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EverBank Update - the Other 6% Savings Account Promo

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EverBank
EverBank has long been offering its 6.01% APY 3-month promotion for its FreeNet Checking Account. As interest rates were rising in 2005 and 2006, the promo rate was going up about every quarter. Finally it peaked at 6.01% APY last September. EverBank then started offering a similar 6.01% APY promo for its money market account. With the 6% FNBO Direct savings account promotion that's available through September (see post), this EverBank promo has lost its luster. But EverBank and its FreeNet Checking and Yield Pledge Money Market accounts do have some features that may make them better for some people. In this post I'll list some new details that I've recently learned and some links to my past posts on EverBank. Note, EverBank just announced last week that it's acquiring most of Net Bank (see post).

Promo and Account Details

For the full details of EverBank's checking account and the promo, please see this post. For details on the money market account and its promo, please see this post.

Few New Details

I called EverBank last week and was told that new customers could do both the checking and money market account promo at the same time but you can't do them one after the other. This would allow 6.01% APY on $100K in the checking and $50K in the money market account for the first 3 months. Above those amounts, you'll earn the standard rates.

The standard rates for the money market account has been competitive since March when they raised the rate to 5.01% APY. It does require a minimum balance of $1,500 to avoid a $4.95 monthly fee.

Custodial Accounts

One thing EverBank has that FNBO Direct and many other online banks don't provide are custodial accounts, non-profit accounts and trust accounts. A few of my readers have asked about online banks that allow custodial accounts. There can be some tax advantages of setting up a custodial account for your child. Wells Fargo has a good summary about custodial accounts.

Downsides

There are some downsides with EverBank's accounts. The first two issues relate to their electronic funds transfer service in which you can initiate ACH transfers to and from your non-EverBank accounts. First, the transfers are slow. Readers have reported a transfer time from 4 to 6 days with at least 2 days of lost interest.

The second ACH issue is that EverBank limits the amount that can be transfered using their system to $10,000 per day and $50,000 per month. I was told this when I called last week. I was also told that they don't block ACH transfers initiated from your non-EverBank accounts, so that may be the best way to fund the accounts.

The third issue is their application process. Nothing gets submitted online. You have to print it out and mail it in along with your check for the initial funding. Several readers who have gone through the application have been concerned about the level of security.

Summary

I haven't done this EverBank promotion, but I may give it a try when FNBO Direct's promo ends in September. That assumes EverBank is able to maintain the 6.01% APY promo. If we're lucky, perhaps they'll be pushed to raise the promo rate to compete with FNBO Direct.

  Tags: EverBank, checking account, savings account

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Comments
11 Comments.
Comment #1 by Anonymous posted on
Anonymous
Will it be considered a new account if you have at one time had an account with them.

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Comment #2 by Anonymous posted on
Anonymous
It's very important to verify whether or not you'll be qualified as a 'new customer' if you had ever established an account w/ Everbank. I was assured that if my account was over a year past that I would be eligible for the promotion rate but after opening my new account I was told by another CSR that this is not the case so if you ever have a relationship with Everbank I would be very skeptical of whether you can reap the benefits of any promotions being offerred.

1
Comment #3 by Anonymous posted on
Anonymous
Why would you say "this EverBank promo has lost its luster" when the rate is equal to FNBO's and runs for 3 months from the time you open the account? I opened my own account several weeks ago and so far it's been one of the best experiences I've had with an online bank. Everything has gone smoothly.

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Comment #4 by Anonymous posted on
Anonymous
Banking guy was totally right to say that the EverBank promo has lost its luster, because the FNBO promo runs longer. Furthermore, your experience with online banking must be limited, if you think EverBank is one of the best you've had. Afterall, their sign-up process alone, is one of the worst.

1
Comment #5 by jackcrawfish (anonymous) posted on
jackcrawfish
I'm opening both accounts via mail today.

1
Comment #6 by Anonymous posted on
Anonymous
I had a credit card with Everbank that I closed 6 years ago. When I called, they said that I was NOT eligible for the 6.01% APY since I was a prior customer.

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Comment #7 by DollarBill (anonymous) posted on
DollarBill
Since I closed an EverBank account (titled in my name only) in August 2005, I called and was told I was ineligible for the 6.01% promo. I then called back and asked if a joint account with my wife would be eligible if I used her SS# as the primary account holder. Once again was told I/we are ineligible for the promo rate as I would still be in their system.

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Comment #8 by DollarBill (anonymous) posted on
DollarBill
test

1
Comment #9 by DollarBill (anonymous) posted on
DollarBill
test

1
Comment #10 by Anonymous posted on
Anonymous
Should be called "forever" bank...that's how long you should expect to wait for them to set up your account after application (3 weeks and I still can't log in).

1
Comment #11 by Anonymous posted on
Anonymous
Everbank is abysmally slow. They can take weeks to complete transactions. It takes them almost a week just to transfer money from their World Markets account (whose 1.5% fee per transaction really eats into the earnings) to their plain-vanilla checking account. Another three or four business days to transfer money to an external account. Weeks to set up your initial account.

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