Hi guys! On August 1st, we launched our new Boosted Cashback Levels program where you can increase your cashback rate based on your Everyday account balance.
We want to hear from you, were you aware of the program? Have you tried it yet?
Yes, tried it
No, did not try it yet
Heard about it, but didn’t try it yet
Didn’t hear about it
0voters
What do you guys think of the experience? Take a look at the screenshots below as well and I’d love to hear any feedback you’d have on the UX/UI
I don’t feel this program helps anyone, but those that are more middle to higher class, and you’re forgetting about those that are low income and use your service.
I work full time, make an okay income, but I’m still working pay cheque to pay cheque just to keep up with rent increases, inflation and other expenses. I budget and do my best to try and save, but it’s hard. I joined NEO because your cash back cards and secure credit card.
But now you’re starting to just act like any bank, offering Boost bonuses to those at can actually afford to save large sums. Even your lowest at $1000 is out of reach for many of us struggling day in and day out to make ends meet. But even if I could make your lower tier, it doesn’t offer much. You forgot about your roots of helping those people who actually would love a service like this.
I agree with you HockeyDJ.
I signed on to NEO to build a decent credit rating. I had to get the Secured Card putting in my own money.
I am a pensioner along with my husband, and i cant see us even having the opportunity to use it unless the minimum was dropped. $500?
• Neo everyday account pays 0.10% interest rate so it makes no sense for the users to keep money there beyond what is necessary for very small everyday purchases and any recurring purchases the user may have;
• If you keep your balance close to zero and gave your salary deposited to Neo you will get a boost upgrade notification every time the balance goes up, and you will get a boost downgrade notification every time you transfer the funds to reach close to optimum level which would be closer to zero for an account that pays 0.10%;
• Getting these boost upgrade and downgrade notifications every time and so many of them can be annoying;
• I understand that the app tries to change behaviour to incentivize users to keep more money in their everyday account, but from a users perspective it can feel like a lose-lose scenario. If I kept money in everyday account to increase cashback I would feel bad about the interest I don’t make, but if I don’t keep money there, I would feel bad about missing out on extra cash back. Frequent reminders about changing boost levels don’t help.
It would be nice to have a nudge architecture to nudge users into something that feels good, AND is beneficial to the financial well-being of the user AND is beneficial to the company at the same time.
I have looked at the option of boosting my balance to increase my reward level and here are my initial thoughts.
If my balance is $1,000 my rewards go to 3.5, 3.5 and 1.0 or with a $3,000 balance to 4, 4, and 1. So I would need to maintain that balance to boost my rewards, but that account only pays 0.1% interest. So I think that I am better off keeping my funds in the high interest saving account earning 4% rather than an account that earns nothing to potentially get a reward on CC expenses. $3,000 would earn interest of $120 per year. Keeping it as a minimum balance in order to boost my reward by 1% doesn’t make sense in my mind. I think I would need $12,000 in CC charges just to break even. If I am thinking of this incorrectly, please enlighten me. But that is what I thought when I looked at the plan. Plus Gas and Groceries are max’d at $500 in spending. So cashback potential is limited by that.
Personally, I don’t think this boost is an appealing product, or I shall say, this is not attractive enough for me to shift all my other banks to Neo.
On the other hand, if Neo can provide a very competitive rewards program or cash back system, I don’t mind paying some annual fee to get privileges.
Having a lumpsum saving to get some annual fee rebate sounds more interesting to me.
Great feedback from everyone and appreciate the time taken to share with us, the team is working on some exciting announcements coming shortly!
While the boost level program may not be the most appealing to all as it currently stands, for those still banking with other financial institutions - what WOULD make you shift everything over to Neo? How can we encourage that shift amongst our users? Would be great to hear your thoughts!
I will say Neo needs a really competitive credit card product, with very attractive rewards program. My dream credit card, either, with good earning rates and can convert to other loyalty points (Aeroplan, Cathay Asia miles, other flight/hotel brands), or a really good cash back program with high rewards rate and providing good insurance coverages.
As mentioned in the previous reply, lump sum savings can rebate some annual fees, will be a good incentive for me to keep the money here and not touching it.
I agree with @futandrew on the credit card. Additionally a companion card is a must for me and annual rates/ rewards that are comparable to current WE cards out there.
I currently deal with 3 banks (not entirely sure why) and Neo can do pretty much everything that my primary bank can do, with the exception of cash withdrawals and physical cheques. Not requied very often but it is still a thing.
The hard sell for some might be the lack of face to face connection but that too is becoming a thing of the past. As long as you have a robust support solution that meets customer needs.
I have several annual fee CC now, and I am willing to pay and continue using them, even some of them are not good enough.
Scotiabank Passport VI ($150)- Mainly for no foreign transaction fees and the out of province medical insurance, 6 free lounge per year satisfy my needs too.
RBC Ion+ ($48) + Avion VI ($120) - Very good rewards program, 3x dining, gas, grocery points back, 1:1 converting to Cathay Asia Miles, which sometimes can worth almost 10% cash back on these categories.
Amex Colbalt ($13 per month) - 5x points on dining and groceries, and converting 1:1 to Aeroplan
If Neo can do something cover at least one or two of these key benefits, and try to build a more rewarding system, I will not hesitate to move my funds back to Neo.
Forgot to mention that, no annual fee cash back credit card, Rogers bank World Elite is a great card for fido/rogers customers by providing 3% cash back on EVERYTHING. If people use their services, Neo is absolutely no way to compete with this card.
I love the boosted cashback even if its only for the first few purchases after payday but like others have said the constant notifications sayijg you have/lost the boost is annoying
I did the same math and it’s a great point. When used as intended the boosts are a bad idea…
I did however start using the boosts in a way that makes sense.
I know I’m going to spend X amount on my Neo card and pay it off and the end of the month (I budget strictly). So I just always put the money into Neo at the beginning of the previous month.
Basically if you treat your money account as a float account for the credit card it keeps your boosts high and while it would be much better off invested, that money was never going to see my investment account anyways since I’m spending it. (If that makes sense).
However I would gladly accept more value from Neo or a grace period or something.
