Newtek Bank Review: Savings and CDs

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 5.25% 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 4.55% 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.