Newtek Bank, National Association (Newtek Bank NA), a division of NewtekOne, 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 do, but you’ll get higher annual percentage yields (APYs) than many banks offer on their savings accounts and certificates of deposit (CDs).
All prices and fees are effective July 2, 2024 and are subject to change.
Newtek Bank tariffs and products
Newtek offers its customers a high-yield savings account and several CD options. These accounts have no monthly fees, so you can save even more. Unfortunately, these are the only retail banking options and a business is required to open other types of accounts.
Savings accounts
With 5.25% APY, Newtek is one of the best high-yield savings accounts. You can open an account without making any deposits and make free withdrawals up to six times during each billing cycle. However, you won’t earn any interest on your savings account if your balance is less than a penny at the end of the month.
Newtek Bank Savings Account Features
Minimum deposit |
$0 |
Monthly service fees |
$0 |
Highest effective annual interest rate |
5.25% |
Online transfer limit |
Six transfers per monthly billing cycle |
Newtek Bank savings interest rates compared to current top interest rates*
Although Newtek is a great option, some institutions offer higher interest rates. Compare the above rates with this list of competitors:
Check out this interactive chart on Fortune.com
Certificates of deposit
At Newtek, you can currently choose from seven CD terms with high interest rates. These CDs allow you to set money aside and lock in an APY rate of up to 5.55%. You can create a CD for as little as $2,500 and as much as $250,000. Unfortunately, you cannot withdraw your money before maturity unless you are willing to pay the early withdrawal penalty.
Newtek Bank CD Features
Minimum deposit |
$2,500 |
Available terms |
6–60 months |
Highest effective annual interest rate |
5.35% for the 6-month CD |
Prepayment penalty |
Yes, penalties may apply |
Check out this interactive chart on Fortune.com
Other services offered by Newtek
While only a limited number of personal accounts are available, Newtek Bank offers services such as the Newtek Bank Advantage to help businesses manage their finances and improve their bottom line. The bank also offers business and savings accounts with no opening deposit, no monthly fees, and up to 3.50% APR.
Online banking
Newtek is an online bank, so you can enjoy 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 activity from your device.
Compare alternatives to Newtek Bank
Newtek Bank |
Bank of the Allies |
SoFi Bank |
---|---|---|
Check APY |
Check APY |
Check APY |
N/A |
Up to 0.25% |
0.50% |
Savings interest rate |
Savings interest rate |
Savings interest rate |
5.25% |
4.20% |
Up to 4.50%* |
Best CD APY |
Best CD APY |
Best CD APY |
5.35% |
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 a real bank?
Yes. Newtek Bank is insured by the Federal Deposit Insurance Corp. (FDIC), which means it is nationally chartered and legitimate.
What is the transfer limit of Newtek Bank?
Newtek Bank allows up to six withdrawals from your NA Savings account and you can withdraw up to $25,000 each time. To withdraw beyond the set withdrawal limit, call 718-358-4400.
Is Newtek Bank a real bank?
Yes. Newtek Bank is insured by the Federal Deposit Insurance Corp. (FDIC), which means it is nationally chartered and legitimate.
Is Newtek Bank safe?
Newtek Bank, NA uses advanced security layers and encryption technology to protect your money and information. It is also a member of the FDIC, so your deposits are insured up to $250,000 in the event of a bank failure.
What is the transfer limit of Newtek Bank?
Newtek Bank allows up to six withdrawals from your NA Savings account and you can withdraw up to $25,000 each time. To withdraw beyond the set withdrawal limit, call 718-358-4400.
Is Newtek Bank a real bank?
Yes. Newtek Bank is insured by the Federal Deposit Insurance Corp. (FDIC), which means it is nationally chartered and legitimate.
*SoFi members with direct deposit or $5,000 or more in qualifying deposits during the 30-day evaluation period can earn 4.50% annual percentage rate (APY) on savings (including vault) and 0.50% APY on checking balances. There is no minimum direct deposit amount required to qualify for the stated interest rate. Members without direct deposit or qualifying deposits will earn 1.20% APY on savings (including vault) and 0.50% APY on checking balances during the 30-day evaluation period. Only SoFi members with direct deposit are eligible for other SoFi Plus benefits. Interest rates are variable and subject to change at any time. These rates are effective 8/27/2024. There is no minimum balance requirement. For more information, visit http://www.sofi.com/legal/banking-rate-sheet.
Is Newtek Bank right for you?
Newtek Bank is an online bank with no fees and high-yield savings accounts and CD accounts, making it a good option for those looking to get more value from their money. Since it’s an online bank, it’s also great 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, you may want to consider another bank with more banking products and services.
Frequently Asked Questions
Is Newtek Bank safe?
Newtek Bank, NA uses advanced security layers and encryption technology to protect your money and information. It is also a member of the FDIC, so your deposits are insured up to $250,000 in the event of a bank failure.
What is the transfer limit of Newtek Bank?
Newtek Bank allows up to six withdrawals from your NA Savings account and you can withdraw up to $25,000 each time. To withdraw beyond the set withdrawal limit, call 718-358-4400.
Is Newtek Bank a real bank?
Yes. Newtek Bank is insured by the Federal Deposit Insurance Corp. (FDIC), which means it is nationally chartered and legitimate.
This story originally appeared on Fortune.com