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Everbank Treasury Yield Based - 5 Year CD

Wednesday, May 7, 2014 - 3:07 PMEverBank - Details
Other than the bet that rates will rise (you get zip if the rates drop) - has anyone spotted other negatives with this product.  No withdrawl during the 5 years term, but I did not spot any other GOTCHAs in this offering??  Review comments, pls !!
2
Anon456Anon45630 posts since
Oct 30, 2011
Rep Points: 76
1. Wednesday, May 7, 2014 - 4:19 PM
Would you please advise where you are getting the information that one cannot withdraw during 5 years ?    Is there no early withdrawal penalty with EverBank's CDs?  I used EverBank CDs for years through our brokerages and never had a problem with them. However, this is quite differently from buying them for personal accounts.
2
paoli2paoli21,372 posts since
Aug 10, 2011
Rep Points: 6,011
2. Wednesday, May 7, 2014 - 4:47 PM
Wow!  Live and learn.  I just got off the phone with the rep at Everbank.  Anon456:  She said they have their regular 5 year CDs which have the EWP which is 1/4 of the total interest that would have been earned and the one you seem to be referring to is their "Marketable CD".  It is based on the 10 year Treasury Yield and only the Principal is guaranteed after 5 years.  It is basically a new type of 5 year CD but one cannot get annual or other interest from it.  It is definitely not for someone like myself who lives on their CD interest.  There is no guarantee of interest according to "Michelle" and the only thing guaranteed is that you will get your principal back after 5 years.  You cannot break it under any reasons.  The "Gotcha" to me is that I may be loaning them my money and after 5 years it "can" get returned to me without any additional interest earned or very little interest.  This would be like gambling to me and I would have to stress out for 5 years wondering if this product is going to earn me "any" interest.    Not a product I would touch.  The only good thing about it I can find is that one gets their principal back.  My money has to always be working for me and this is like sending it on a 5 year vacation.  Thanks for making us aware of this product.
6
paoli2paoli21,372 posts since
Aug 10, 2011
Rep Points: 6,011
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