For several years EverBank had offered a 3-month intro rate for its checking and money market account. That ended last year, but now they have brought back the intro rate with a change. The new intro rate now applies for the first 6 months. The downside is the intro rate isn't as great as the old ones. The current promotion offers a 1.05% rate guaranteed for 6 months from account opening. Everything else about the promo looks to be the same as the old one. The intro rate applies up to $50K for the Yield Pledge Money Market Account and up to $100K for the Yield Pledge Checking Account. Customers must be first-time holders of these accounts to qualify.
When the promo rate ends, the standard rates takes effect. Those are currently a little low compared to other internet banks. The standard money market rate is 0.76% for all balances. The standard checking account is a tiered-rate account with a top rate of 0.76% for balances of at least $100K.
One thing confusing about how EverBank advertises the intro rate is that the bonus APY is lower than the bonus rate. For the money market account, the bonus rate is 1.05% and the bonus APY is 0.91%. The listed bonus APY is actually the APY for the first year. So it's the average of 1.05% and the current standard APY of 0.76%. Note, only the bonus rate of 1.05% is guaranteed to last. The standard APY may fall at anytime. Update 3/7/12: EverBank's bonus APY is consistent with federal regulations which define the rules about reporting APY.
Over the last year, I haven't covered EverBank much since its rates have been a little low as compared to other internet banks. Update 3/7/12: EverBank does guarantee that its Yield Pledge accounts will remain in the top 5% of competitive accounts nationwide. This doesn't mean they will be a rate leader for internet banks, but at least this will prevent EverBank from being an internet bank dud like WTDirect.
EverBank's checking account does offer some nice features:
- Online check deposit allows you to deposit checks at home with a PC and scanner
- Mobile banking
- Automatic reimbursements of all U.S. ATM fees with a minimum $5K balance
- Online ACH transfers (limit of $50K/day and $200K/month)
One downside with EverBank's checking is that you have to maintain a $5K balance to qualify for free online bill pay. If the average daily balance falls below $5K, online bill pay will cost $8.95 per month. Online bill pay is optional.
Other than this potential monthly fee for online bill pay, there's no monthly service charge regardless of the balance.
EverBank's money market account has a $8.95 monthly fee if the average daily balance is below $5,000.
EverBank also offers interest business checking accounts with rates similar to the non-promo Yield Pledge Checking rates. As of last July banks are allowed to pay interest on business checking accounts.
EverBank is one of the big internet banks that has a long history. Its overall health score at DepositAccounts.com is 4 stars (out of 5) with a Texas Ratio of 40.16% (below average) based on December 2011 data. Please refer to our financial overview of EverBank for more details. EverBank has been a FDIC member since 1998 (FDIC Certificate 34775).
How This Intro Rate Compares
With some internet savings accounts offering over 1.00% (like TIAA Direct which pays 1.25%), this EverBank intro rate may not seem that appealing. However, those rates could fall at anytime.
If you compare this EverBank promotion to a 6-month CD, it looks much more competitive. The best nationwide deal for terms around 6 months is at KeySource Commercial Bank which is offering a special 1.00% 7-month CD. Another good deal is Ally Bank's 11-month no-penalty CD which has a 0.93% rate. The no-penalty feature allows the customer to make the CD have any term she wants from 7 days to 11 months.