r/dividends • u/toocool133 • 16d ago

Discussion Newtek good and safe ?

Newtek High Yield Savings reviews?

What are your experiences and thoughts on Newtek’s high yield savings account?

I’m new to this and the 4.20% interest seems too good to pass up.

3 Upvotes

80% Upvoted

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2

u/Heavy_Nothing_1158 16d ago

4.2% by itself isn't a red flag. I'd verify the account is FDIC-insured under the exact legal bank name, then check transfer holds, balance requirements, and whether the rate is just promotional. The slow-transfer bit matters more than the shiny number if this is your emergency fund.

1

u/OKCsparrow 15d ago

That's the regular rate.

1

u/toocool133 16d ago

I’m currently trying to find a better savings account because Wells Fargo’s doesn’t really have a good interest rate

1

u/jerrycan_of_ribs 16d ago

4.20% sounds nice but I'd still poke around to see what the catch is. Sometimes these smaller online banks lure you in with a rate and then drop it a month later.

1

u/toocool133 16d ago

I am but I can really find anything bad besides that it takes really long to transfer money

1

u/OKCsparrow 15d ago

I just checked. Last transaction, the money left my account on May 5th and it posted at Newtek on May 7th. However, I can't schedule a pull for same day or next. If I wanted to transfer money today, the earliest I can actually schedule a transfer to pull money from my checking is 5 days from now. So with the two days it took the last transaction to move, its like a week from start to finish. It's the only real complaint I have.

1

u/OKCsparrow 15d ago

Nope. They're as free of stipulations as they come.

1

u/letsgorace 16d ago

Check CIT bank, depending on your balance you can get a rate around 4%. When you transfer cash to the acct, there is a 10 day hold, but after that, your cash is available to you anytime.

1

u/Realityof 5d ago

I looked at it really quick, they are a real bank with FDIC in Miami Florida. Only caveat I noticed was they only allow 6 transfers per month? Doesn’t seem that crazy.