Quick overview of the Neo World Elite® Mastercard
Neo, a hotshot challenger bank aimed at enticing the tech-savvy away from the Big 6 banks, is venturing out of the world of no-fee credit cards and into the upper-echelon market, with its $125 annual fee Neo World Elite® Mastercard.
Like its no-fee little sibling, the Neo Mastercard, the Neo World Elite® Mastercard is squarely targeted at cash back enthusiasts. Despite the “World” in its title, which usually indicates the status of a travel card, Neo’s World Elite® doesn’t really offer anything in the way of travel benefits (besides out-of-province medical insurance – and the details on that are sparse).
Who’s the Neo World Elite Mastercard for?
Essentially, it’s great for those who prefer cash back to points and want a stress-free way of saving money. Let me explain:
I have a friend who’s terrified of investing. She’s also not super fond of debt and stays as far away from credit card churning as she can. She loves a daily driver cash back card, which she uses to add to the thousands she keeps in cash in her EQ high-interest savings account (I had to bully her to get it out of stock standard chequing).
This kind of person exists, and if you’re the type who doesn’t mind keeping a whack of cash on hand, the Neo World Elite® Mastercard could be up your alley, so you can reap the highest tier rewards. But first you have to be eligible. This card has a high eligibility requirement, asking for $80,000 personal income or $150,000 household. It's kind of steep for a cash back card with limited perks.
Pros and cons
Pros
-
World Elite Perks: Comprehensive insurance coverage through Mastercard
-
Approval Process: Quick approval and instant use of a virtual card
-
Lucrative rewards: Up to 7% cash back when adding Neo Premium
Cons
-
Top rewards cost more: Neo Premium is a $9.99 per month cost for the extra 2% back
-
Income requirements: High income requirements prevent many from accessing the card
Neo World Elite® Mastercard welcome bonus
The Neo World Elite® Mastercard does not currently provide a welcome bonus.
How to earn cash back with the Neo World Elite® Mastercard
Neo claims the Neo World Elite® Mastercard is the best cash back card in Canada, and the numbers seem to back that up on first inspection. The card earns up to 5% cash back on grocery purchases, with that rate rising up to an extra-impressive 7% back with Neo's Premium service.
Neo's Premium service is an add-on that lets Neo cardholders pay monthly for additional cash back on purchases. This add-on feature costs $9.99 per month and adds benefits like credit score monitoring, extended warranty and purchase protection, balance protection, priority customer support, and, of course, extra cash back rewards.
Here’s how the bonus categories with the Neo World Elite® Mastercard stack up:
These impressive earning rates are capped, however. At $1,000 each on gas and groceries per month, $500 on recurring bills, and $3,300 on all else.
How to redeem cash back
Redeeming cash back from Neo World Elite® Mastercard is a fairly straightforward process. You can access your cash back at any time to pay off your credit card balance, deposit rewards it into a savings account or purchase merchandise or gift cards online at the Neo Store. Best of all, unlike other cash back cards, there are no minimum balance requirements or the need to wait for an annual statement of credit to redeem your rewards.
Key benefits of the Neo World Elite® Mastercard
Neo Financial states that the Neo World Elite® Mastercard is a game-changer in the rewards credit card landscape. That's because the card works with a Neo Everyday account, the fintech's savings account. With funds in your Neo Everyday savings account you earn more rewards, with the more funds the more rewards.
From a high level, let’s say you like Neo, but you don’t like keeping a tonne of cash, so you keep zero dollars with them. In that case, your World Elite® card nets you 5% on groceries, 3 on gas and 1% on everything else.
But those numbers get better with the more cash you have at Neo. At $5,000, you’re making 6% on groceries and 3.5% on gas, and at $10,000 you’re making 7% and 4%, respectively. At the high end, if you shop and drive lots, you’re making very competitive cash back – up to a point.
Because of course there’s a catch (as their calculator reveals). Those high interest rates for gas and groceries drop to 1% over $1,000 spent monthly on each. And, given the cost of both those categories, it’s possible to blow past the spending threshold.
The remaining bonuses are pretty basic, even limited. There’s extended purchase warranty, car rental insurance and the aforementioned out-of-province medical coverage. With the Neo World Elite®, you’re in it for the cash back, or not at all.
Neo World Elite® Mastercard insurance coverage
For a card with a steep annual fee, the Neo World Elite® Mastercard is decidedly light on insurance coverage:
- Auto rental collision and damage: Covers rentals cars valued up to $65,000 for up to 48 consecutive days
- Emergency medical insurance: Get covered for up to $1,000,000 for trips of up to 14 days, for those who are 60 years of age or younger
- Extended warranty: This doubles the manufacturer’s warranty, up to an additional year
- Purchase protection: Protection for up to 90 days from date of purchase
- Flight delay: Get up to $500 if your flight is delayed
- Lost/delayed baggage: Get up to $1,000 for delays of six hours or longer
- Trip interruption: Coverage for up to $5,000 per trip
- Trip cancellation: Coverage for up to $5,000 per trip
- Hotel/motel burglary insurance: Get covered for up to $1,000
Secured credit card option
Neo also offers a secured credit card to applicants seeking to establish a positive credit history. The Neo Secured World Elite® Mastercard requires a $200 security deposit to open, with the deposited amount equal to the credit line with the card. Need more credit? Simply deposit more funds.
How does the Neo World Elite® Mastercard compare?
Neo World Elite® Mastercard vs. CIBC Dividend Visa Infinite
CIBC Dividend® Visa Infinite* Card
4.1
10% back†
Welcome offerGood
Suggested credit scoreGet a first-year annual fee rebate for you and up to three Authorized Users† and earn 10% cash back for the first 4 statements on net purchases of up to $3,000†.
Pros
-
First-year annual fee rebate
-
10% cash back welcome bonus up to $3,000 spend
-
4% cash back on gas, electric vehicle charging and grocery stores
-
2% cash back on transportation, dining and recurring payments
-
High annual spending cap on benefits ($20,000 in bonus categories or $80,000 total)
Cons
-
High income requirement
-
Sparse travel insurance offering
Eligibility
Good
Recommended Credit Score
$60,000†
Required Annual Personal Income
$100,000†
Required Annual Household Income
Recommended Credit Score
Good
Required Annual Personal Income
$60,000†
Required Annual Household Income
$100,000†
4%
cash back on eligible gas, EV charging, and grocery purchases.†
2%
cash back on eligible transportation, dining purchases and recurring payments†
1%
cash back on all other purchases†
10 cents
save up to 10 cents per litre† at participating Pioneer, Fas Gas, Ultramar and Chevron gas stations.†
cash back on eligible gas, EV charging, and grocery purchases.†
4%
cash back on eligible transportation, dining purchases and recurring payments†
2%
cash back on all other purchases†
1%
save up to 10 cents per litre† at participating Pioneer, Fas Gas, Ultramar and Chevron gas stations.†
10 cents
20.99%†
Purchase APR non-Quebec residents†
22.99%†
Balance Transfer Rate non-Quebec residents†
22.99%†
Cash Advance APR non-Quebec residents†
$120
Annual Fee First year rebated. Each additional card is $30 per year, max 3.
Purchase APR
20.99%†
Balance Transfer Rate
22.99%†
Cash Advance APR
22.99%†
Annual Fee
$120
Pros
-
First-year annual fee rebate
-
10% cash back welcome bonus up to $3,000 spend
-
4% cash back on gas, electric vehicle charging and grocery stores
-
2% cash back on transportation, dining and recurring payments
-
High annual spending cap on benefits ($20,000 in bonus categories or $80,000 total)
Cons
-
High income requirement
-
Sparse travel insurance offering
Eligibility
Good
Recommended Credit Score
$60,000†
Required Annual Personal Income
$100,000†
Required Annual Household Income
Recommended Credit Score
Good
Required Annual Personal Income
$60,000†
Required Annual Household Income
$100,000†
4%
cash back on eligible gas, EV charging, and grocery purchases.†
2%
cash back on eligible transportation, dining purchases and recurring payments†
1%
cash back on all other purchases†
10 cents
save up to 10 cents per litre† at participating Pioneer, Fas Gas, Ultramar and Chevron gas stations.†
cash back on eligible gas, EV charging, and grocery purchases.†
4%
cash back on eligible transportation, dining purchases and recurring payments†
2%
cash back on all other purchases†
1%
save up to 10 cents per litre† at participating Pioneer, Fas Gas, Ultramar and Chevron gas stations.†
10 cents
20.99%†
Purchase APR non-Quebec residents†
22.99%†
Balance Transfer Rate non-Quebec residents†
22.99%†
Cash Advance APR non-Quebec residents†
$120
Annual Fee First year rebated. Each additional card is $30 per year, max 3.
Purchase APR
20.99%†
Balance Transfer Rate
22.99%†
Cash Advance APR
22.99%†
Annual Fee
$120
The CIBC Dividend cash back is only $120 per year (first year fee gets waived) and offers 4% on groceries, EV charging and gas – no catches. Then it’s 2% on dining, transportation and recurring payments and 1% on everything else. If you met all the specific preconditions on the Neo World Elite®, you’d still probably fall short given the fee differential and the more varied spending categories of the CIBC card. Plus, there’s a dozen other perks that come with the Dividend cash back card, so it may be worth taking a closer look at.
Neo World Elite® Mastercard vs. BMO Cashback World Elite Mastercard
BMO CashBack® World Elite®* Mastercard®*
4.9
up to 10%
Welcome offerExcellent
Suggested credit scoreGet up to 10% cash back in your first 3 months and the $120 annual fee waived in the first anniversary*.
Expires
Nov 30, 2024
Pros
-
Valuable sign-up bonus
-
High 5% cash back rate on groceries
-
Free roadside assistance
-
Excellent extended warranty and purchase protection terms
Cons
-
Restrictive spending limits for most cash back categories
-
Sign-up bonus structure is head-scratchingly complicated
-
High minimum income requirements
Eligibility
Excellent
Recommended Credit Score
$80,000
Required Annual Personal Income
$150,000
Required Annual Household Income
Recommended Credit Score
Excellent
Required Annual Personal Income
$80,000
Required Annual Household Income
$150,000
5%
Groceries: 5% cash back up to $500 spent per month ($25 in cash back)*
4%
Transit: 4% cash back up to $300 spent per month ($12 in cash back)*
3%
Gas: 3% cash back up to $300 spent per month ($9 in cash back)*
2%
Recurring Bills: 2% cash back up to $500 spent per month ($10 in cash back)*
1%
Everything Else: 1% cash back, unlimited*
Groceries: 5% cash back up to $500 spent per month ($25 in cash back)*
5%
Transit: 4% cash back up to $300 spent per month ($12 in cash back)*
4%
Gas: 3% cash back up to $300 spent per month ($9 in cash back)*
3%
Recurring Bills: 2% cash back up to $500 spent per month ($10 in cash back)*
2%
Everything Else: 1% cash back, unlimited*
1%
20.99%
Purchase APR
23.99%
Balance Transfer Rate
23.99%
Cash Advance APR 21.99% for Quebec residents
$120
Annual Fee annual fee waived in the first year*
2.5%
Foreign Transaction Fee
Purchase APR
20.99%
Balance Transfer Rate
23.99%
Cash Advance APR
23.99%
Annual Fee
$120
Foreign Transaction Fee
2.5%
Pros
-
Valuable sign-up bonus
-
High 5% cash back rate on groceries
-
Free roadside assistance
-
Excellent extended warranty and purchase protection terms
Cons
-
Restrictive spending limits for most cash back categories
-
Sign-up bonus structure is head-scratchingly complicated
-
High minimum income requirements
Eligibility
Excellent
Recommended Credit Score
$80,000
Required Annual Personal Income
$150,000
Required Annual Household Income
Recommended Credit Score
Excellent
Required Annual Personal Income
$80,000
Required Annual Household Income
$150,000
5%
Groceries: 5% cash back up to $500 spent per month ($25 in cash back)*
4%
Transit: 4% cash back up to $300 spent per month ($12 in cash back)*
3%
Gas: 3% cash back up to $300 spent per month ($9 in cash back)*
2%
Recurring Bills: 2% cash back up to $500 spent per month ($10 in cash back)*
1%
Everything Else: 1% cash back, unlimited*
Groceries: 5% cash back up to $500 spent per month ($25 in cash back)*
5%
Transit: 4% cash back up to $300 spent per month ($12 in cash back)*
4%
Gas: 3% cash back up to $300 spent per month ($9 in cash back)*
3%
Recurring Bills: 2% cash back up to $500 spent per month ($10 in cash back)*
2%
Everything Else: 1% cash back, unlimited*
1%
20.99%
Purchase APR
23.99%
Balance Transfer Rate
23.99%
Cash Advance APR 21.99% for Quebec residents
$120
Annual Fee annual fee waived in the first year*
2.5%
Foreign Transaction Fee
Purchase APR
20.99%
Balance Transfer Rate
23.99%
Cash Advance APR
23.99%
Annual Fee
$120
Foreign Transaction Fee
2.5%
The BMO CashBack World Elite Mastercard is our top pick for best grocery and best gas credit card in Canada thanks to its impressive 5% back on groceries up to $500 per month and 3% back on gas and EV charging on up to the $300 per month. The addition of a complimentary membership in Dominion Automobile Association (DAA) –a $69 value – further separates this card from the pack, making it an ideal commuter to family credit card for those who qualify.
And while the BMO card has lower spending caps than the Neo World Elite®, BMO offers a much more robust rewards program, more extensive insurance protections and more features to drive applicants to its ultra-premium cash back card.
Neo World Elite® Mastercard vs. Neo Mastercard
Neo Mastercard
2.2
Fair
Suggested credit scoreto receive the latest news, tips and offers by email
Pros
-
No annual fee
-
Cash back rewards on purchases
-
Even more cash back potential with 10,000 Neo partners
Cons
-
Potentially high APR
-
Tiered cash back rates make it harder to unlock max earn rates
Eligibility
Fair
Recommended Credit Score
Recommended Credit Score
Fair
Up to 4%
Earn up to 4% cashback on gas and groceries, no matter where you pay for them.
Up to 1%
Earn up to 1% cashback on everything else
Up to 15%
Earn up to 15% cashback at participating partners with new offers added regularly.
Up to 5%
Visit any of Neo's 10,000 partners and earn an additional average of 5% cashback on top of your everyday cashback.
Earn up to 4% cashback on gas and groceries, no matter where you pay for them.
Up to 4%
Earn up to 1% cashback on everything else
Up to 1%
Earn up to 15% cashback at participating partners with new offers added regularly.
Up to 15%
Visit any of Neo's 10,000 partners and earn an additional average of 5% cashback on top of your everyday cashback.
Up to 5%
19.99% - 29.99%
Variable APR 19.99%-24.99% for Quebec residents
22.99% - 31.99%
Cash Advance APR 22.99%-28.99% for Quebec residents
$0
Annual Fee
Variable APR
19.99% - 29.99%
Cash Advance APR
22.99% - 31.99%
Annual Fee
$0
Pros
-
No annual fee
-
Cash back rewards on purchases
-
Even more cash back potential with 10,000 Neo partners
Cons
-
Potentially high APR
-
Tiered cash back rates make it harder to unlock max earn rates
Eligibility
Fair
Recommended Credit Score
Recommended Credit Score
Fair
Up to 4%
Earn up to 4% cashback on gas and groceries, no matter where you pay for them.
Up to 1%
Earn up to 1% cashback on everything else
Up to 15%
Earn up to 15% cashback at participating partners with new offers added regularly.
Up to 5%
Visit any of Neo's 10,000 partners and earn an additional average of 5% cashback on top of your everyday cashback.
Earn up to 4% cashback on gas and groceries, no matter where you pay for them.
Up to 4%
Earn up to 1% cashback on everything else
Up to 1%
Earn up to 15% cashback at participating partners with new offers added regularly.
Up to 15%
Visit any of Neo's 10,000 partners and earn an additional average of 5% cashback on top of your everyday cashback.
Up to 5%
19.99% - 29.99%
Variable APR 19.99%-24.99% for Quebec residents
22.99% - 31.99%
Cash Advance APR 22.99%-28.99% for Quebec residents
$0
Annual Fee
Variable APR
19.99% - 29.99%
Cash Advance APR
22.99% - 31.99%
Annual Fee
$0
A no-annual fee, high-rewards credit card, the Neo Mastercard is designed for a wide variety of Canadians. Whether you are a frequent shopper looking to earn cash back on your purchases, especially gas and groceries, or someone who wants the flexibility to redeem rewards in various ways, this credit card has something to offer.
Is the Neo World Elite® Mastercard worth it?
I struggle to think of anyone who’s fishing in the $125 credit card pond who’d be truly drawn to the Neo World Elite Mastercard. Its lack of perks, high-income requirements, complicated cash back tier system and lacklustre rewards at lower-mid levels (and caps on cash back even at the highest) combine to make this a pretty uninspiring product offering from Neo.
Eligibility requirements for this Neo Mastercard
You'll need to be a Canadian resident of at least the age of majority for your province or territory when applying for the Neo World Elite® Mastercard. Additionally, you'll need a Good credit score and a minimum income of $80,000 personal or $150,000 household for approval.
Cam is a content marketer with a passion for saving, financial independence, and pulling off elaborate credit card point schemes. He has worked in Fintech and Finserve (specifically Group Retirement) and loves researching and writing about finance.
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