Neo Credit Card Review 2024

• Earn 5% average cash back at over 10,000 Neo retail partners (earn rates vary by offer and partner)
• Earn at least 0.5% cash back guaranteed on net purchases after meeting a minimum spending requirement (up to $50 per month)
• Collect cash back with a virtual card while waiting for the physical Neo Credit card to arrive
• Receive 2.25% interest on cash back redeemed into a Neo Money savings account
• Freeze and unfreeze credit cards in a single tap and protect accounts with FaceID, two-factor authentication and a fingerprint lock
• Choose from multiple monthly rewards subscriptions for purchase security, extended warranty, travel insurance, fitness and mindfulness classes, and extra cash back of up to 2%
• Choose between a free Base plan and a paid Premium Plan

The Neo Credit card is a cash back credit card that earns up to 6% cash back—with no annual fee. Cardholders can choose between two plan options: a free Base plan and a Premium subscription plan offering higher cash back rates. You can also boost your earning power by adding subscription-based perks on rewards categories such as travel, mind and body, food and drink, and mobile and personal protection. Members also receive a monthly top-up of cash-back rewards when net purchases fall below 0.5% cash back. Rewards can be redeemed at any time, for any amount, instead of waiting for an annual credit or a minimum balance threshold like some other cash back cards.

This structure makes Neo Credit benefits more flexible, but there are comparable no annual fee cards that have basic insurance and benefits built in.

• Earn an average of 5% cash back at Neo partner locations (0.5% cash back guarantee)
• Purchase one or multiple rewards subscriptions for additional rewards or cash back
• Two plan options: free Base plan and paid Premium plan

Earning Rewards

Earn rates also vary by partner, offer and perks subscription, so it takes a bit of extra work to figure out which merchants will help maximize rewards. Everyday cash back has a maximum $300 category spending per month.

In general, you can earn up to:

• 6% on restaurants and bars
• 4% on your favourite apps, including Netflix, Disney+, Crave, Apple, Uber, Lyft, SkipTheDishes, DoorDash and UberEats
• 3% on gas and groceries
• 0.5% on all other purchases

Here’s how the rewards compare between the two plan options:

Base Plan (free)

• 1% cash back on gas and groceries (maximum $300 category spending per month)
• No cash back on all other purchases
• 5% average cash back at Neo partner restaurants, cafes and bars
• 3% cash back at Neo partner streaming services
• 3% cash back at Neo partner ride sharing services
• 3% cash back at Neo partner food delivery services
• 2% cash back at Neo partner retail (online and in-store) purchases
• Personalized insights
• Chatbot and phone support

Premium Plan ($4.99 per month, first month free)

• 3% cash back on gas and groceries
• 0.5% cash back on all other purchases
• 6% average cash back at Neo partner restaurants, cafes and bars
• 4% cash back at Neo partner streaming services
• 4% cash back at Neo partner ride sharing services
• 4% cash back at Neo partner food delivery services
• 3% cash back at Neo partner retail (online and in-store) purchases
• Credit score monitoring
• Purchase Protection, up to $1,000 per occurrence, $10,000 total liability maximum for up to 90 days from purchase in the event of loss, theft or damage
• 24/7 legal assistance
• $2,500 group life insurance
• Personalized insights
• Chatbot, phone and priority support

You can also add these subscription-based perks to boost your rewards-earning potential:

The Travel perk ($4.99 per month) includes:

• 2% cash back on all foreign transactions
• Priority Pass airport lounge access at over 1,300 locations worldwide
• SmartDelay free airport lounge access when registered flights are delayed by more than an hour
• 1.5x cash back boost at all hotel travel partners
• Comprehensive travel insurance coverage from Chubb including emergency travel medical, trip cancellation, car rental protection, flight delay and more

The Mind & Body perk ($9.99 per month) includes:

• 1.25X more cash back at gyms, fitness classes, yoga studios, recreational centres, vitamin and supplement suppliers and wellness practitioners
• Free subscription to Headspace Plus
• One free fitness class per month
• Hundreds of FitOn PRO workouts including unlimited access to premium music and personalized meal plans

The Food & Drink ($1.99 per month) includes:

• 1.25X more cash back at partner restaurants, cafes and bars
• 1.25X more cash back from food delivery partners

The Mobile & Personal Protection perk ($9.99 per month) includes:

• Protection for your mobile device against damage, breakdown and theft (up to two claims per year with $49 deductible and $500 limit)
• Dashlane Premium subscription for secure password management
• $1 million in fraud, ransomware and social engineering coverage provided by CyberScout, a TransUnion company
• 24/7 support hotline and credit monitoring services

Redeeming Rewards

Redeeming Neo Credit rewards is much more straightforward than the earning structure. Access cash back at any time to pay credit card statements, deposit into a savings account or buy merchandise online at the Neo Store. There are no requirements for a minimum balance or waiting for an annual statement credit to redeem rewards like some other cash back credit cards.

Rewards Potential

To determine the rewards potential of the Neo Credit card, we reviewed the bonus categories and calculated what the average Canadian household spends annually in those areas. Forbes Advisor Canada uses data from multiple sources in order to determine credit card spending averages across various categories.

Forbes Advisor Canada estimates the total annual credit card spending to be $26,460. Based on that amount, the value of total rewards collected is estimated to be $577.22 in potential net annual earnings. These returns are in line with more established cash back credit cards, like the TD Cash Back Visa Infinite Card and the CIBC Dividend Visa Infinite Card.

• Cash back guarantee: Receive a top-up of 0.5% cash back on net monthly purchases that fall below a 0.5% earn rate (limited to $50 per month)
• Subscription-based rewards: Choose one or multiple rewards packages for boosted cash back, insurance and app subscriptions
• Interest-free payments: Pay for purchases over time and keep payments interest free for up to six weeks when you pay installments on time
• Flexible credit limits: Between $500 and $10,000
• A range of credit scores are accepted

Interest Rates

• Regular APR Min: 19.99%
• Regular APR Max: 29.99%

Fees

• Cash Advance: 22.99%-31.99%
• Foreign Transaction Fee: 2.5%
• Annual Fee: $0

To apply for the Neo Credit card, you must live in Canada, have a Canadian photo ID, and be the age of majority in your province or territory.

Neo Credit vs. Tangerine Money Back Credit Card

The Tangerine Money-Back Credit Card earns up to 2% cash back on purchases in two chosen bonus categories and 0.5% on all other purchases wherever Mastercard is accepted. This card has no annual fees and also comes with basic insurance for purchase assurance and extended warranty protection.

The Neo Credit card limits its everyday cash back on gas and groceries to 1% or 3% and earns higher rewards (depending on your plan) at a broader selection of partners. A monthly subscription gives access to additional perks in categories such as travel and personal protection.

Neo Credit vs. Simplii Financial Cash Back Visa

The Simplii Financial Cash Back Visa is a no-fee cash back card that earns up to 4% cash back. Higher earn rates have annual spending caps, which drops the average cash back to 0.5%. The Neo Credit card has an average earn rate of 5% cash back without any spending limits.

Even though Neo Credit’s highest rewards are only available at retail partners, this card has a stronger earning potential since it’s not limited by specific bonus categories or annual caps.

Neo Credit vs. TD Cash Back Visa Infinite Card

The TD Cash Back Visa Infinite Card comes loaded with perks and earns up to 3% on groceries, gas and recurring bill payments. This card comes with a $139 annual fee, and the accelerated earn rate drops to 1% cash back after hitting the $15,000 annual spending limit.

The Neo Credit card only offers benefits through monthly subscriptions, but there are no annual fees or spending limits on cash-back rewards.

When determining a rating for individual credit cards, the Forbes Advisor Canada editorial team factors in an exhaustive list of data points. For this card, the scoring model used takes into account factors such as, but not limited to, rewards rates and categories, fees, welcome bonuses, 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.

The Neo Credit Card is worth considering if you already (or plan to) shop with Neo retail partners. Consider choosing another cash back card if you want to earn cash back everywhere or prefer additional perks to be included.

Related: Canada’s Best Credit Cards