Neon: everything you need to know about this digital bank

If you’re interested in fintechs and digital banks , you’ve probably heard of the now defunct Banco Neon . The financial institution was an option for those who did not want to pay so many fees when using a banking service.

Banco Neon was closed definitively by the Central Bank in December 2019. But, in fact, it concerns fintech Neon Payments SA, which also offers a digital account, credit card and investments.

From now on, you will understand the difference between the bank and Neon Payments. Let’s start?

Contents hide ]

  • 1What is Neon?
  • 2Has Neon Bank gone bankrupt?
  • 3What is it like to open a Neon account?
  • 4How to deposit money into Neon account?
  • 5What are the Neon Digital Account Fees?
  • 6What is the difference between Neon and other digital banks?
  • 7What are the benefits of the Neon card?
  • 8Is the Neon Credit Card Worth It?
  • 9What about investments?
    • 1Purpose Application
    • 2Free Investment
  • 10 Is itworth investing in Neon?
  • 11How to invest in a digital management company?

What is Neon?

Neon Payments SA is the name of fintech founded in 2016 by Pedro Conrade. Its forerunner is a payment company called Controlly.

In the beginning, it teamed up with Banco Pottencial in order to offer a complete digital account. Thus, the merger was renamed Banco Neon, but kept operations separate from fintech .

It can be classified as a digital bank because it offers similar services to competitors Nubank , Original, C6 etc.

These digital banks do not charge annuity and account opening fees. The business’s focus is to earn a percentage on each purchase transaction and interest on the cards.

Like its competitors, Neon has been expanding its operations. In addition to a digital account for Individuals, investments and credit cards without annuity, it also offers an account for Legal Entities.

Recently, it started offering loans to customers. On the site Reclame Aqui , Neon’s score is 8.2 — considered good. Among 5,337 complaints, 5,254 were answered.

On Google Play, the application has more than four stars in ratings made by 215,000 users, out of a total of five.

The B ank Neon went bankrupt?

In May 2018, the Central Bank closed Banco Neon (formerly Banco Pottencial) for irregular management. Then, in December 2019, it canceled the authorization that the financial institution still had to operate.

The people affected were those who had CBDs. However, the guarantee of the Credit Guarantee Fund (FGC) was activated and returned the account holders’ money within 14 days.

Already Neon Payments SA , which was separated from the business, was not affected and continues to operate normally .

Back in 2018, Neon entered into a partnership with Banco Votorantim (BV). So, he started to take care of the checking account and investments offered by fintech .

From then on, the clients of the former Banco Neon were migrated to Votorantim.

Founded in 1988 by José Ermírio de Moraes, this institution was focused on offering banking services to companies. With Neon, it also started to work in the Individuals segment.

What is it like to open a Neon account?

The digital account that the institution offers is 100% online and partially free .

To open an account you need to:

  • download the bank app on your mobile (Android or iOS);
  • inform name and CPF;
  • make an initial deposit to activate the account — which is not a fee, as the money is available to be used later.

In this process, it is necessary to take a selfie and photo of the identity document. In this way, the institution can recognize the user .

Also, she does not ask for proof of income or address. The only requirement is to be over 18 years old.

Neon is free, however, to accept or refuse registrations according to its interest. According to the Foregon card comparison website, an average score is required when obtaining a fintech card .

When the account is approved, the user receives a bank slip to make the initial deposit. Here, the discharge can be completed at any bank or lottery.

After making the deposit, it only takes a few hours for the cards to appear in the Cards tab of the application.

At this moment, all app functions are released, including password creation. From there, just go to the Cards tab, click on Physical Card and Create Password.

Once the account is approved and the automatic deposit completed, fintech automatically starts the card production process and sends it to the customer’s address.

Initially, a debit card will be sent , but if there is credit pre-approval, the plastic will also have this function.

Even if the credit card is not approved at the first moment, it is possible to request a new analysis through the app every 30 calendar days.

How to deposit money into Neon account?

Neon does not have physical agencies. In other words, all operations must be carried out through the institution’s application or website. But then how is it possible to deposit money into the account?

It’s simple, through payment of a bank slip generated in the app itself or sent by email . It is also possible to opt for transfers via TED or DOC to the digital bank account. Transfer data is found within the app, under the My Neon tab.

To pay your credit card bill, just generate a bank slip in the app. The function is available on the Credit tab. Just click on Pay the Invoice and then on the Generate Boleto option.

Payment slips paid take up to two business days to be entered into the account. But the Central Bank’s instant payment system — the PIX — which goes into effect on November 16, 2020 , will make these payments much faster.

Transfers are expected to be made within 10 seconds . In fact, Neon has already been approved by the Central Bank to operate the payment method.

In other words, fintech customers will be able to use the PIX within the app. Individuals will have no cost when making transfers through the new system.

What are the Neon Digital Account Fees?

The digital account does not have an opening, maintenance or closing fee . She offers:

  • no annual credit card;
  • free transfer between Neon accounts;
  • free transfer to other banks;
  • free deposit via bank slip;
  • 1 free withdrawal per month on the Banco24Horas network.

As for the other fees, they are:

  • R$ 6.90 for other withdrawals in the Banco24Horas network;
  • 4% + IOF on the value of each international purchase.

For Legal Entities, the maintenance of an account, debit card and virtual card remains free. When issuing a bank slip, a fee of R$2.90 per transaction is charged and the transfer cost via TED is R$3.50 .

It is also possible to receive the salary through the Neon account. However, there is no possibility to create a joint fintech account .

What is the difference between the Neon and other digital banks?

What differentiates Neon from other fintechs is the loyalty of those who use the card frequently.

The Neon+ mode, for example, is available to customers who make at least 10 purchases with the Neon card per month . Debit or credit card transactions are valid , both in physical and virtual format.

It is necessary to request activation of Neon+ through the app. All operations in the modality are free, regardless of frequency.

What are the benefits of the Neon card?

The Neon card is indicated for its ease and for those who want to better control their finances .

Among the main benefits offered are:

  • fee-free debit card;
  • zero annual credit card;
  • virtual credit card;
  • automatic debit of the invoice;
  • card and account monitoring through the app.

The card with debit and credit function is physical. With it, it is possible to make purchases in cash or in installments, in Brazil or abroad, and also make withdrawals from Banco24Horas cashiers.

The FinTech also offers a debit card and virtual credit specific to online shopping. Your goal is to decrease cheats . This is because it is generated within the application and your data is stored there.

If you have the credit function released in the virtual version, it is possible to purchase in installments, which are added to the physical card bill.

Is Neon Credit Card Worth It?

The credit card offered by Neon is international and has a Visa brand. There are two versions, both in the debit and credit versions:

  • physical — for on-site purchases on small machines;
  • virtual — for online shopping and payment for subscription services like Spotify and Uber.

While the physical credit card takes a few days to be delivered, the virtual credit card can already be used once the function is approved.

In the case of international purchases, the rate is 4% of the purchase amount , plus the Financial Operations Tax (IOF) of 6.38%.

Please be aware of the fees that will be charged if you choose to pay the bill in installments or use revolving credit.

According to fintech ‘s own website , in installments of the invoice, interest of 12.9% per month is charged . Already in the revolving interest applied are 13.9% per month. In addition, the fine for late payment of the invoice is 2% of the balance due.

To order the card, you must first open a digital fintech account . The credit function is requested by the app and may or may not pass the review. There are no fees for issuing the card .

What about investments?

Neon offers three types of investment, all in fixed income and with a minimum investment of R$10 .

It can be done in daily liquidity CDBs , issued by Votorantim bank. In other words, you can withdraw your money at any time, including weekends and holidays.

There are no fees charged on the investment, but there is an income tax on the redemption . If it is done in less than 30 days, there is also a charge of IOF proportional to the amount redeemed and the period invested.

CDBs are guaranteed by the FGC for up to R$ 250,000 per financial institution and by CPF in case of bankruptcy of the issuing bank.

See below other types of applications offered by fintech .

Purpose Application

The CDB yield is progressive and is between 95% and 101% of the CDI , depending on the application time. Remembering that savings, with the Selic rate at 2% per year, yield only 70% of the CDI.

The minimum yield is valid on applications for up to six months . The maximum is obtained in applications for three years. In this modality, it is necessary to define a daily or monthly amount when investing.

Investment L ivre

The yield is also progressive and is between 95% and 101% of the CDI. The difference is that it is not necessary to make monthly applications .

The idea is for this option to be used as an emergency reserve by customers.

Is it worth investing in Neon?

Neon offers interesting solutions for people who want to get rid of the fees charged by big banks .

In addition, it is an alternative for those who are starting to invest and want to get out of savings . That’s because their applications offer better performance than the passbook.

On the other hand, those who want to make more sophisticated investments need to look for other outlets, such as stock brokers or investment consultants.

Finally, Banco Neon was dissolved, but the functions reserved to Neon Payments SA continued to operate in the market. A financial institution is a good option if you want to set up a reservation and organize your finances in an uncomplicated way .

How to invest in a digital management company?

The Brazilian financial market is one of the most sophisticated in the world, but most of the population does not invest their money. This is justified by the lack of financial education, the custom of always investing in savings — an investment with a low return, especially with the historical drop in interest rates.

To further aggravate the situation, situations in which banks offer other applications at exorbitant rates and with low returns are not rare. This happens in practically all funds, private pensions and CDBs of large banks. Not to mention the brokers who often suggest investments thinking exclusively of the commission of their advisors, leaving aside the return on the portfolio and the benefit for the client.

by Abdullah Sam
I’m a teacher, researcher and writer. I write about study subjects to improve the learning of college and university students. I write top Quality study notes Mostly, Tech, Games, Education, And Solutions/Tips and Tricks. I am a person who helps students to acquire knowledge, competence or virtue.

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