The first week of the new year saw EverBank raising the APYs on many of its Yield Pledge CDs, resulting in competitive rates, particularly when compared to other internet banks. The minimum opening deposit for any of the Yield Pledge CD is $5k, with no stated balance cap.
The Yield Pledge CDs are also available as IRAs (Traditional and Roth), earning the same APYs with the same funding requirements.
As DA reader, cumulus, pointed out in a recent Forum post, EverBank’s higher-than-average Early Withdrawal Penalty (EWP) tempers the competitiveness of Yield Pledge CDs. As I noted in a blog post last week, there has been a change in the way in which the EWP is presented in the Personal Account Terms, Disclosures and Agreement booklet but the numbers haven’t really changed. The old version reads as follows:
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the principal balance of the account if funds had not been withdrawn prior to the maturity date.
The new version basically requires no computation on the part of the reader.
1-year CD - 91 days of simple interest
3-year CD - 273 days of simple interest
4-year CD - 365 days of simple interest
5-year CD - 456 days of simple interest
Headquartered in Jacksonville, Florida, EverBank is an internet bank that does have some brick-and-mortar branches that were part of the 2010 acquisition of Bank of Florida. Those ten Florida branches are located on both coasts in Boca Raton, Clearwater, Coral Gables, Fort Lauderdale, Fort Myers, Jacksonville (4), and Naples.
All Yield Pledge CDs can be opened by using EverBank’s online application or at any of the above mentioned branch locations.
EverBank (FDIC Certificate # 34775) has an overall health grade of “B+" at DepositAccounts.com, with a Texas Ratio of 9.75% (excellent), based on September 30, 2016 data. In the past year, EverBank has increased its total non-brokered deposits by $1.3 billion, an excellent annual growth rate of 7.34%. Please refer to our financial overview of EverBank for more details.
Publicly traded on the NYSE, EverBank was founded as the First Alliance Bank in 1998, and shortly afterwards acquired the Marine National Bank of Jacksonville. Within a year, EverBank acquired the world currency division from St. Louis’ Mercantile Bank. Currently, EverBank is one of the largest internet banks in the U.S., with assets in excess of $28 billion, and over 500,000 customers.
How the Yield Pledge CDs Compare
When compared to the similar length-of-term CDs tracked by DepositAccounts.com that require a similar deposit and are available nationally, all of EverBank’s Yield Pledge CD APYs currently ranks in the top three. When compared only to internet banks, the Yield Pledge CD APYs currently rank at the head of the list.
The above rates are accurate as of 1/10/2017.