CDIC coverage | Neo Financial | Discussion forum

Alexandra said
I don't see Neo Savings on the CDIC list. I checked under Neo as well as Concentra. They say they are CDIC insured though  

It's there, Alexandra, as Concentra Bank. Maybe you just need to scroll down a little further, past some of the acronyms?

Alexandra said
I see that Loonie. There is a line listing Concentra. But nothing indented under saying "Neo Financial". And nothing under Neo by itself.

Such as under:
CIBC
cibc
renaissance
simply
Wood Gundy

or
Canadian Western Bank
CWB
CWB Fin.
Motive

Maybe I am not seeing what you are though.  

https://www.cdic.ca/your-coverage/list-of-member-institutions/#CC (look for Concentra)

https://www.concentra.ca/pages/article.aspx?gp=About%20Us&sub=News%20Item&itemnum=173

https://financialpost.com/pmn/press-releases-pmn/business-wire-news-releases-pmn/neo-financial-teams-up-with-concentra-bank-to-offer-neo-savings-the-first-canadian-fintech-to-offer-a-cdic-eligible-high-interest-savings-account

Alexandra said
I see that Loonie. There is a line listing Concentra. But nothing indented under saying "Neo Financial". And nothing under Neo by itself.

Such as under:
CIBC
cibc
renaissance
simply
Wood Gundy

or
Canadian Western Bank
CWB
CWB Fin.
Motive

Maybe I am not seeing what you are though.  

CDIC members aren't required to publish a CDIC register of eligible deposit products anymore.

However, this case is a bit different, since Concentra Bank does not "own" Neo Financial. Indeed, the customer relationship is with Concentra Bank and the customer, with Neo Financial essentially playing a dual role of direct-to-consumer originator of deposits to Concentra Bank, for which it earns either an upfront and/or ongoing fee, and technology app provider. Thus, these deposits aren't originated by Concentra Bank, but once you sign up with Neo Financial, you become a Concentra Bank customer. Now if Neo Financial were to switch banks, I suspect your Concentra Bank accounts would remain open, as would your Neo Financial account; however, you'd no longer be able to access them from Neo Financial. Concentra would likely set you up with direct MemberDirect access to your accounts as part of that hypothetical migration.

Hope that helps,
Doug

Norman1 said
Neo Financial is not really a financial institution that holds deposits. They are more like a deposit broker who markets rebranded deposits of Concentra Bank.

Concentra Bank's deposit register does list the Neo-branded savings account:

…

Non-Registered Account - Credit Union 45 Day Evergreen Deposit Account

Non-Registered Account - Neo Savings Account

Non-Registered Account - Trust 45 Day Evergreen Notice Deposit

…

  

Ah, interesting that they are one of the institutions that still publishes a deposit register. But yeah, Peter, this is the reason if we do add Neo Financial to the chart, it should be added as:

"Neo Savings Account" from Concentra Bank as the financial institution, linking to its product page.

Concentra Bank's mainline HISA would be linked as "High Interest Savings Account" from Concentra Bank, linking to its applicable product page.

Cheers,
Doug

RE Concentra, CDIC search page says...

Concentra Bank is a CDIC member institution. Eligible deposits are protected up to $100,000 per category.

Concentra Trust is a subsidiary of Concentra Bank and a CDIC member in its own right. Eligible deposits of up to $100,000 per category are protected separately from deposits at Concentra Bank.