Newtek Bank Review: Savings and CDs
Many, or all, of the products featured on this page are from our advertising partners who compensate us when you take certain actions on our website or click to take an action on their website. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money.
Overall institution rating
4.8
Newtek Bank is an online bank, headquartered in Miami, that features high rates and minimal fees on its consumer savings account and certificates of deposit. The high-yield savings account earns an annual percentage yield of 4.90% for balances of $0.01 and up. There are no monthly fees or minimum balance requirements to open or maintain the account. Funding an account requires an external bank account, and the bank doesn’t have same-day transfers, such as through a partnership with Zelle.
CD terms have a standard range from six months to five years, and there’s a minimum deposit of $2,500, which is somewhat higher than the typical minimum of $1,000 at other online banks. Short-term CD rates, such as 4.25% APY for one year, tend to be more competitive than long-term CD rates. (Compare yields with NerdWallet’s best CD rates.)
Newtek Bank focuses on businesses more than consumers, but consumer accounts can be opened without business accounts and are available nationwide (and are FDIC-insured). Checking accounts and check deposits (via mobile app) are only available to business customers. For more on business offerings, see our review of Newtek merchant solutions.
Note: Our ratings and review only cover consumer accounts.
Best for: Online consumers who want a savings account or CD with a high interest rate.
» COMPARE: Check out NerdWallet's best high yield savings accounts
Pros
- No monthly fees.
- Competitive rates on savings account and some CDs.
- No minimum opening deposit on savings account.
- 24/7 customer service by phone.
Cons
- No checking account offered (for consumers).
- No branch access.
- No cash or mobile check deposit.
How does Newtek Bank compare?
 Member FDIC |  Member FDIC |
|---|---|
NerdWallet rating 4.5 /5 | NerdWallet rating 4.5 /5 |
APY 4.00% With $0 min. balance for APY | APY 4.35% With $5,000 min. balance for APY |
Bonus $300 Earn up to $300 with direct deposit. Terms apply. | Bonus N/A |
Learn more at SoFi Bank, N.A. | Learn more at CIT Bank |
Methodology
NerdWallet’s overall ratings for banks and credit unions are weighted averages of several categories: checking, savings, certificates of deposit or credit union share certificates, banking experience and overdraft fees. Factors we consider, depending on the category, include rates and fees, ATM and branch access, account features and limits, user-facing technology, customer service and innovation. The stars represent ratings from poor (one star) to excellent (five stars). Ratings are rounded to the nearest half-star.
