EverBank recently increased the rates of its 4-year and 5-year Yield Pledge CDs. The new rates are not the highest available, but they’re very competitive, and it’s another sign that CD rates are responding to the recent Treasury yield hikes. The 5-year CD yield increased from 1.67% to 1.86%, and the 4-year CD yield increased from 1.46% to 1.61%. Minimum deposit is $1,500. These rates are listed at EverBank's Yield Pledge CD page as of 7/19/2013.
One downside with EverBank’s long-term CDs is a harsh early withdrawal penalty. According to page 50 of EverBank’s Personal Account Terms, Disclosures & Agreements document (available at EverBank’s terms & conditions page):
220.127.116.11. Early Withdrawal Penalties. We will impose an Early Withdrawal penalty on withdrawals made before the maturity date of the CD. This penalty will be equal to one-fourth of the total interest that would have been earned on the principal balance of the account if funds had not been withdrawn prior to the maturity date. [...]
For a 5-year CD that's 15 months of interest, and for a 4-year CD that’s 12 months of interest. Both are above average for early withdrawal penalties.
Yield Pledge Money Market and Checking Accounts
For those who don’t want to lock into a long-term CD, EverBank continues to have a good short-term deal. EverBank’s offers an attractive 6-month intro rate for its Yield Pledge Money Market and its Yield Pledge Checking. As of 7/19/2013, the 6-month intro rate is 1.10%. This applies to balances up to $50K on the money market account and $100K on the checking account. Also, the intro rate applies only to new money for first-time holders of the checking or money market accounts.
The current ongoing rate is 0.61% for the money market account. This is also the ongoing rate for the top tier of the checking account. For more details about these promotions and account features, please refer to my review of the EverBank checking and money market accounts.
EverBank operates as an internet bank offering its products online for people in all states. However, for those in Florida who prefer to bank at a brick-and-mortar office, you may also want to consider EverBank. They have several branches throughout the state, and I confirmed with EverBank that all of its domestic banking products listed on the website are available at its branches. I have more details in this EverBank Florida review.
EverBank has an overall health score at DepositAccounts.com of 4 stars (out of 5 stars) with a Texas Ratio of 24.70% (average) based on Mach 2013 data. It's one of the larger internet banks with over $18 billion in assets. Please refer to our financial overview of EverBank for more details. EverBank has been a FDIC member since 1998 (FDIC Certificate # 34775).