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 4.55% APY — considerably higher than national averages. The bank currently offers high-yield savings accounts and fixed-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 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 | 4.25% |
| 1 year | 4.25% |
| 18 months | 4.20% |
| 2 years | 4.20% |
| 3 years | 3.90% |
| 4 years | 2.00% |
| 5 years | 2.00% |
Newtek Bank Savings Account Features
Current Newtek Bank Savings Rates and How They Compare
Newtek Bank's high-yield savings account offers a 4.55% APY — much higher than the 0.41% 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 4.25% 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.
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.
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 Account Pros and Cons
Newtek Bank Savings Account Pros
- High interest rates
- A+ rating from the Better Business Bureau
- No service or transaction fees
- FDIC-insured
Newtek Bank Savings Account Cons
- No physical locations if you need in-person help
- High minimum deposit on CDs
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.
Newtek Bank Savings Account Alternatives
Newtek Bank Savings vs. Openbank Savings
Openbank's savings rate is 4.75% (vary depending on location) APY, which is more competitive than Newtek Bank's high-yield savings rate. Openbank doesn't have CDs, though, so Newtek Bank will be a better choice if you want to lock in a high rate.
If you haven't heard of Openbank before, it's an online division of Santander Bank. You can bank with OpenBank as long as you're at least 18 years old and live in a state that isn't Connecticut, Delaware, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, or Rhode Island. You also aren't eligible to open a high-yield savings account if you have a loan or bank account with Santander Bank.
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 4.00% APY, Newtek's is much higher at 4.55% APY.
Synchrony Bank's CD rates range from 0.25% to 4.35% 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
The UFB Direct savings rate is 4.01% 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 4.01% APY and comes with check-writing privileges.
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 one to five stars. In general, we look at ethics, security, customer support, miscellaneous features, and mobile apps when rating an institution. Interest rates, minimum deposit, and monthly fees also play a role.
We use a weighted average to get our star rating, which means we weigh certain features, like interest rates and fees, at a higher weight percentage than others. We understand that these areas can more heavily impact a person's overall banking experience.
Newtek Bank Savings Review FAQs
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.
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.
Newtek Bank savings rates range between 2.00% to 4.55% APY depending on what type of account you open and how much you deposit.
Newtek Bank has an A+ rating from the Better Business Bureau, indicating trustworthy business practices.
