I dont know honestly if anybody uses boosted cashback as it doesnt make sense keeping balance in everyday account only. If the boosted cashback would allow balance included in high interest savings account as well then it would make sense for boosted cashback as the users would have a reason to put money in high interest savings account or even include TFSA/RRSP if possible then the user can take advantage of boosted cashback and Neo benefit from the extended applications used by the user. Let me know what everybody thinks of this. Any feedback is welcome
I share your opinion mate. I feel like cash would generate more return elsewhere.
Another idea is to copy EQ bank approach where they automatically acrue interest on your current account, so that you don’t have to open a separate savings account
Definitely agree on that, only reason I haven’t done the boosted cashback yet is because of that. If they ever included HISA into the mix, I’d definitely go full on into it.
@GrantLahring_Neo @Yeni-Neo This boosted cashback feature should be updated i am sure there are more users who have asked for this feature.
Its a great idea to implement, the main question is this: will this benefit Neo long-term and would their investors see that as an opportunity?
I personally think that it would be prudent for Neo to give their rewards and cash back system an over haul to make it more feature rich for the client and increase the incentive to use the savings feature of the account, as it stands presently being from Newfoundland the system in place presently simply does not offer enough to entice members here to use NEO
I personally carry the $5k so I can have boosted. I am not someone who keeps tabs on the exact ins and outs and with mortgage, bills, car payments, etc. I like to leave a cushion in there for when the bills auto-withdraw. With being close to the $5k anyways I just keep it there to take advantage of the boost.
I also keep a cushion but based upon my situation at least, I haven’t found it best to leave it in Neo to take advantage of the boosted cashback. I’ve utilized a difference financial institution for this.
I agree 100%!
I only keep my money in other HISA accounts, first because I am getting a promotional interest rate and second because I don’t have any additional benefit to keep it at Neo.
I would love to see boosted cash bank based on your HISA.
Hey @Jasont @darochag , just to clarify, you would keep your cushion in a different FI that has a higher savings rate and then have all your direct withdrawl bills coming out of that account? Would you then use NEO just for the savings accounts? Would love to hear more about how that works for you. If that is what you do - would you have transfers from this other FI into NEO savings accounts etc?
Hey Matt! For me personally, I have my non Neo accounts through WealthSimple. I also invest with them via a TFSA with a self managed portfolio.
I considered moving some money to Neo so I could take advantage of the boosted cashback but it honestly doesn’t make sense for me. Based upon my math, I can likely make the same or more through my interest I accrue.
I use Neo for the World Elite Mastercard, I use Wealth Simple for Chequing and Savings. For me personally, I keep a $5k cushion and an emergency savings account. My job is salary and commission bonuses so each month can vary for income which is why I like to have that cushion. I’ve yet to need to use it but should a bad month come, it’s no stress, the money is put aside and I’m not touching my personal savings.
Everyone’s situation is different, depending on yours this might not make sense to you. Due to the monies I have sitting in WealthSimple at any given time, it hasn’t made sense mathematically for me to move money to Neo to get boosted cashback.
I usually keep my emergency fund in a savings account at another FI, and my cash flow in a cash account that earns some interest (Wealthsimple). I don’t use a Neo Savings account right now because I am getting a promotional interest rate in another FI.
Another feature that can go along with this if TFSA,RRSP,FHSA is brought into Neo is everytime some money is added to either of TFSA,RRSP,FHSA without disclosing name of the user it can show something like this (you are 10th with regards to money saved keep saving more to climb up the ranks) I am sure there would be a ton of demand for this feature. Also this feature can be extended to Savings account for now so that it encourages people to save more money. What do you guys think @GrantLahring_Neo @Yeni-Neo @Jamie_Neo
Gamifying it is always an option. Personally, I think gamifying financial products is tricky because rich people tend to win pretty easily and it can be discouraging for everyone else. This is also my issue with Wealthsimple’s Monthly Millionaire promo.
Agree with what you are saying but i am not talking about programs like wealthsimple’s monthly millionare promo. Lets say for neo savings account everytime a user adds money in the neo savings account Neo nudges the user with something along the lines of this year you have added “x” amount in the account and you are currently “y” in the rankings of the amount people added in the account for this year.
I think we’re on the same page. Just imagine you work your ass off and you scrimp and safe and you put in $1,000… and then get told that you’re in the bottom 10%.
I guess you could limit it to situations where people will be flattered, i.e. when they’re in the top 10%. Or like you said, you could compete against yourself (“you’ve saved $10,000 this year”) is actually great. We’re hoping to start implementing little celebrations for those milestones soon.