Thursday, July 25, 2024

Get a [dynamic]NewtekBank-Savings-APY[/dynamic]% APY with a Newtek Bank savings account

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A division of NewtekOne, Newtek Bank, National Association (Newtek Bank N.A.), is an online-only bank that offers banking services to help individuals and businesses multiply their savings. It doesn’t offer personal checking accounts, money market accounts (MMAs), or other banking services like most banks, but you’ll earn higher annual percentage yields (APYs) than many banks offer on their savings accounts and certificates of deposit (CDs). 

All rates and fees are current as of April 22, 2024, and are subject to change.

Newtek Bank

Savings accounts: Earn up to 5.25% APY
Certificates of deposit (CDs): Earn up to 5.55% APY

Pros

  • No minimum opening deposit or minimum balance requirement
  • No monthly service fee
  • High APY on savings accounts

Cons

  • No physical locations
  • No personal checking accounts
  • Only six free withdrawals are allowed on its savings account per monthly cycle

Newtek Bank is suitable for those who want to earn a high APY on their savings. Newtek offers a high-yield savings account and CDs with APYs that beat the national average and those provided by many banks, even the popular ones. Combined with zero charges and the opportunity to create accounts without minimum balance requirements, Newtek will help you maximize your money. The bank also operates online, so if you prefer handling money from your device, consider opening an account with Newtek.

Newtek lacks several banking products. If you want to create an MMA or a checking account that enables you to handle daily transactions, you can’t do that with this bank. That means Newtek Bank is unsuitable if you prefer having all your accounts in one bank. Also, Newtek is online-only, making it unfit if you prefer a brick-and-mortar bank.

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Newtek Bank rates and products

Newtek offers its customers a high-yield savings account and multiple CD options. These accounts have no monthly fees, helping you save even more. Unfortunately, these are the only options for personal banking and a business entity is required to open other types of accounts.

Savings accounts

Newtek’s 5.25% APY makes it one of the best high-yield savings accounts. You can open one without making any deposits and withdraw up to six times for free during each statement cycle. However, you won’t earn interest on your savings account if your account balance is less than a penny at the end of the month.

Newtek Bank savings rates compared to current top rates*

While Newtek is a great option, some institutions offer higher interest rates. Compare the rates above to this list of competitors:

Certificates of deposit

Newtek currently allows you to choose from seven CD terms with high rates. These CDs allow you to set aside money and lock in an APY rate of up to 5.55%. You can create a CD for as low as $2,500 and as high as $250,000. Unfortunately, you can’t withdraw your money before maturity unless you’re ready to bear the early withdrawal penalty

Other services Newtek offers 

While limited personal accounts are available, Newtek Bank offers services like the Newtek Bank Advantage to help businesses manage their finances and improve their bottom line. The bank also offers business checking and savings accounts with zero opening deposits, zero monthly fees, and up to 3.50% APY. 

Online banking

Newtek is an online bank, so expect a complete banking experience regardless of location. Newtek Bank’s online platform allows you to set up an account, transfer and withdraw funds, and monitor your account activities from your device. 

Compare Newtek Bank alternatives


Newtek Bank
Ally logo
Ally Bank
SoFi logo
SoFi Bank 
Checking APY Checking APY Checking APY
N/A Up to 0.25% 0.50%
Savings APY Savings APY Savings APY
5.25% 4.20% Up to 4.60%
Top CD APY Top CD APY Top CD APY
5.55% 4.50% N/A
Monthly maintenance fee Monthly maintenance fee Monthly maintenance fee
$0 $0 $0
View offer View offer View offer

Is Newtek Bank right for you?

Newtek Bank is an online bank with zero fees and high-yield savings and CD accounts, making it a good option for those who want to make more money with their money. Being an online bank also makes it suitable for those who want to manage their accounts from anywhere. However, if you prefer a bank with physical branches or want to keep all your accounts in one place, it’s better to consider another bank with more banking products and services. 

Frequently asked questions

Is Newtek Bank secure?

Newtek Bank, N.A., uses advanced security layers and encryption technology to keep your money and information safe. It’s also a member of the FDIC, so your deposits up to $250,000 are insured in case of a bank failure.

What is the transfer limit for Newtek Bank?

Newtek Bank allows up to six withdrawals from your N.A. savings account, and you can withdraw as much as $25,000 each time. To withdraw beyond the stipulated withdrawal limit, call 718-358-4400.

Is Newtek Bank a real bank?

Yes. Newtek Bank is insured by the Federal Deposit Insurance Corp. (FDIC), telling you it’s nationally chartered and legitimate.  

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