Newtek Bank Savings Review 2024
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Newtek Bank is an online bank owned by NewtekOne, a small business lender. The bank offers business checking, business savings, personal savings, and personal certificate of deposit (CD) accounts.
If you're shopping around for a savings account or CD, Newtek Bank could be a smart choice. Here's what you need to know about Newtek Bank's savings rates before making your decision.
Newtek Bank Savings Review
Newtek Bank's savings rates go up to 5.67% variable APY — considerably higher than national averages. The bank currently offers high-yield savings accounts, fixed-rate CDs, and variable-rate CDs.
Newtek Bank High-Yield Savings Review
Newtek Bank's high-yield savings account offers a 5.25% APY — much higher than the 0.46% APY national average and on par with or higher than the best savings account rates currently being offered.
Newtek's savings account requires a $0 deposit, and there is no monthly service fee or transaction fees. You can open an account in as little as two minutes online.
Newtek Bank Personal High Yield Savings Account Start saving Newtek Bank, FDIC Insured.
Insider’s Rating A five pointed star A five pointed star A five pointed star A five pointed star A five pointed star Feesno monthly service fee
Annual Percentage Yield (APY)5.25%
Minimum Deposit Amount$0
Pros- Check mark icon A check mark. It indicates a confirmation of your intended interaction. No minimum opening deposit
- Check mark icon A check mark. It indicates a confirmation of your intended interaction. No monthly service fees
- Check mark icon A check mark. It indicates a confirmation of your intended interaction. No minimum balance requirements
- con icon Two crossed lines that form an 'X'. No physical locations
- Minimum balance of $0.01 needed to earn
- Interest compounded daily and deposited monthly
- FDIC insured
Newtek Bank Fixed Rate CD Review
Newtek Bank's fixed CD rates range from 2.00% to 5.50% APY, depending on the term. Its CD rates — on all terms — are higher than national averages, with its highest rates offered on 6-month CDs. The minimum deposit required to open any Newtek Bank fixed-rate CD is $2,500.
There are early withdrawal penalties for these CDs. If you remove money from your account prior to its maturity, you'll owe 30 days to 180 days of interest, depending on the term.
Here's a look at the interest rate offered on each term:
Term | APY |
6 months | 5.50% |
1 year | 5.15% |
18 months | 5.20% |
2 years | 4.75% |
3 years | 4.50% |
4 years | 2.00% |
5 years | 2.00% |
Insider’s Rating A five pointed star A five pointed star A five pointed star A five pointed star A five pointed star Annual Percentage Yield (APY)2.00% to 5.50%
Minimum Deposit Amount$2,500
Pros- Check mark icon A check mark. It indicates a confirmation of your intended interaction. High interest rate
- Check mark icon A check mark. It indicates a confirmation of your intended interaction. Variety of CD terms
- Check mark icon A check mark. It indicates a confirmation of your intended interaction. Standard early withdrawal penalties
- con icon Two crossed lines that form an 'X'. $2,500 minimum opening deposit
- Early withdrawal penalties: For terms between 30 days and less the 1 year, the penalty is 90 days of simple interest; for terms of 1 year or more, the penalty is 180 days of simple interest
- Interest is compounded daily and deposited monthly
- FDIC insured
Newtek Bank Variable Rate CD Review
Newtek Bank also offers a variable-rate 24-month CD with 5.67% variable APY. To get this rate, you'll need to deposit at least $50,000. The account also has a maximum opening deposit of $220,000.
Interest on Newtek Bank's variable-rate CD is compounded daily and credited monthly. Keep in mind, though: The interest you receive is not set in stone. Rates on variable CDs fluctuate based on market conditions, so unlike with traditional CDs, there's no guaranteed return.
Newtek Bank 24 Month Variable Rate CD Start saving Newtek Bank, FDIC Insured. Insider’s Rating A five pointed star A five pointed star A five pointed star A five pointed star A five pointed star Annual Percentage Yield (APY)5.67% variable
Minimum Deposit Amount$50,000
Pros- Check mark icon A check mark. It indicates a confirmation of your intended interaction. High interest rate
- con icon Two crossed lines that form an 'X'. Penalty varies depending on principal deposit
- con icon Two crossed lines that form an 'X'. $50,000 minimum opening deposit
- con icon Two crossed lines that form an 'X'. $220,000 maximum deposit
- Rate adjusts monthly according to market conditions
- Early withdrawal penalty is 1% of principal plus accrued interest that has not been credited (maximum 30 days)
- Interest compounded and credited monthly
- FDIC member
Newtek Bank Savings Review Pros and Cons
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Newtek Bank Savings Review FAQs
What is the savings rate at Newtek Bank? Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.Newtek Bank savings rates range between 2.00% to 5.67% APY depending on what type of account you open and how much you deposit.
Is the Newtek savings account legit? Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.Though it is an online-only institution with no physical locations, Newtek Bank is a legitimate bank. It is insured by the Federal Deposit Insurance Corporation and owned by small business lender NewtekOne.
Is Newtek Bank a good bank? Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.Newtek Bank is a good bank. It boasts an A+ rating from the Better Business Bureau, indicating trustworthy business practices.
How Newtek Bank Savings Compares
Newtek Bank Savings vs. Synchrony Savings
Newtek Bank savings rates are higher than those offered at Synchrony Bank. Whereas Synchrony Bank's high-yield savings accounts max out at 4.75% APY, Newtek's is much higher at 5.25% APY.
Synchrony Bank's CD rates range from 2.25% to 5.30% APY. It offers a wider array of CD types, including bump-up CDs and no-penalty CDs, which Newtek Bank does not offer.
Newtek Bank Savings vs. UFB Direct Savings
UFB Direct savings rates are on par with Newtek Bank's at 5.25% APY. Both accounts require no maintenance fees and have no minimum deposit.
Though UFB Direct does not offer CDs, as Newtek Bank does, it does offer high-yield money market accounts you can use to save for the future. The money market account offers a 5.25% (as of 11/16/2023) APY and comes with check-writing privileges.
The bottom line: Newtek Bank is a good option if you're looking for a savings rate that is on par and competitive with the best savings account rates currently available. It can also be a smart choice if you want a variable-rate CD that will allow you to take advantage of trends in savings rates, or if you want a high-rate fixed CD.
Why You Should Trust Us: How We Reviewed Newtek Bank Savings Accounts
To review Newtek Bank's savings accounts, we used Personal Finance Insider's bank account methodology and CD methodology. We rate products using a scale of 0 to 5 stars. In general, we look at ethics, customer support, and mobile apps when rating an institution. Interest rates, minimum deposit, and monthly fees also play a role.
Aly J. Yale Aly J. Yale is a freelance writer, specializing in real estate, mortgage, and the housing market. Her work has been published in Forbes, Money Magazine, Bankrate, The Motley Fool, The Balance, Money Under 30, and more. Prior to freelancing, she served as an editor and reporter for The Dallas Morning News. She graduated from TCU's Bob Schieffer College of Communication with a focus on radio-TV-film and news-editorial journalism. Connect with her on Twitter or LinkedIn. Read more Read less Evelyn He Compliance Associate Evelyn He is a compliance associate at Business Insider who supports the Personal Finance Insider team. Personal Finance Insider is Business Insider's personal finance section that incorporates affiliate and commerce partnerships into the news, insights, and advice about money that Business Insider readers already know and love.The compliance team's mission is to provide readers with stories that are fact-checked and current, so they can make informed financial decisions. The team also works to minimize risk for partners by making sure language is clear, precise, and fully compliant with regulatory and partner marketing guidelines that align with the editorial team.Before joining Business Insider, she served in various legal and compliance roles in different industries, including the legal and pharmaceutical industries. Evelyn obtained her M.S. degree in Marketing at Boston University in 2022. Prior to combining and consolidating her knowledge of law and business, she spent one year finishing 1L courses at Suffolk University Law School to further her legal knowledge. She has also completed MBA business law courses while working on her Bachelor of Business Administration in Management at the University of Massachusetts, Amherst. Outside of work, she enjoys spending time with her 14-year-old Shih Tzu named Money, and her 5-year-old Bichon named Tibber. Read more Read less Top Offers From Our Partners
Betterment Cash Reserve Account New Customer Offer: Earn 5.50% APY when you open your first cash account with $10 deposit. Terms apply. A tooltip *Current promotional rate; annual percentage yield (variable) is 4.75% as of 7/31/23, plus a .75% boost available as a special offer with qualifying deposit. Terms apply; if the base APY increases or decreases, you'll get the .75% boost on the updated rate. Cash Reserve is only available to clients of Betterment LLC, which is not a bank, and cash transfers to program banks are conducted through clients’ brokerage accounts at Betterment Securities. **The national average savings account interest rate is reported by the FDIC (7/17/23) as the average annual percentage yield (APY) for savings accounts with deposits under $100,000. Start SavingEditorial Note: Any opinions, analyses, reviews, or recommendations expressed in this article are the author’s alone, and have not been reviewed, approved, or otherwise endorsed by any card issuer. Read our editorial standards.
Please note: While the offers mentioned above are accurate at the time of publication, they're subject to change at any time and may have changed, or may no longer be available.
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