EverBank has raised its 6-month intro rate from 1.05% to 1.25%. 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. After the first 6 months, the rate will fall to the ongoing standard rate. That rate is currently 0.76% for all balances of the money market account. For the checking account, 0.76% is currently the top tier rate for balances of at least $100K.
It's nice to see a rate increase even though this won't help existing EverBank customers. I wonder if the higher rate was intended to help EverBank compete with the new internet banks. One of those new internet banks, TIAA Direct, continues to offer a 1.25% APY on its savings and money market accounts. This isn't an intro rate, but it's likely that this rate won't hold up over the long run. At least with EverBank, the rate is guaranteed to last for 6 months. After 6 months, the rate will fall, but at least it should remain fairly competitive. EverBank does guarantee that its Yield Pledge accounts will remain in the top 5% of competitive accounts nationwide. You can get a sense of that guarantee based on the current EverBank money market rate of 0.76%. It's just under the saving account rates of some of the big internet banks like ING Direct (0.80%), Discover Bank (0.80%) and Ally Bank (0.84%).
Another interesting thing to note about this intro rate increase is that it pushes up the first year APY to 1.01%. That is the APY that EverBank can advertise and will is used to compare against other banks. The first year APY is based on the average of 6 months of a 1.25% rate followed by 6 months of a 0.76% rate. It's important to note that only the 6-month intro rate of 1.25% is guaranteed. The standard rate may fall at anytime. Here's how EverBank explains why they list the APY this way:
The law requires that we calculate this blended APY for you, so that you have an estimated annualized figure that is based on your average daily collected balance. This isn't the exact APY you will earn since our current ongoing Rates will change periodically over the last six months of your First Year.
EverBank Checking & Money Market Account Features
EverBank's Interest Checking account does offer some nice features:
- No monthly service fees
- Automatic reimbursements of all U.S. ATM fees with a minimum $5K balance
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.
Another downside with EverBank's checking is the rate tiers. The rates go down quite a bit as the balance falls below $100K. For example, The rate for balances of $10K to under $25K is currently 0.56%. That's 20 basis points under the current top tier rate of 0.76% for balances of at least $100K.
EverBank's money market account has the benefit of just one top rate for all balances. However, there's a $8.95 monthly fee if the average daily balance falls below $5,000.
EverBank customers with either the checking or the money market account have the following banking services available:
- Online check deposit allows you to deposit checks at home with a PC and scanner
- Mobile banking
- Online bank-to-bank ACH transfers (limit of $50K/day and $200K/month)
EverBank Business Checking Accounts
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 went public in early May, and the stock is still trading above its IPO price.
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 38.10% (below average) based on March 2012 data. Please refer to our financial overview of EverBank for more details. EverBank has been a FDIC member since 1998 (FDIC Certificate 34775).