DA readers are probably quite familiar with EverBank’s Yield Pledge Money Market Account and Yield Pledge Checking introductory rate guarantee. This promotion had been available to new clients for several years, with the original offering including a three month rate guarantee. In March 2012, the rate guarantee term was increased to six months, while the APY dropped to 1.05%.
In the past two years, there were two intro rate increases (1.40% and 1.60%), with the term guarantee remaining at six months. The balance cap on the Yield Pledge Money Market was increased to $150k in June 2014, while the Yield Pledge Checking’s balance cap has remained at $100k.
This somewhat long-winded prologue leads up to the latest change: the intro guarantee is now 1.11% APY for 1 year, rather than 1.60% for six months, with the balance caps remaining the same.
|1.11*%||-||$150k||EverBank||Yield Pledge Money Market - First Time Client (1st Yr)|
|1.11*%||-||$100k||EverBank||Yield Pledge Checking - First Time Client (1st Yr)|
EverBank had previously described this promotional intro rate as "1st Year APY," which was a bit of semantic sleight-of-hand, since it could be inferred that the stated APY would be guaranteed for a year. In fact, the prevailing rate for the second six months of the first year had no guarantee. This issue of a balance-dependent APY for the first year was addressed in the previous version of EverBank’s disclosure:
The New Account First Year APY is a required disclosure that is a blended APY that combines the Bonus Interest Rate with the current ongoing interest rates. This isn't the exact APY you will earn since our current ongoing interest rates may change periodically over the last six months of your first year.
The disclosure for the new one-year guarantee reads,
The 1-year introductory APY for balances (i) up to $150,000 is 1.11%, and
(ii) from $150,000.01 to $10,000,000 is best expressed as a range: 1.11% to 0.62%.
As stated earlier, this promotion rate is only available to first-time holders of the Yield Pledge Checking account and/or the Yield Pledge Money Market account, and according to the fine print, requires new money.
Accounts opened and initially funded with money transferred from
another EverBank account are not eligible for the 1-year introductory APY.
EverBank still maintains its promise that,
The yield on your Yield Pledge Checking and/or Money Market Account
will stay in the Top 5% of Competitive Accounts based on Bankrate
Monitor National Index survey data from the last week of each month.
If I were an "interest maximizer," I would probably view the change to the 1-year rate guarantee as not being advantageous. The previous version of the Yield Pledge Money Market was essentially a 6-month CD earning 1.60% APY with no Early Withdrawal Penalty.
Easy in, easy out.
With the recent guarantee change, the Yield Pledge Money Market has become a de facto 1-year CD earning 1.11% APY. Currently, there are 19 nationally available 1-Year CDs with higher APYs, ranging from 1.15% APY to 1.40% APY, and with larger balance caps.
Yield Pledge Checking
While complete details about the Yield Pledge Checkingaccount can be found on EverBank's website, a few of the features are as follow:
- $1,500 minimum opening deposit
- No monthly fee
- Free bill pay services
- Unlimited ATM fee reimbursement with minimum balance of $5,000
- Mobile check deposits
- ApplePay® supported debit card
I would like to thank to the DA member who contacted me with about this interesting change.
Headquartered in Jacksonville, Florida, EverBank is an internet bank that has brick-and-mortar branches that were part of the acquisition of Bank of Florida in 2010. Those ten branches are located through the state in Clearwater, Coral Gables, Fort Lauderdale (2), Fort Myers, Jacksonville (4), and Naples.
Both the Yield Pledge Checking account and Yield Pledge Money Market account can be opened using EverBank’s online application or at any of the above mentioned branch locations.
EverBank (FDIC Certificate # 34775) has an overall health rating of "B" at DepositAccounts.com, with a Texas Ratio of 30.65% (average), as of March 31, 2016 data. In the past year, EverBank has increased its total deposits by $2.95 billion, an excellent annual growth rate of 18.24%. 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 $26 billion and over 500,000 customers.
How the Yield Pledge Money Market Compares
When compared to the 111 Money Market Accounts tracked by DepositAccounts.com that are available nationally, EverBank’s Yield Pledge Money Market 1st Year APY currently ranks second.
The above rates are accurate as of 6/16/2016.