EverBank has made some large rate increases on its Yield Pledge CDs. It now has the best nationwide deal on a 12-month CD with a 4.06% APY. Other competitive rates include a 3.73% APY 9-month CD and a 4.51% APY 30-month CD. The minimum deposit is $1,500. The yields of all the terms are shown below:
Certificate of Deposit Rates as of 6/20/08:
Early Withdrawal Penalties
The early withdrawal penalties for the long terms are more severe than average, but the penalty for the short terms are not too bad. Here's the list of penalties from the Truth-In-Savings disclosure (pdf):
CD Term Penalty in days of simple interest
13 week 90 days
26 week 90 days
52 week 180 days
2 year 360 days
3 year 540 days
5 year 900 days
Other Types of CD Accounts
One nice thing about EverBank is that it offers many different account types. CDs with these rates are available in the following accounts: Individual, Joint with Rights of Survivorship, Trust, IRA, Custodial, Sole Proprietor/Non-Profit, and Business/LLC.
FDIC Insured CDs for Balances Up to $50M
For those with very large balances, EverBank also offers a CD similar to CDARS. It's called Insured Advantage Certificate of Deposit. This provides FDIC insurance to balances up to $50 million. As with CDARS, the main problem is that the rates are lower than the standard CDs. The one year yield is only 3.72% APY.
EverBank's World Currency CDs
For those who are very worried about inflation and the weakening dollar, you may want to look into EverBank's World Currency CDs. Note, you can lose money in these due to risks associated with currency fluctuations. For more details on these World Currency CDs, please refer to my World Currency CD post.
One downside with EverBank is its antiquated application process. I haven't looked into the application process since October 2007 when I did this EverBank review post, but there doesn't appear to be any changes since then. After you fill out the online application, you then have to print and mail it. Nothing gets submitted online. When applying for the checking account, readers have mentioned that this process has taken up to 3 weeks.
Even though the application has to be mailed in, you should be able to lock in the posted rate based on the postmark day of your mailed application. This is what the CSR told me last year in regards to the checking account and its 3-month rate promo. For more details about the application process, please refer to my EverBank review post.
Hard Credit Inquiry
One other note regarding opening EverBank accounts, it has been reported that EverBank does a hard credit pull. EverBank has a detailed description of their credit inquiry in the online application. Here's an excerpt:
What kind of inquiry does EverBank obtain and how will it affect my credit score?
EverBank obtains a credit inquiry for the purposes of opening an account. While such an inquiry will show on your credit report, it's coded differently than an inquiry for a loan and would have less of an impact on your credit score.
Your EverBank application will result in a single inquiry, even if you apply for several products at the same time.
If you want to understand more of the issue of hard and soft credit pulls, their details provide the full explanation.
EverBank's Checking Account Promotion
If you are interested in the EverBank CD, you may want to consider opening the checking account first so you can take advantage of the 4.01% 3-month promotion. I've been told several times by EverBank's customer service that you have to be a new EverBank customer to qualify for this intro rate. So once you open an EverBank CD, you would no longer be eligible for this promo. EverBank's FreeNet Checking account doesn't have any minimum balance requirements or monthly fees (There's a potential monthly fee if you use their online bill pay). For more details of this checking account and this 4.01% promotion, please refer to my EverBank review post.
EverBank has been FDIC insured since 1998 (Certificate # 34775). It's one of the larger internet banks with $5.9 billion in assets. The bank has a 3 star rating (performing) at Bankrate.com based on 12/31/07 data. This is down from 4 stars from 6/30/07 data. BauerFinancial gives them 3.5 stars (good) based on 3/31/08 data.