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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.
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.
Newtek Bank has one very compelling high-yield savings account -- the 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.
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 |
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Open Account for SoFi Checking and Savings
On SoFi's Secure Website.
Rating image, 4.50 out of 5 stars.
4.50/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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up to 4.60%²
Rate info
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!¹
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Open Account for SoFi Checking and Savings
On SoFi's Secure Website. |
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Open Account for Capital One 360 Performance Savings
On Capital One's Secure Website.
Rating image, 4.00 out of 5 stars.
4.00/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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4.25%
Rate info
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
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N/A
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Open Account for Capital One 360 Performance Savings
On Capital One's Secure Website. |
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Open Account for UFB Portfolio Savings Account
On UFB's Secure Website.
Rating image, 4.00 out of 5 stars.
4.00/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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5.15%
Rate info
To ensure you keep getting the highest rate at UFB, you'll need to keep an eye on their rates. Occasionally, the bank launches new accounts with higher rates. Existing accounts need to contact the bank to request being moved to one of these new accounts.
Min. to earn: $0
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N/A
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Open Account for UFB Portfolio Savings Account
On UFB's Secure Website. |
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.
Bank & CD Offer | APY | Term | Min. Deposit | Next Steps |
---|---|---|---|---|
Member FDIC.
| APY: 4.60% | Term: 1 Year | Min. Deposit: $2,500 |
Open Account for Discover® Bank CD
On Discover Bank's Secure Website. |
Member FDIC.
| APY: 5.20% | Term: 10 Months | Min. Deposit: $2,500 |
Open Account for
On Secure Website. |
Member FDIC.
| APY: 5.10% | Term: 6 Months | Min. Deposit: $500 |
Open Account for
On Secure Website. |
Unfortunately, Newtek Bank does not offer a personal checking account. However, it has a pretty attractive business checking account -- the 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.
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 |
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Open Account for Discover® Cashback Debit
On Discover Bank's Secure Website.
Rating image, 5.00 out of 5 stars.
5.00/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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0%
Min. to earn: N/A
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Earn 1% cash back on up to $3,000 in debit card purchases each month (see details when you click 'Open Account')
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Open Account for Discover® Cashback Debit
On Discover Bank's Secure Website. |
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Open Account for Quontic High Interest Checking
On Quontic's Secure Website.
Rating image, 4.00 out of 5 stars.
4.00/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
|
up to 1.10%
Min. to earn: $1
|
High APY when you complete 10 or more qualifying debit card purchases each month
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Open Account for Quontic High Interest Checking
On Quontic's Secure Website. |
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.
Yes, Newtek Bank is a member of the FDIC, which insures up to $250,000 per depositor, per bank, per account ownership category.
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.
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.
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.
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.
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 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 (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.
This bank may be a good option for you if:
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.
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent, a Motley Fool service, does not cover all offers on the market. The Ascent has a dedicated team of editors and analysts focused on personal finance, and they follow the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands.