Newtek Bank Savings Review: Earn up to 5.66% APY

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Newtek Bank is an online bank owned by NewtekOne, a small business lender. The bank offers business checking, business savings, personal savings, and personal certificate of deposit (CD) accounts.

If you're shopping around for a savings account or CD, 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 Review

Newtek Bank's current savings rates go up to Newtek Bank 24 Month Variable Rate CD - APY APY — considerably higher than national averages. The bank currently offers high-yield savings accounts, fixed-rate CDs, and variable-rate CDs. 

Newtek Bank High-Yield Savings Review

Newtek Bank's high-yield savings account offers a Newtek Bank Personal High Yield Savings Account - APY APY — much higher than the FDIC National Deposit Savings Rates - APY APY national average and on par with or higher than the best savings account rates currently being offered.

Newtek's savings account requires a Newtek Bank Personal High Yield Savings Account - Minimum Deposit deposit, and there is Newtek Bank Personal High Yield Savings Account - Fees Display or transaction fees. You can open an account in as little as two minutes online.

Newtek Bank Fixed Rate CD Review

Newtek Bank's fixed CD rates range from Newtek Bank CD - APY APY, depending on the term. Its CD rates — on all terms — are higher than national averages, with its highest rates offered on 2-year CDs. The minimum deposit required to open any Newtek Bank fixed-rate CD is Newtek Bank CD - Minimum Deposit. 

There are early withdrawal penalties for these CDs. 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.

Here's a look at the interest rate offered on each term:

Newtek Bank Variable Rate CD Review

Newtek Bank also offers a variable-rate 24-month CD with Newtek Bank 24 Month Variable Rate CD - APY APY. To get this rate, you'll need to deposit at least Newtek Bank 24 Month Variable Rate CD - Minimum Deposit. The account also has a maximum opening deposit of $220,000.

Interest on Newtek Bank's variable-rate CD is compounded daily and credited monthly. Keep in mind, though: The interest you receive is not set in stone. Rates on variable CDs fluctuate based on market conditions, so unlike with traditional CDs, there's no guaranteed return. 

Newtek Bank Savings Review Pros and Cons

Newtek Bank Savings Review FAQs

What is the savings rate at Newtek Bank?

Newtek Bank savings rates range between 2.00% to 5.66% APY depending on what type of account you open and how much you deposit.

Is the Newtek savings account legit?

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.

Is Newtek Bank a good bank?

Newtek Bank is a good bank. It boasts an A+ rating from the Better Business Bureau, indicating trustworthy business practices. 

How Newtek Bank Savings Compares

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 Synchrony High Yield Savings Account - APY APY, Newtek's is much higher at Newtek Bank Personal High Yield Savings Account - APY APY. 

Synchrony Bank's CD rates range from Synchrony Bank CD - APY APY and are not as high as Newtek's variable-rate CD maximum or its highest fixed-rate CDs. It does, however, offer a wider array of CD types, including bump-up CDs and no-penalty CDs, which Newtek Bank does not offer. 

Synchrony Bank Review

Newtek Bank Savings vs. UFB Direct Savings 

UFB Direct savings rates are on par with Newtek Bank's at Newtek Bank Personal High Yield Savings Account - APY% 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 UFB High Yield Money Market - APY APY and comes with check-writing privileges. 

UFB Direct Review

Why You Should Trust Us: How We Reviewed Newtek Bank Savings Accounts

To review Newtek Bank's savings accounts, we used Personal Finance Insider's bank account methodology and CD methodology. We rate products using a scale of 0 to 5 stars. In general, we look at ethics, customer support, and mobile apps when rating an institution. Interest rates, minimum deposit, and monthly fees also play a role.