Newtek Bank Offers Up To 4.40% APY On CDs

Newtek Bank, a digital institution based in Miami, Florida, has garnered attention for its competitive certificate of deposit (CD) rates as of July 16, 2025. The bank offers two types of CDs: standard and business, each with varying term lengths and annual percentage yields (APYs).

Newtek Bank's standard CDs come in eight different term lengths, ranging from six months to five years. The highest APYs are offered on the six and nine-month terms, both at 4.40%. Other terms include 12 months at 4.25%, 18 months at 4.20%, 24 months at 4.20%, 36 months at 3.90%, 48 months at 2.00%, and 60 months at 2.00%. The minimum opening deposit for these CDs is $2,500, with no partial withdrawals permitted. Early withdrawal penalties vary based on the term length, and automatic renewal is available with a seven-day grace period.

For business owners, Newtek Bank offers business CDs with similar term lengths but slightly different APYs. The six and nine-month terms both offer 4.25% APY, while the 12-month term offers 4.15%, the 18-month term offers 4.00%, the 24-month term offers 3.75%, the 36-month term offers 3.50%, and both the 48-month and 60-month terms offer 1.00% APY. The minimum opening deposit and other features are the same as the standard CDs.

When compared to traditional full-service banks, Newtek Bank's CD rates are highly competitive. For instance, Discover Bank offers lower APYs for most terms, while Northern Bank Direct offers slightly higher rates for the six and nine-month terms but lower rates for longer terms. Newtek Bank's lack of physical branches allows it to offer these competitive rates by reducing operational costs, although customers must rely on digital banking and 24-hour customer service.

Newtek Bank's CDs are FDIC insured up to $250,000 per account holder, providing a low-risk investment option for those looking to grow their savings. The bank's digital nature and competitive rates make it an attractive option for those comfortable with online banking. However, potential customers should be aware of the minimum deposit requirements and early withdrawal penalties before opening an account.