Friday, January 18, 2013 - 12:04 PM

What's Wrong With Everbank?

I like to think of myself as being the sharpest tool in the shed. But I'll share a secret with you, only for purpose of garnering sympathy on this thread: I'm not!!

So I hope somebody will reach down and offer me the dopeslap I might well need at this point. Like others, I've been caught up in the TIAA move to lower interest rates. I found EverBank, though, and what appears to be a six month reprieve for up to $150,000. IOW, I can continue to earn the 1.25% interest rate I like on liquid funds at EverBank for the next six months. Guaranteed. Superficially it seems to me a good deal. Hence, my question:

What am I missing?

If there is one, what is the catch at EverBank? I'm aware of the minimum balance requirements, which appear reasonable to me. $100,000 of the EverBank money would be in their checking account. Are there special requirements for that account, must the account be used a certain way or have a minimum number of transactions per month? I could not locate any such requirements, but as I wrote earlier, I'm also not the sharpest tool out there. I did read Ken's latest writeup on EverBank and found nothing disturbing. But Ken has not posted on EverBank for a while. There might be unwanted changes.

I've also searched here on the DepositAccounts.com website for a better deal than the one (which appears to be) offered by EverBank. I found nothing close. What am I missing???? Another six months at 1.25%, guaranteed, seems almost too good to be true. When something appears too good to be true it oftentimes is!!

Kaight24 posts since
Dec 5, 2011
Rep Points: 594

Edit | History

The 1.25% interest rate being offered by EverBank on up to $150,000 of liquid funds appears really good. But is there a catch???

Quick
Summary

1. Friday, January 18, 2013 - 12:45 PM

I believe this is a legit deal. In the past I've seen reports from readers who said that it can take awhile to open the account and fund it. That was a bigger downside when the rate guarantee was only 3 months instead of 6 months. If anyone has recent experience, please share.

Here are two potentially gotcha fees at EverBank:

1) checking account: If the average daily balance falls below $5,000, online bill pay usage will cost $8.95 per month. Online bill pay is optional.

2) money market account: $8.95 monthly fee if the average daily balance falls below $5,000

I'm not aware of other gotcha-type fees.

FYI, my last review of EverBank and this intro rate was last June.

KenBDG5,153 posts since
Nov 29, 2009
Rep Points: 117,145

2. Friday, January 18, 2013 - 2:34 PM

Thank you, Ken, for your incredibly helpful, authoritative, post. I guess EverBank is OK after all!

This is great news for TIAA refugees. Why settle for 1% on your liquid funds when you can achieve 1.25% guaranteed for six months. That appears, to me at least, the best liquid funds deal out there today.

Possible exception:

Those who opened the CD special at DCU a few weeks back might choose that route instead of EverBank. It's an eight month add-on CD. The funds will not quite be liquid . . but given the short term of the CD it's close.

Kaight24 posts since
Dec 5, 2011
Rep Points: 594