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Newtek Bank HYSA

bananaRama1234
  |     |   63 posts since 2023

Anyone on this forum have a high yield savings account with Newtek Bank? CSR tells me it's relatively new they started their HYSA program this past March. Those of you who have it how do you like their CSR service so far? CSR says as of 10/01/24 they are a "no fees" online bank. Feedbacks are welcome. Thank you in advance.

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enduser
  |     |   711 posts since 2015
I have been with Newtek since May 2023, excellent bank easy to deal with. They are very friendly and feel more like a local CU then a commercial bank. I have only needed to reach out to the CSR two times when I wired money to fund two other accounts. They always answer the phone, are courteous, and even stayed on the phone to walk me through how to fill out the wire form correctly.

Wires are free as long as they are for $25k or more. They allow external links on up to 3 banks. PUSH/PULL transfer limits are $25k when using the Newtek transfer system. Transfer speed is 3 business days, and they are still enforcing Reg D so there is a max of six (6) withdrawal transfers per month. To bypass the Newtek ACH transfer limitations I mostly PUSH/PULL funds using my external FI to avoid any hold period. Overall I'm very pleased with Newtek.
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bananaRama1234
  |     |   63 posts since 2023
Per CSR, Newtek allows only 1 external link on the Newtek side, but there are no limits on how many external FIs can link to your Newtek account. And you cannot change your designated link, unless that account is closed. Not sure where you're getting 3 accounts from?

When you use your external FI to push in funds, how long does it for Newtek to clear funds?
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enduser
  |     |   711 posts since 2015
I'm reporting three because 3 is what I have. If you have in excess of $100k you get 3 external links. I did not have to ask for it. The system allowed me to add 3. Short of posting a screenshot of my links, just Google it and AI will confirm it.

"AI Overview
Newtek Bank typically allows one linked external bank account, but accounts with balances of at least $100,000 may be able to link multiple accounts."

If you are a Johnny come lately I doubt they will give you 3 right of the bat. As I stated I have been with Newtek bank about a year and a half, and I have always had on deposit close to the FDIC insured limit.

When you PUSH funds in using an external FI it will post instantly with no hold time. The hold only applies when you use the Newtek transfer system to PULL funds in as is the case with most banks.

When you PUSH from an external FI you bypass that limitation at all banks. Ally is the only bank I use that does not place a hold on inbound funds when I have Ally PULL in those funds but this is not the case at other FI's.
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Rickny
  |     |   1,296 posts since 2017
Have account with them. Haven't need any CSR support. Make sure you haveca good outside account to do ACH pulls as it takes days for them to process transactions.
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bananaRama1234
  |     |   63 posts since 2023
Yeah I just found out that it takes days to process ACH transfer if initiate from Newtek. It can also take up to 3 business days to get approval for increase ACH transfer. Also, I was told by CSR that incoming ACH transfers(deposits), initiated at Newtek, have a hold time of up to 4 business days, no interests accrue until funds clear or become available!! Most financial institutions will give interests 1 business day after the deposit is submitted.
It sounds like it'd be easier to initiate transactions, pulls/pushes, from an external account.
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GH1
  |     |   1,052 posts since 2017
Yes thats the reason i dont do more with them. To ach in takes like 5 days. Its crazy
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acadapter
  |     |   296 posts since 2018
Seems like a decent bank, the only thing that I don't like is that aggregate financial websites don't support them yet at least.
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happyharold4
  |     |   388 posts since 2022
So what are they offering that causes you to post up.
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bananaRama1234
  |     |   63 posts since 2023
Most places have reduced their HYSA APY from 5.0+ to 5.0% and below. Newtek is still offering 5.25% APY but idk how long they can sustain this. It's not the highest rate currently offered but decent and I like that they offer free wire transfers, so long as the outgoing transfer is your designated external bank. Their ACH transfers takes 5 business days to complete which is kind of a bummer, but if it's for deposits and you don't need the funds that shouldn't be a problem. I'm just wondering if anyone has any outstanding issues with this bank. Debating whether I should move my funds knowing that rates can change anytime.
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NYCDoug
  |     |   334 posts since 2011
Don't want to jinx it, but, given it's high rate, Newtek is my go-to repository for my brokerage account dividends — automatic and otherwise. My ACH pushes & pulls all originate externally, mostly from Customers, with its same-day no-fee transfers.

Bottom line: no complaints
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