EverBank did something today that it hasn’t done since 2011. It raised its 1-year CD rate to over 1%. EverBank increased its 1-year CD APY from 0.70% to 1.06%. It also increased its 18-month CD rate. That APY went up from 0.70% to 1.16%. Both new rates are now very competitive.
EverBank also increased its long-term CD rates. The 5-year CD APY increased from 2.20% to 2.27%, and the 4-year CD APY increased from 1.73% to 1.78%. Both new rates are very competitive, but unlike the short-term rate increases, these types of rate hikes have been common. EverBank regularly changes its CD rates each week, and the rates often go up and down. Typically, only EverBank’s 4-year and 5-year CD rates have been competitive.
|EverBank||2.30%||$1,500||-||5 Year Yield Pledge CD|
|EverBank||1.85%||$1,500||-||4 Year Yield Pledge CD|
|EverBank||0.69%||$1,500||-||1.5 Year Yield Pledge CD|
|EverBank||0.60%||$1,500||-||1 Year Yield Pledge CD|
One important downside with EverBank’s CDs is a harsh early withdrawal penalty (EWP). According to page 53 of EverBank’s Personal Account Terms, Disclosures & Agreements document dated Oct 2013 (available at EverBank’s terms & conditions page), the early withdrawal 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of the total interest that would have been earned on the principal balance of the account if funds had not been withdrawn prior to the maturity date. This EWP is harsh for long-term CDs. For example, the EWP for a 5-year CD is 15 months of interest which is above average for early withdrawal penalties. The EWP is closer to the average for a 1-year term. In that case it’s 3 months of interest.
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.
Yield Pledge Money Market and Checking Accounts
For those who don’t even want to lock in for one year, 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 4/25/2014, 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.
|EverBank||0.61%||$100k||$10m||Yield Pledge Checking - Ongoing Client|
|EverBank||0.61%||-||$10m||Yield Pledge Money Market - Ongoing Client|
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 grade at DepositAccounts.com of a B+ with a Texas Ratio of 17.35% (above average) based on December 2013 data. It's one of the larger internet banks with over $17 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).