Newtek Bank Reviews

Average Rating:
Based on 18 review

Technical Failures Without Competency To Repair Or Workaround

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I wasted five days waiting for the Newtek IT Department to fix a linked bank verification loop error that was apparently effecting other customers also. This meant that my bank was authorizing all connections each time, but the Newtek system kept requesting two-factor passcodes regardless (text, voicemail, and email all tried). I even suggested that someone manually setup the link, even with a micro-deposit security step, but they declined. This was a failure of not only their IT people, but their management. In the end, Newtek became the best advertisement for one of their banking competitors and I have since made a mid five figure deposit elsewhere.

If you try Newtek and are able to become a customer, good for you. Just have a solid alternative plan to gain access to your money should a similar customer service verses technical issues failure occur. It all comes down to reliability and trust.

Something Fishy With This Bank. Be Warned.

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They advertise a no minimum balance on the Savings Account but still require to link an external bank account as part of the online account opening procedure. But with linking an external account they pull information about all the accounts from that external bank that you have, your tax documents, etc., etc.
At the same time, they do not allow to push money from an external bank, they only allow pulling it themselves from your other accounts.

That's a serious reason for concerns, if not a consumer rights violation.

Inefficient And Frustrating Experience

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My attempt to open an account with was met with unnecessary hurdles and a clear demonstration of incompetence. Despite providing a valid U.S. Passport as proof of citizenship, the staff insisted on additional, irrelevant documentation. This not only shows a lack of understanding of basic documentation requirements but also adds unnecessary complexity to what should be a straightforward process.

I've decided to take my business elsewhere due to this cumbersome process and the staff's evident incompetence. I would advise potential customers to look for a bank that values efficiency and possesses a competent understanding of customer service.

Could Be Better

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I opened a cd and requested the receipt by mail. I gave them a seasonal address. A month later it was sent to the wrong address. I tried to print a statement and had to call them. I was told statements weren't working and couldn't be printed that day.

Good Bank To Work With.

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Cannot beat the rates. Was easy to open.

Updated Review From 4/19/23

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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.

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

Really A Question...Joint Accounts With POD's?

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Possibly a new client... initial comments/experience by others appears favorable, but several questions important to me and estate structure.

1) Any problem/issue with establishing a joint/wros account with my wife.

2) Any problem/issue with establishing POD's for my two children .... and associated with that, will I have/receive good documentation that my POD's are of proper official bank record for my files.

I have to rate my experience to post...but I have no I have just rated neutral.

Quirky ACH Transfer Policy

Newtek Bank only allows one external account to be linked to its savings account. In addition, you must schedule an ACH transfer at least three business days beforehand. For example, if you go to schedule an ACH transfer on Monday then the earliest it will be processed is on Thursday. "Transfers to or from accounts at other financial institutions must be scheduled at least three business days in advance of the effective date of the transfer."

The standard transfer limit is $25,000. You can make up to six (6) transfers per monthly statement cycle.

I've Moved On...

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Newtek is the only bank that requires you to upload a pic of your social security card. Which I don't believe I've had since college. No bank, employer, has EVER needed my PAPER social security card. Their approval process is in the dark ages.
They do have easy to reach, friendly customer service reps, who tried to help me work around that requirement by telling me to upload other tax return forms showing my complete SSN. I did so. But then I was rejected.
In the meantime, I applied for and received a new SS card (which of course is not required by any other bank) and the Newtek APY rates have gone down. Luckily I was approved by another bank with comparable APY rates.

Very Easy To Open Account

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Everything went smoothly opening an account. I like this bank so far. Easy to navigate the site once the initial sign up is done.

There Is A Reason They Are A Micro Bank.

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They do not have the resources to properly identify legitimate people when they apply. Not for the serious saver to even mess with.

Monthly ACH Transfer Limits And Daily Transfer Limits

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From my savings account dashboard, I sent a message to Newtek Bank seeking clarification about the monthly ACH transfer limits and daily transfer limits and whether the latter can be raised above $25,000. Within three hours, I received the following reply, which responded to each of the questions I posed:

Good afternoon,

The 6 transfers limit refers to debits only, meaning you are limited to 6 withdrawals a month. There is no limit to the number of credits you can complete. The transfers are limited per monthly statement cycle, our statement cycle begins the 1st of every month. So, you will be limited to 6 withdrawals from the beginning of May 01, 2023, until May 31, 2023. And it will continue like that going forward for every statement cycle. And regarding the daily limit, the maximum limit we can offer you is $99,999.00. Please keep in mind that the bank will lower the ACH limit if the activity on the account is not constant. For example, having no transfer activity will prompt the bank to lower the account limit back to $25,000.00. However, you would be able to request an adjustment to the limit again should you ever need to.

If you would like for us to raise your daily limit, please let us know.

Newtek Business Service Specialist

Straightforward Account Opening Experience

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The online application process was straightforward. As part of the process, you will be prompted to set-up your access code and password (for website access to your account) and security verification questions. Upon completing the application, I was informed on screen of the approval. I also received an email.

During the application process you can also link an external bank account. I opted to instead use trial deposits; the trial deposits were sent within 24 hours. I was then easily able to complete the link of my external account to the savings account. I set-up a transfer to fund my account.

One thing that some may find off-putting, but I welcome, is two-factor authentication each time you log into your account. You will be sent an eight-digit code by email or text message, depending on which method you previously indicated as your preference.

Assuming no error or timing issues with the external transfer (I am having Newtek Bank pull the funds from my external account), I am happy with the speed in which I was able to set-up an account. I did not need to contact customer service so I cannot comment on how quickly (or not) a customer service representative is accessible. Further, I also did not need to send any messages to Newtek Bank seeking assistance.

ADDED 04-24-2023...

The external transfer was completed and posted in a timely manner with the funds available immediately.

I also received a phone call from David Filippone, Business Service Specialist at Newtek to thank me for my business.

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