A savings option just got more attractive. Online-only Newtek Bank has refreshed its certificate of deposit (CD) lineup, introducing a new 13-month term that pays a competitive 4.30% APY. The rate ranks among the highest available nationwide, making it an appealing choice for savers looking to lock in a strong return for just over a year.
Newtek hasn’t said how long the offer will be available, so if you’re considering opening a CD, now is a good time to compare it with other top-paying accounts before rates change.
Newtek CD rates and fees
Newtek offers the following CD terms and rates, at the time of writing:
- 6-month: 4.00% APY
- 9-month: 4.00% APY
- 12-month: 4.10% APY
- 13-month: 4.30% APY (new and for a limited-time only)
- 18-month: 3.90% APY
- 24-month: 3.80% APY
- 36-month: 3.80% APY
- 48-month: 2.00% APY
- 60-month: 2.00% APY
If you’re comfortable not touching your funds for a little over a year, Newtek’s new 13-month CD offers a very competitive APY for that term length (more on how it compares below). Park $5,000 in the account and you’ll earn $233.33 in interest alone after 13 months — all for just having your cash sit in the account and accrue interest.
There’s a $2,500 minimum deposit required to open a Newtek CD, and your money is FDIC-insured up to $250,000 per account. Penalties may apply to early withdrawals.
Newtek Bank CDs
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Annual Percentage Yield (APY)
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Terms
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Minimum deposit
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Monthly fee
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Early withdrawal penalty fee
If you withdraw the entire principal amount from your CD account prior to maturity, you’ll be charged an early withdrawal penalty based on the term of your CD and the principal. Terms apply.
Pros
- Range of fixed CD terms
- Offers limited-time CD specials
- No setup or maintenance fees
Cons
- $2,500 minimum deposit
- You can’t access your money before your CD term ends
- Lower rates on longer-term CD options
- Early withdrawal penalty fees apply
- No physical branches
How Newtek’s 13-month CD stacks up
Newtek’s 13-month CD offers a competitive APY compared with other CDs in the one year range.
For example, Happen Bank (formerly LendingClub) currently has an 11-month CD offering 4.15% APY. There’s a $500+ minimum opening deposit required, which is a lot less than Newtek’s $2,500 minimum.
If you don’t want your CD funds tied up that long, Bread Financial’s 9-month CD has a 4.15% APY, with a minimum opening deposit of $1,500.
And if you’d rather avoid a minimum deposit requirement, Capital One 360 CDs and Synchrony Bank CDs are worth considering. Neither requires a minimum deposit to open an account, and both currently offer a top rate of 4.00% APY — on Capital One’s 12-month CD and Synchrony’s 14-month CD, respectively. Synchrony also offers a bump-up CD, which means you can increase your APY when rates rise.
Happen Bank CDs
LendingClub Bank, N.A., Member FDIC
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Annual Percentage Yield (APY)
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Terms
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Minimum deposit
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Monthly fee
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Early withdrawal penalty fee
Early withdrawal penalty applies. For terms 1 year or less, the penalty is 90 days simple interest. For terms greater than 1 year, the penalty is 180 days simple interest.
Pros
- Above-average APYs on terms from 6 months to 5 years, with a straightforward range to pick from based on your timeline.
- $500 minimum deposit to open, keeping the barrier to entry relatively low.
- No monthly fees, so your earnings stay intact throughout your term.
Cons
- Your money is locked in for the duration of the term, so it’s important to feel confident about your timeline before opening.
- Early withdrawal penalties apply, at 90 days of interest for terms of a year or less and 180 days for longer terms.
- No physical branch locations, so all banking is handled online or by phone.
Bread Savings™ CDs
Bread Savings™ (formerly Comenity Direct) is a product of Comenity Capital Bank, a Member FDIC.
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Annual Percentage Yield (APY)
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Terms
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Minimum balance
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Monthly fee
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Early withdrawal penalty fee
Early withdrawal penalty applies. For terms shorter than 1 year, the penalty is 90 days simple interest. For terms 12 months to 3 years, the penalty is 180 days simple interest. For terms 4 years and up, the penalty is 365 days simple interest.
Pros
- Above-average APYs
- Range of CD terms
- No monthly fee
- Higher renewal rate automatically added to one-, two- and three-year CD account renewals
Cons
- $1,500 minimum deposit
- You can’t access your money before your CD term ends
- Early withdrawal penalty fee applies
- Doesn’t offer CD options beyond the traditional type
- No physical branch locations
Capital One 360 CDs
Capital One Bank is a Member FDIC.
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Annual Percentage Yield (APY)
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Terms
From 6 months to 60 months
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Minimum balance
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Monthly fee
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Early withdrawal penalty fee
A penalty may be charged for early withdrawal.
Pros
- Above-average APYs
- Range of CD terms
- No minimum balance
- No monthly fee
Cons
- You can’t access your money before your CD term ends
- Early withdrawal penalty fee may apply
- Doesn’t offer CD options beyond the traditional type
- Has physical branch locations, plus Capital One® Cafés
Synchrony Bank CDs
Synchrony Bank is a Member FDIC.
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Annual Percentage Yield (APY)
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Terms
From 3 months to 60 months
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Minimum balance
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Monthly fee
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Early withdrawal penalty fee
There may be an early withdrawal penalty if you withdraw funds from the principal prior to the CD maturity date (the last day of the CD term). The penalty is applied to the amount of principal withdrawn (there’s no penalty on interest). For the No-Penalty CD, early withdrawals are not permitted within the first 6 days after account funding. Following that, only withdrawal of the entire balance is allowed.
Pros
- Above-average APYs
- Nine-term options, from 3 to 60 months
- No minimum balance required
- Offers no-penalty, bump-up and IRA CDs
- If the rate on your CD goes up within 10 days of account opening, you’re automatically bumped up to the higher rate
Cons
- No physical branches
- Synchrony doesn’t offer checking accounts
APYs are subject to change at any time without notice. Offers apply to personal accounts only. Fees may reduce earnings. For CD accounts, a penalty may be imposed for early withdrawals. After maturity, if your CD rolls over, you will earn the offered rate of interest for your CD type in effect at that time.
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Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
