EverBank's 5-year CD had been a rate leader for part of last month. Even though its 5-year CD rate is no longer the highest, it remains competitive with a 1.91% APY as of 9/3/2013. The rate just went up a little last week. EverBank has some advantages over other online banks. First, its IRA CDs have the same rates as the regular CDs, and you can apply for the IRA CDs using an online application. Second, EverBank is one of the few internet banks that allows for both trust accounts and custodial accounts.
If you are considering EverBank’s IRA CDs, there are a few important details that you should be aware of. First, the early withdrawal penalty is a little confusing. Here’s an excerpt from the disclosure:
184.108.40.206. 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of the total interest that would have been earned on the principal balance of the account if funds had not been withdrawn prior to the maturity date.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 which is above average for early withdrawal penalties.
At some banks and credit unions, if you have an IRA CD and you have reached 59½, you have the option to make a penalty-free early withdrawal. For most cases, that’s not allowed at EverBank. Here’s what it says in the disclosure:
220.127.116.11. Yield Pledge IRA CD Provisions. For IRA Account Holders over the age of 59½, withdrawals of credited interest or as part of a required minimum distribution are penalty free. All other withdrawals are subject to the Yield Pledge CD Early Withdrawal penalty policy described above.
For more CD and IRA CD details, please refer to EverBank’s Personal Account Terms, Disclosures & Agreements document (available at EverBank’s terms & conditions page):
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 9/3/2013, 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 22.99% (average) based on June 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).
How EverBank IRA CDs Compare
Not all internet banks that offer top CD rates also offer top IRA CD rates. That’s the case for iGObanking.com and Salem Five Direct. To get a higher 5-year IRA CD rate, you’ll probably have to choose a credit union or a brokered CD.