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Higher Monthly Fees and Minimum Balance Requirements for EverBank's Yield Pledge Money Market Account


It's yet another example of banks raising fees. EverBank is changing their monthly fee on their Yield Pledge Money Market account. Readers have mentioned that they've received notice from EverBank of account changes that will be effective on June 1, 2009. The new fee is already listed in the Truth-in-Savings document located at the bottom of EverBank's Yield Pledge MMA page:
In any month when average monthly balance is below $5,000 monthly fee....$8.95

The minimum balance used to be $1,500 with a monthly fee of $4.95.

EverBank is not alone. Last month Amboy Direct announced a new monthly fee on its Premium Savings Accounts. Commenters in that post also mentioned that UFB Direct started charging a monthly fee of $5 for balances under $10K on its Absolute Savings Account. And Bank of America recently announced new fees on its MyAccess Checking account.

It's bad enough that we're facing record low interest rates on our savings. Monthly fees can turn the effective interest rate negative. For example, the ongoing yield on the EverBank MMA is currently 1.65% APY. With that interest rate, it takes a balance of about $6,500 just to earn $8.95 of interest in one month.

For those who want to take advantage of EverBank's 3-month intro rate of 2.51%, you may be better off with the FreeNet Checking which is still free of monthly fees if you don't have Online Bill Pay. Refer to this this post for more details on EverBank and these accounts.

Thanks to the readers who informed me of this higher fee.

  Tags: money market accounts, EverBank

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Comment #1 by Anonymous posted on
Easy answer people - its your money, you earned it - pull it out

Comment #2 by Anonymous posted on
I called to verify that Freenet Checking was still free. I was advised that a $10.00 balance is all that is needed to avoid a fee. Everbank appears to have a good foreign currency program. Though I have not used it yet, that is why I am keeping my account open after my 3 month promo rate.

Comment #3 by Anonymous posted on
I closed my account a couple of weeks ago. I used to use EverBank checking a few years ago when, along with NetBank, it was one of the few Internet banks with very competitive rates. However now that their fees are up and the interest rate is low I don't see any sense in staying with EverBank. Also, they charge a fee for billpay service, if the balance is less than the minimum required.

Now I'm quite happy with my Fidelity mySmart Cash account as a checking account. No fees at all! And I can buy money-market funds or any other investment right there.

Comment #4 by Anonymous posted on
what if i only have 1.65 in my account , will they charge me a fee

Comment #5 by Anonymous posted on
What's so despicable about the banks is that, in my case, neither UFB nor Amboy ever notified me by writing (whether snail mail or email) about the coming charges. Then they simply took my money and closed my accounts without ever telling me. I would have closed the accounts without hesitation if I had been notified. Fortunately -- or rather, in my opinion, unfortunately -- in both cases my balances were below $5, but it's still MY money, not theirs. In my opinion, these two banks are no better than common thieves.