EverBank has increased its 6-month intro rate from 1.10% to 1.40% on its Yield Pledge Checking and Yield Pledge Money Market. The ongoing rates remain the same and are still a little low compared to other internet banks. For the money market account, the ongoing rate is 0.61%. For the checking account, the ongoing rates range from 0.30% for balances under $10K to 0.61% for balances of $100K and above.
The intro rate applies up to $50K for the money market account and up to $100K for the 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 rates.
It's nice to see a rate increase even though this won't help existing EverBank customers. It’s interesting to note that this new intro rate allows EverBank to advertise a 1.01% APY. So the change is likely intended to help it compete with the internet banks that are offering a 1% APY. EverBank calls this APY its "1st-year APY". This is based on the average of 6 months of a 1.40% rate followed by 6 months of a 0.61% rate. It's important to note that only the 6-month intro rate of 1.40% 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 Yield Pledge Checking and Money Market Account Features
EverBank's Yield Pledge Checking account does offer some nice features:
- No monthly service fees
- Automatic reimbursements of all U.S. ATM fees with a minimum $5,000 balance
One downside with EverBank’s checking used to be its online bill pay. There used to be a fee for its online bill pay when the customer’s balance was below $5K. That appears to have changed. Bill pay is now free regardless of the customer’s balance.
The main downsides now are a $1,500 minimum initial deposit and low rates, especially for low balances.
EverBank's money market account has the benefit of just one top rate for all balances.
There also has been a nice change to the money market fee structure. There used to be a monthly fee when the balance fell below $5K. That appears to have changed. There is now no monthly fee regardless of the balance.
EverBank customers with either the checking or the money market account have the following banking services available:
- Online and mobile check deposit allows you to deposit checks at home with a PC/scanner or a smartphone
- Mobile banking
- Online bank-to-bank ACH transfers (limit of $50K/day and $200K/month)
EverBank Business, IRA, Trust and Custodial Accounts
EverBank is one of the few internet banks that offers business and IRA accounts, and personal accounts can be opened as a trust account or a custodial account.
The Yield Pledge Money Market Account can be opened in an IRA with the same intro rates.
The Small Business Checking Account has the same intro rates and ongoing rates as the personal Yield Pledge Checking Account. This is only for sole proprietors. Partnerships, LLCs and corporations can open the Business Interest Checking Account. This doesn’t have the intro rate special, and to get the top ongoing rate a $1 million balance is required. Note, in 2011 banks were finally allowed to pay interest on business checking accounts.
EverBank is one of the big internet banks that has a long history. 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 all of its domestic banking products listed on the website are available at its branches.
EverBank has an overall health grade at DepositAccounts.com of a B with a Texas Ratio of 17.14% (above average) based on March 2014 data. Please refer to our financial overview of EverBank for more details. EverBank has been a FDIC member since 1998 (FDIC Certificate 34775).