Newtek Bank is the 1,574th largest bank in the nation. It was established in 1963 and as of June of 2023, it had grown to 320 employees. Newtek Bank has an A+ health rating.
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Updated Review From 4/19/23
I'm a depositor at Newtek. I have experienced nothing but good things with them. I recently received an email advising me they were raising my savings rate from 5% to 5.25%, automatically. Today, I wanted to see how responsive they were to a request for a wire transfer. I was on hold for just a couple of minutes at most. Jonathan answered, and I asked to speak to the wire desk. He said he could help me. He was very cordial. After verifying my identity, he explained the process and requirements. He promptly emailed me a wire form via Docusign. I filled it out, and it automatically was returned to Newtek. The wire transfer hit my bank within a couple of hours. Maybe sooner, but that is when my bank posted it.
They do have restrictive ACH limits. $25,000/day in or out. They will not increase the limits. So, if you want to move a sizeable amount of money, you will need to do it by wire transfer. I don't believe Newtek charges a wire fee. I will have to look at my EOM statement to verify.
Good Experience So Far
Opening the high yield savings account took just five minutes. You can open this account with as little as a penny. Customer Service Representatives were easy to get a hold of when I applied (may have changed with more people applying). There are no fees and no minimum balance requirement.
The ACH transfer limits compare reasonably to most banks. Transfers initiated from Newtek are limited to $25,000 a day (couldn't find any mention of a monthly amount limit). Only six withdrawals a month are permitted. Using Newtek, the ACH transfer speed was same day or next. It won't be a hub account because of the withdrawal restriction and daily cap, but the ACH transfer speed is good.
I was told by a Customer Service Representative that ACH transfers are restricted to six a month whether withdrawals or deposits, but I've made twelve deposits and two withdrawals without a problem. The account agreement says, "You may make six (6) transfers from a savings account to another account or to third parties by preauthorized or automatic, telephone, or computer transfer per monthly statement cycle. If you exceed the transfer limitations set forth above, your account shall be subject to closure."
The account shows the interest accrued with each passing day. If you close the account before the interest is credited each month, you won't get that accrued interest (close the account once the interest is received and transferred out even if it means drawing the balance down to only a dollar until that day).
Beware: Low Staff & ACH Issues
I have money stuck with them for over 5 days. I say stuck because I've called twice and was told that I either called when the right people weren't available or was told to call back and a complimentary wire would be approved to get my funds back to the source bank.
Both times I've had the other agent say; can we call you back? I asked to speak with the wiring department, and he's that guy. I asked to speak to management; none available.
So ACH issues, bank unable to post transfer, low staffing and inept folks handling your money. It's not worth the high interest rate. I'd rather have it making 4.50% at a reliable bank than ever let my money touch newtek bank again
Data as of Q2 2023
Learn why bank health mattersHealth Grade Components
| Overall | |
|---|---|
| FDIC Certificate # | 18734 |
| Year Established | 1963 |
| Employees | 320 |
| Primary Regulator | OCC |
| Profit Margin | |
|---|---|
| Return on Assets - YTD | 2.23% |
| Return on Equity - YTD | 12.56% |
| Annual Interest Income | $11.8MM |
| Assets and Liabilities | ||
|---|---|---|
| Assets | Q2 2023vs Q2 2022 | $568.2MM$212.7MM |
| Loans | Q2 2023vs Q2 2022 | $255.3MM$158.4MM |
| Deposits | Q2 2023vs Q2 2022 | $447.4MM$145.9MM |
| Equity Capital | Q2 2023vs Q2 2022 | $84.6MM$37.1MM |
| Loan Loss Allowance | Q2 2023vs Q2 2022 | $4.8MM$2.5MM |
| Unbacked Noncurrent Loans | Q2 2023vs Q2 2022 | $3.4MM$3.4MM |
| Real Estate Owned | Q2 2023vs Q2 2022 | $0$0 |