Deal Summary: 12-month CD, 1.40% APY, $5k minimum deposit.
In early January, I wrote about EverBank having the top 1-year CD rate for internet banks. In the last two months, other internet banks have taken the lead, but today, EverBank raised its 1-year Yield Pledge CD rate by 6 bps to 1.40% APY. It’s now tied with PurePoint Financial’s 1-year CD rate for the top 1-year internet bank CD.
|1.60%||$5k||-||EverBank||1 Year Yield Pledge CD|
|1.60%||$5k||-||EverBank||1 Year Yield Pledge IRA (Traditional, Roth)|
Friday is a common day for EverBank rate changes. In addition to this 1-year CD rate increase, EverBank increased its 18-month CD rate by 1 basis point to 1.42% APY. The other Yield Pledge CD rates remain the same. Many are very competitive including the 2-year (1.60% APY), the 3-year (1.81% APY) and the 5-year (2.30% APY).
The minimum opening deposit for the Yield Pledge CD is $5k, and according to the Important Disclosures,
These interest rates and APYs are applicable to CD principal balances up to $1 million.
Please call for interest rates and APYs applicable to CDs exceeding $1 million.
The Yield Pledge CD is also available as an IRA (Traditional and Roth), earning the same APY with the same funding requirements.
EverBank’s Early Withdrawal Penalty (EWP) has been a source of contention for many DA readers. There was 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 read 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the principal balance of the account if funds had not been withdrawn prior to the maturity date.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
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.
The Yield Pledge CD 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% (average), 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 CD Compares
When compared to the 249 similar length-of-term CDs tracked by DepositAccounts.com that require a similar deposit and are available nationally, EverBank’s 1-Year Yield Pledge CD APY currently ranks fourth. When compared only to internet banks, the1-Year Yield Pledge CD APY shares the top spot with PurePoint Financial’s 12-month online CD.
The above rates are accurate as of 3/3/2017.