double-check.

Redeeming Rewards

One of the biggest advantages of the Neo Money card is that cardholders will see their cash back immediately. There’s no wait time. This is a huge draw compared to credit cards which, at best, make you wait a month for the cash back. Many only pay out annually.

Rewards Potential

Based on average Canadian spending, Forbes Advisor Canada estimates this card could earn $124.23 in rewards value per year after the annual fee, which is pretty decent for a no-annual fee card. However, keep in mind this is reflective of Canadians who shop with partner brands and are in a location where these eligible partner brands are easily accessible. Someone who lives in the countryside or a small town rather than a big city will likely find it more difficult to get good value out of this card.

• Allows you to automate your savings using the Auto-Save feature
• Allows you to set up automated payments for your bills

Interest Rates

• Regular APR Min: N/A
• Cash Advance APR: N/A
• Balance Transfer APR: N/A

Fees

• Cash Advance Fee: N/A
• Balance Transfer Fee: N/A
• Foreign Transaction Fee: 2.5%
• Annual Fee: $0
• Any Other Fees: N/A

Neo Money Card vs. Wealthsimple Cash

The Wealthsimple Cash card is another prepaid card on the market for Canadians. Like the Neo Money card, there are no annual or monthly fees to worry about. These cards are also similar in that they both offer cash back and earn interest. With Wealthsimple Cash, you’ll earn 1% cash back on all purchases and up to 4% interest. While the cash back may be lower than some deals you will find through Neo, keep in mind that you’ll earn 1% everywhere, not just at specific retailers.

Another perk that makes the Wealthsimple Cash card stand out is that there are also no foreign transaction fees, making it easy to use abroad or when shopping online in a different currency.

Neo Money Card vs. EQ Bank Card

Another option to consider is the EQ Bank Card, which again is a prepaid card with no annual or monthly fees. EQ Bank cardholders earn 2.5% (compared to 1%) interest on every dollar in their account; however, the cash back is only 0.5%, which is significantly higher than what is offered by some of the Neo Money partners. Again, if you shop regularly with the Neo Money card you’ll need to consider if the partners are within your area. If not, then it’s worth going with the EQ Bank Card that allows you to earn 0.5% cash back on everything without having to worry about shopping somewhere specific.

Neo Money Card vs. KOHO Extra Prepaid Mastercard

The final comparison is to the KOHO Extra Prepaid Mastercard. It’s also a prepaid card that offers cash back on purchases and interest earned on savings. However, unlike the Neo Money card, the KOHO Extra Prepaid Mastercard comes with a monthly fee of $9.

There is a promotional earn rate of 4.5% interest on the first $1,000, after which the interest rate drops to 3%, which is still 0.75% higher than the Neo Money card. As for cash back, it ranges from 0.5% to 2% depending on the type of purchase. Plus, there are no foreign exchange fees. You can also add a credit building feature for an additional $7 per month.

The increased interest rate and ability to earn cash back on all purchases are great features of the KOHO Extra prepaid Mastercard. However, the fee is pretty hefty when you compare these features to other free, prepaid card options.

When determining a rating for individual credit cards, the Forbes Advisor Canada editorial team factors in an exhaustive list of data points. With this card, the scoring model used takes into account factors such as, but not limited to, rewards rates and categories, fees, welcome bonus, and other benefits and features. Keep in mind what may be best for some people might not be right for you. Conduct informed research before deciding which cards will best help you achieve your financial goals.

For a prepaid card, the Neo Money card has a lot of draws. The promise of an average of 5% cash back every month is pretty enticing, especially for a no-annual (or monthly) fee card. Plus, the bonus of earning 1% interest on every dollar of your balance is a pretty decent deal. However, as seen in the comparisons above, there are other prepaid cards that offer the same features at competitive rates.

Where Neo Money card has the potential to stand out is with the cashback partners as there can be some pretty decent earn rate there. That being said, because it is retailer-specific you would need to be someone who not only has these partner retailers in their area but also shops frequently at them over other merchants and retailers. Realistically, this isn’t very descriptive of most Canadians. Chances are prepaid cards such as Wealthsimple Cash or the EQ Bank cards, even though they have smaller cash back earn rates, will be more lucrative in the long run because the cash back applies to everything.

Related: The Best Credit Cards in Canada