The offer mentioned below for Newtek Bank is no longer available.
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 Bank CDs
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.
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 4.20% 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 4.40% 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
Annual Percentage Yield (APY)
From 3.40% to 4.20% APY
Terms
From 6 months to 5 years
Minimum deposit
$500
Monthly fee
None
Early withdrawal penalty fee
For terms of one year or less, the penalty is 90 days of simple interest. For terms greater than one year, the penalty is 180 days of simple interest.
Terms apply.
Pros
- Above-average APYs
- $500 minimum deposit
- Earned interest can be transferred to a Happen Bank checking or savings account
Cons
- No physical branches
Bread Savings™ CDs
Annual Percentage Yield (APY)
From 3.80% to 4.50% APY
Terms
6 months to 5 years
Minimum deposit
$1,500
Early withdrawal penalty
For terms of less than 12 months, the penalty is 90 days of simple interest. For terms of 12 months to three years, the penalty is 180 days of simple interest. For terms of four years or longer, the penalty is 365 days of simple interest.
Terms apply.
Pros
- Above-average APYs
- Wide range of terms
Cons
- $1,500 minimum deposit
- Doesn't offer no-penalty or bump-up CDs
- No physical branches
Capital One 360 CDs
Annual Percentage Yield (APY)
From 3.50% to 4.50% APY
Terms
From 6 months to 60 months
Minimum balance
None
Monthly fee
None
Early withdrawal penalty fee
A penalty may be charged for early withdrawal.
Terms apply.
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
Annual Percentage Yield (APY)
From 0.25% to 4.35% APY
Terms
From 3 months to 60 months
Minimum deposit
None
Monthly fee
None
Early withdrawal penalty fee
There may be an early withdrawal penalty if you withdraw funds from the principal prior to the CD maturity date, applied to the amount of principal withdrawn. For the no-penalty CD, early withdrawals are not permitted within the first 6 days after account funding. After that, only withdrawal of the entire balance is allowed.
Terms apply.
Pros
- Above-average APYs
- Nine term options, from 3 to 60 months
- No minimum deposit
- Offers no-penalty, bump-up and IRA CDs
- If the rate increases within 10 days of account opening, you're automatically bumped up to the higher rate
Cons
- No physical branches
- No-penalty CD doesn't allow partial withdrawal
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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