# Update on EverBank's Money Market and Checking Accounts

POSTED ON BY Ken Tumin

**Update 6/2/09:**The new 3-month intro rate is 3.01%.

**Update 3/2/09:**The new 3-month intro rate is 2.51%.

**Update 2/2/09:**The new 3-month intro rate is 3.51%.

EverBank reduced its rates today. The 3-month promotional APY was reduced from 4.76% to 4.01%. Note, EverBank only lists the promo interest rate of 3.93%. The APY they list for the Money Market Account is 3.41% for $50K and less. Note this is the first-year APY. It combines the 3-month bonus rate of 3.93% and assumes the rate for the next 9 months will be the current ongoing rate of 3.16%. This averages out to a rate of 3.35% and an APY of 3.41%. Below is a summary which will should help clarify these rates:

**New APYs and rates as of 11/01/2008**

**first 3 months:**4.01% APY, 3.93% rate (rate is guaranteed for first 3 months)**second 9 months:**3.21% APY, 3.16% rate (Current ongoing rate, not guaranteed)**average over 12 months:**3.41% APY, 3.35% rate (assuming last 9 months of current ongoing rate)

**Previous APYs and rates**

**first 3 months:**4.76% APY, 4.65% rate (rate is guaranteed for first 3 months)**second 9 months:**3.51% APY, 3.45% rate (Current ongoing rate, not guaranteed)**average over 12 months:**3.82% APY, 3.75% rate (assuming last 9 months of current ongoing rate)

**How EverBank Reports the Yields**

EverBank used to list the 3-month bonus in terms of APY. This had been 4.76% APY (4.65% rate). A couple of months ago they changed from advertising a 3-month promotional APY of 4.76% to a 3-month promotional interest rate of 4.65%. I kept 4.76% APY in my weekly summaries since I use APY to compare account yields. APY is typically used to compare accounts since it factors in compounding.

It had appeared that EverBank reduced its promo yield from 4.76% to 4.65%, but it just changed how it reported the rates. This confusing change had many readers think the rate had dropped, and they kept posting this in the comments. So I did this post to describe this detail so I can just point people to this post when they think my posted rate is old.

I think EverBank changed due to how regulations require banks to report APY of savings accounts. An APY of 4.01% would imply that if you put $1,000 into an account, it would grow to $1,040 after one year. However, since 4.01% APY applies only for the first 3 months, the balance after one year will be less. Assuming the ongoing rate will be 3.16% for the last 9 months, the balance after one year will be only $1,034.

In my opinion, the new way EverBank reports the 3-month promo APY is confusing. Listing the first-year APY doesn't make it easy to compare it with other promos and other ongoing APY's. So I'm going to keep converting this to the current APY when I list it in my weekly summaries. Savings accounts are variable rate accounts, and it's well known that rates will likely change during a year. So listing a first-year APY for a savings account is not useful in my opinion.

Note, EverBank's checking and money market accounts compound daily (see Truth-in-Savings disclosures). To derive the APY from interest rates with different compounding, please refer to BankRate.com's Compound Interest Calculator.

**Account Overview**

An important point for EverBank's intro rates is that there are balance caps. Balances over this cap don't qualify for the intro rate. The caps are:

- $50K for the Yield Pledge Money Market Account
- $100K for the FreeNet Checking Account

**Slow ACH transfers**. Readers have reported a transfer time from 4 to 6 days with at least 2 days of lost interest.- Limits on EverBank initiated ACH transfers: $10K/day and $50K/month
- No blocks on ACH transfers initiated on your non-EverBank accounts
- no limit on number of ACH links to your external bank accounts
- Free incoming wire transfers
- $25 outgoing wire transfers (domestic)

To review more details of these accounts, please refer to my EverBank account reviews.

EverBank has been FDIC insured since 1998 (Certificate # 34775). It's one of the larger internet banks with $6.02 billion in assets. The bank has a 4 star rating (sound) at Bankrate.com based on 6/30/08 data. This is up from 3 stars from 12/31/07 data. BauerFinancial continues to give them 3.5 stars (good) based on 6/30/08 data.

(anonymous)posted on