The Neo Money account pays a variable interest rate set by Concentra Bank, which holds Neo deposits. The rate has ranged from 2.25% to 4%+ since Neo’s 2019 launch and changes with the Bank of Canada overnight rate and any active promotional offers.
Interest accrues daily on the full balance and is paid monthly. There is no minimum balance and no tiered rate structure — every dollar earns the same rate regardless of the balance held.
Neo Money Account: Rate Overview
| Feature | Details |
|---|---|
| Interest rate | Variable — check Neo app for current rate |
| Accrual | Daily on closing balance |
| Payment | Monthly |
| Minimum balance to earn | $0 |
| Rate tiers | None (flat rate on all balances) |
| Rate set by | Concentra Bank |
| Deposit protection | CDIC — up to $100,000 |
| Registered accounts (TFSA/RRSP) | Not available |
Savings Rate Comparison: Neo vs Digital Banks
| Institution | Rate (approx., 2026) | Registered Accounts |
|---|---|---|
| EQ Bank Notice Savings | 3.50–4.25% | Yes (TFSA, RRSP) |
| KOHO (Everything/Premium plans) | Up to 4–5% | No |
| Neo Money | ~2.25–4%+ | No |
| Wealthsimple Cash | ~3–4% | Yes (TFSA, RRSP) |
| Tangerine (promo) | Up to 4–6% (intro) | Yes (TFSA, RRSP, RESP) |
| Tangerine (standard) | 0.10–1.00% | Yes |
| Simplii Financial | ~0.40% | Via GICs only |
All rates are variable and subject to change. Always verify the current rate in the institution’s app or website before making decisions.
Standard Rate vs Promotional Rate
Neo periodically offers promotional rates for new customers or limited time periods. The promotional rate is typically 0.5–1.5 percentage points above the standard rate and lasts 3–6 months.
| Rate Type | Who It Applies To | Duration |
|---|---|---|
| Promotional | New customers or specific offer windows | 3–6 months (varies) |
| Standard | All customers after promotional period | Ongoing |
The promotional rate closes the gap with EQ Bank temporarily. New Neo account holders who open during a promotional period benefit most. After the promotional period, the standard rate applies and the EQ Bank advantage typically reasserts.
The Registered Account Gap
The most important savings consideration for Neo is what it does not offer: registered accounts.
| Account Type | Tax Treatment | Neo | EQ Bank | Tangerine |
|---|---|---|---|---|
| TFSA | Tax-free growth and withdrawals | ✗ | ✓ | ✓ |
| RRSP | Tax-deferred growth, deductible contributions | ✗ | ✓ | ✓ |
| FHSA | Tax-free for first home purchase | ✗ | ✗ | ✗ |
| RESP | Tax-deferred, government grants (CESG) | ✗ | ✗ | ✓ |
| Non-registered | Interest taxable annually | ✓ | ✓ | ✓ |
A Canadian in the 40% marginal tax bracket earning 3.5% on $25,000 in a non-registered Neo account pays approximately $350 in income tax on the $875 of annual interest. The same $25,000 in an EQ Bank TFSA at 4.0% earns $1,000 tax-free — an effective after-tax advantage that far exceeds the nominal rate difference. For any savings beyond an emergency fund or short-term goal, the Neo non-registered account is the wrong vehicle compared to a TFSA.
How Neo’s Rate Is Set
Neo deposits are held at Concentra Bank. Concentra Bank sets the interest rate in response to Bank of Canada overnight rate movements, competitive conditions among digital banks, and its own cost of funds. When the Bank of Canada raises or lowers its overnight rate, Neo’s rate typically follows within a few weeks — though the pass-through is not automatic or guaranteed.
Neo’s rate does not match the Bank of Canada overnight rate directly. It reflects Concentra Bank’s willingness to pay for deposits, which competes with EQ Bank, Wealthsimple, and others in the high-interest savings market.
Best Use of the Neo Money Account
The Neo Money account’s interest rate is a secondary benefit — the primary reason to hold Neo is cash back at partner merchants. A rational approach:
- TFSA capacity → use EQ Bank or Tangerine (registered accounts; better rates on a tax-sheltered basis)
- RRSP capacity → use EQ Bank or Tangerine
- Emergency fund (non-registered) → EQ Bank, Wealthsimple Cash, or Neo are all competitive; compare current rates
- Operating float for partner spending → Neo Money account makes sense here; keep enough balance for upcoming partner purchases, earn interest on the float