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Newtek Bank Review: Exciting APYs, but Few Account Options

Review Updated
Steven Porrello
By: Steven Porrello
Steven Porrello
Steven Porrello
Writer

Steven is a personal finance writer covering topics from mortgages to credit cards to market news. He has written for The Motley Fool Canada, Ramsey Solutions, Nerdwallet, Clever Real Estate, and other major outlets. Steven launched his writing career at the age of four with his first book, "Revenge of the Bad Guys." He currently lives in Portland, Oregon.

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Our Banking Expert

Eric McWhinnie
Check IconFact Checked Eric McWhinnie
Eric McWhinnie
Eric McWhinnie

Eric McWhinnie has been writing and editing digital content since 2010. He specializes in personal finance and investing. He also holds a bachelor’s degree in Finance.

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Many or all of the products here are from our partners that compensate us. It’s how we make money. But our editorial integrity ensures our experts’ opinions aren’t influenced by compensation. Terms may apply to offers listed on this page. APY = Annual Percentage Yield. APYs are subject to change at any time without notice.
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Member FDIC.

Newtek Bank

Bottom Line

Newtek Bank's online bank accounts have strong APYs and no monthly fees. However, since it doesn't offer a personal checking account, accessing your money could be a hassle, especially since it doesn't provide debit or ATM cards on its savings account.

Pros
  • High APYs
  • No monthly service fees
  • Free business checking account
Cons
  • Online-only; no branch access
  • No personal checking account
  • No ATM card for savings account
  • High minimum for CDs

  • Our methodology for scoring banks and credit unions revolves around evaluating key aspects such as annual percentage yield (APY), brand reputation, fees and minimum requirements, and additional perks.

    These criteria are weighted differently across various account types, ensuring a comprehensive assessment that reflects the competitive landscape and economic conditions.

    We strictly feature products that offer federal insurance and high customer satisfaction, keeping our recommendations unbiased by advertiser influence. This robust evaluation process helps us generate balanced, reliable best-of lists that guide consumers to top financial products.

    Learn more about how The Motley Fool Ascent rates bank accounts.

Savings accounts

Newtek Bank has one very compelling high-yield savings account -- the Personal High Yield Savings.

Newtek Bank Personal High Yield Savings

This account earns 5.25% APY, has no monthly service fee, and requires no minimum balance, neither to open the account nor to maintain the savings rate. A free savings account like this is an easy way to snag a high APY, especially if, as Newtek Bank claims, you can open it in two minutes or less.

One downside is that Newtek Bank doesn't offer a personal checking account, so it could be a hassle to move money to and from this account. It also doesn't come with a debit card, so the only way to access money would be to transfer it to an external account. If you want quick access to your money, then, this might not be the right option for you.

Compare savings rates

Make sure you're getting the best account for you by comparing savings rates and promotions. Here are some of our favorite high-yield savings accounts to consider.

Account APY Promotion Next Steps
up to 4.60%
Rate info Circle with letter I in it. You can earn the maximum APY by having Direct Deposit (no minimum amount required) or by making $5,000 or more in Qualifying Deposits every 30 days. See SoFi Checking and Savings rate sheet at: https://www.sofi.com/legal/banking-rate-sheet.
Min. to earn: $0
New customers can earn up to a $300 bonus with qualifying direct deposits!
4.25%
Rate info Circle with letter I in it. See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of April 11, 2024. Rates are subject to change at any time before or after account opening.
Min. to earn: $0
N/A
4.25%
Rate info Circle with letter I in it. 4.25% annual percentage yield as of June 28, 2024
Min. to earn: $1
N/A

Certificates of deposit

Newtek Bank offers seven CD terms running from six to 60 months. Its best CD rate is currently on its 6-month CD, though its 12-month CD and 18-month CD have attractive rates for their respective terms. The minimum opening deposit is $2,500, which is a little steeper than other banks. Like other CD providers, Newtek Bank will impose an early withdrawal penalty for liquidating a CD before maturity.

Compare CD rates

Rates as of June 7, 2024
Bank & CD Offer APY Term Min. Deposit Next Steps
APY: 4.70% Term: 1 Year Min. Deposit:  $2,500
Open Account for Discover® Bank CD
APY: 5.25% Term: 1 Year Min. Deposit:  $1
Open Account for
APY: 5.10% Term: 9 Months Min. Deposit:  $1
Open Account for

Checking accounts

Unfortunately, Newtek Bank does not offer a personal checking account. However, it has a pretty attractive business checking account -- the Business First Checking.

Newtek Bank Business First Checking

This account has no monthly service fee, earns interest on balances, and comes with unlimited transactions. It also comes with a debit card with which you can pull money out of eligible ATMs. Finally, it can connect seamlessly with Newtek Advantage -- a dashboard that showcases your financial accounts, keeps business documents organized, and tracks website growth, along with other features for your business.

Compare checking accounts

We recommend comparing checking accounts to make sure you're getting the best fit for you. Here's a list of our favorite accounts.

Account APY Promotion Next Steps
0%
Min. to earn: N/A
Earn 1% cash back on up to $3,000 in debit card purchases each month (see details when you click 'Open Account')
up to 1.10%
Min. to earn: $1
High APY when you complete 10 or more qualifying debit card purchases each month
0.40% (up to 3.30%)
Rate info Circle with letter I in it. To earn the full APY, account holders must do all of the following: Receive monthly direct deposits totaling more than $1,500; make 10 transactions a month with your Axos debit card, or sign up for Axos's Personal Finance Manager; maintain an average daily balance of $2,500 per month in an Axos Invest Self Directed Trading Account; and use your Rewards Checking account to make your full monthly Axos Bank consumer mortgage, personal, or auto loan payment.
Min. to earn: Monthly direct deposits totaling at least $1,500
Cash in on up to a $500 bonus† and up to 3.30% APY* with a new Rewards Checking account. Just use promo code RC500 before July 31.

Money market accounts

Newtek Bank's Business Money Market Account has no monthly fee, earns a competitive APY, and has no monthly minimums to maintain. However, unlike other top money market accounts, this one doesn't come with a debit card, nor does it have check-writing privileges. Its APY is also uncompetitive compared with those offered by other banks.

Is Newtek Bank FDIC insured?

Yes, Newtek Bank is a member of the FDIC, which insures up to $250,000 per depositor, per bank, per account ownership category.

Customer experience

Newtek Bank reviews on third-party sites are mostly negative. The few positive reviews praise the company's high APYs and seem generally content with the customer service. Negative reviews report unresponsiveness, lack of communication, difficulty accessing large amounts of money, clunky processes, and unexplained rejections.

  • Better Business Bureau rating: 1.8 out of 5 stars
  • Trustpilot rating: 1.8 out of 5 stars

Customer service

To reach Newtek Bank's customer service, you can call, email, or connect via chat. Customer service hours are 8 a.m. to 8 p.m. EDT for personal banking services and 9 a.m. to 6 p.m. EDT for business banking. These hours apply to both phone and live chat. You can also video chat with a representative from the bank during these hours.

Mobile app

Newtek Bank's mobile app provides basic banking app functions. You can check all your Newtek Bank accounts in one place, deposit checks on mobile, and transfer money to and from external accounts. Unlike other banking apps, however, you can't add external accounts to a dashboard to get a wider perspective on your finances, nor does it currently leverage AI technology to help you analyze your finances.

  • App Store rating: 4.6 out of 5 stars
  • Google Play rating: 4.4 out of 5 stars

Relationship benefits

Newtek Bank doesn't offer relationship benefits, such as increased APYs when you open and link various bank accounts. Instead, the bank offers generous APYs and no monthly account fees upfront. If you're interested in getting benefits for being a loyal client, you might want to consider big national banks that provide relationship benefits, like Wells Fargo.

Alternatives to Newtek Bank

Since Newtek Bank is foremost a bank for businesses, it doesn't have all account types for personal clients (most notably missing is a checking account). If you're looking for something Newtek Bank doesn't offer, here are a couple alternative banks with more account types.

Quontic Bank

Quontic Bank is an online bank with an impressive suite of high-APY, no-fee accounts. In the past, its CDs have ranked frequently among the best CD rates on the market, while its high-yield savings account can compete with Newtek Bank. It also offers two checking accounts, one of which comes with a debit card that earns rewards -- a rare perk in the debit card industry.

EverBank

EverBank (formerly TIAA) is another online bank that offers generous savings rates on CDs and savings accounts. The bank offers a full suite of CD terms, making it easy to build a long CD ladder, and its savings account has no fees and branch access if you live near an EverBank (aka, in Florida). It also has plenty of personal and business checking accounts, some of which earn interest.

Is Newtek Bank right for you?

This bank may be a good option for you if:

  • You want an online savings account or CD with a high APY.
  • You don't need branch access.
  • You're not looking for a personal checking account.

FAQs

  • Yes, Newtek Bank is a safe institution with which to bank. Newtek Bank has FDIC insurance which protects up to $250,000 per depositor, per account in the event of a bank failure. The bank has also been around since 1963 and recently acquired the National Bank of New York City, thus bolstering its deposits.

  • No, it currently does not offer debit cards for deposit accounts. While the bank offers debit cards for business checking account holders, it has not announced plans to offer them for personal savings accounts.

  • Yes. The bank's standard transfer limit is $25,000. To transfer larger amounts, you'll need to contact the bank to see if the transfer can be done. Newtek Bank's Personal High Yield Savings account is also limited to six withdrawals per monthly statement cycle.