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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 CD accounts.
If you're shopping around for a savings account, 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 Rates
Newtek Bank's savings rates go up to 5.58% variable APY — considerably higher than national averages. The bank currently offers high-yield savings accounts, fixed-rate CDs, and variable-rate CDs.
Newtek Bank Savings Options
Newtek Bank High-Yield Savings Account
You might like the Newtek Bank Personal High Yield Savings Account if you're searching for a straightforward online savings account. It pays a high interest rate and doesn't have common bank fees. You also can open an account with $0.
Newtek Bank Personal High Yield Savings Account
Start saving
Newtek Bank, FDIC Insured.
Insider’s Rating
4.25/5
Fees
no monthly service fee
Annual Percentage Yield (APY)
5.25%
Minimum Opening Deposit
$0
Pros
- No minimum opening deposit
- No monthly service fees
- No minimum balance requirements
Cons
- No physical locations
Product Details
- Minimum balance of $0.01 needed to earn
- Interest compounded daily and deposited monthly
- FDIC insured
Newtek Bank CDs
If you have at least $2,500, Newtek Bank fixed-rate CDs may be worth exploring.
Here's a look at the interest rate offered on each fixed-rate CD term:
Term | APY |
6 months | 5.35% |
1 year | 5.15% |
18 months | 5.00% |
2 years | 4.75% |
3 years | 4.50% |
4 years | 2.00% |
5 years | 2.00% |
Newtek Bank also offers a Newtek Bank 24 Month Variable Rate CD paying 5.58% variable APY. This CD rate could potentially rise or drop during the term, depending on market conditions.
Newtek Bank Savings Account Features
Current Newtek Bank Savings Rates and How They Compare
Newtek Bank's high-yield savings account offers a 5.25% APY — much higher than the 0.45% APY national average and on par with or higher than the best savings account rates currently being offered.
Newtek Bank's fixed-rate CD rates range from 2.00% to 5.35% 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.
Newtek Bank also offers a 24-month variable-rate CD paying 5.58% variable APY. Usually, CDs pay the same interest rate for the entire term length. A variable-rate CD can fluctuate, though. Newtek Bank's variable rate CD may change depending on the 1-month U.S. Treasury constant maturity rate.
Minimum Balance Request and Monthly Fees
The Newtek Bank Personal High Yield Savings Account has no monthly service fee.
Newtek Bank CDs do not have monthly fees, but there are early withdrawal penalties to be aware of. 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.
Online and Mobile Banking Experience
On the Newtek Bank mobile app you'll be able to view your transaction history, make mobile check deposits, and initiate transfers.
Newtek Bank's mobile app has received 4.4 out of 5 stars on the Google Play store, and 4.6 out of 5 stars in the Apple store. The app has limited customer ratings overall, though. In comparison, some of the best mobile banking apps have well over 50,000 customer ratings in the Google Play and Apple stores.
How Newtek Bank Savings Works
Account Opening Process
Newtek Bank is an online-only financial institution. You can apply for Newtek savings accounts or CDs through the website. You'll need to share general details about yourself, like your Social Security number, date of birth, email, and address. The application also notes that Newtek may ask for documentation to verify your identity, like a driver's license.
Funding Your Account and Transfers
Newtek's savings account requires a $0 deposit, the bank's fixed-rate CDs have a $2,500 minimum opening deposit, and the variable-rate needs a minimum of $50,000. The variable-rate CD also has a maximum deposit limit of $220,000.
To add money to your account, you'll have to make a transfer from an external bank account.
Customer Support Options
Newtek Bank offers customer support through live chat or by phone. Representatives are available 8 a.m. to 8 p.m. ET on weekdays.
Newtek Bank Savings Review Pros and Cons
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Newtek Bank Savings Review FAQs
Is the Newtek savings account legit?
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 my money safe in a Newtek Bank Savings account?
Yes, your money is safe in a Newtek Bank Savings Account because the bank is federally insured by the FDIC. The FDIC insures up to $250,000 in an individual bank account.
What is the current interest rate (APY) for Newtek Bank Savings?
Newtek Bank savings rates range between 2.00% to 5.58% APY depending on what type of account you open and how much you deposit.
Has Newtek Bank had any customer service issues?
Newtek Bank has 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 0.25% to 5.10% APY. It offers a wider array of CD types, including bump-up CDs and no-penalty CDs, which Newtek Bank does not offer.
Synchrony Bank Review
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.
UFB Direct Review
Is Newtek Bank Savings Right For You?
Newtek Bank might be right for you 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 Business 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 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 TwitterorLinkedIn.
Banking Editor
Sophia Acevedo is a banking editor at Business Insider. She is a banking expert, and has about three years of experience reviewing banking products and analyzing savings and CD trends.Sophia oversees Personal Finance Insider's banking vertical. She edits and writes bank reviews, banking guides, and banking, budgeting, and savings articles for the Personal Finance Insider team.Sophia joined Business Insider in July 2021. Sophia is an alumna of California State University Fullerton, where she studied journalism and minored in political science. She is based in Southern California.You can reach out to her on Twitter at @sophieacvdo or email sacevedo@businessinsider.com.Read more about how Personal Finance Insider chooses, rates, and covers financial products and services »Below are links to some of her most popular stories:
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Evelyn He is a Compliance and Operations Associate on the Personal Finance team to ensure content accuracy and editorial independence so readers get up-to-date and objective financial advice.The compliance team's mission is to provide readers with fact-checked and current stories so they can make informed financial decisions. The team also works to minimize risk for partners by ensuring language is clear, precise, and fully compliant with regulatory and partner marketing guidelines that align with the editorial team.
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