It’s been almost nine months since EverBank raised the rates on any of its CDs. That changed yesterday, when EverBank increased the rates on 15 Yield Pledge CDs/IRAs, ranging from 6 to 21 basis points.
The most impressive of the increases was a 21 basis point rate hike on the 3-year Yield Pledge CD (1.61% APY).
The minimum opening deposit for any of the Yield Pledge CDs is $1.5K, with no maximum balance cap. The CDs are also available as IRAs (Traditional and Roth) earning the same APYs, with the same funding requirements.
EverBank is well-known for its frequent rate changes and the 3-year Yield Pledge CD is no exception, with 15 rate changes over the past year. To quote myself from an earlier blog post, if you see a rate you like, lock into it while you can.
Some things bear repeating, like the Forum post by long-time DA reader and contributor, Cumulus: "always beware of Everbank’s harsh" Early Withdrawal Penalty (EWP). As stated on page 50 of the Terms and Conditions brochure, the EWP 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the principal balance of the account if funds had not been withdrawn prior to the maturity date.
That equates to a higher-than-average EWP of 270 days for the 3-year Yield Pledge CD.
Even though the EWP is substantial, EverBank does offer some advantages over other online banks, as I mentioned in a September 2014 blog post. Those advantages include:
- IRA CDs have the same rates as the regular CDs.
- IRA CDs can be opened through the online application.
- EverBank is one of the few internet banks that allows for trust accounts, custodial accounts, and business accounts.
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 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 30.65% (average), based on 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.
On August 8, 2016, EverBank announced that it had entered into a formal agreement to be acquired by TIAA. The acquisition is expected to close in the first half of 2017. According to TIAA's press release, "the combination of TIAA’s existing banking operations and EverBank will significantly bolster TIAA’s banking capabilities and form a full-service banking company."
How the CDs Compare
When compared to the 152 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 to the 116 similar length-of-term CDs tracked by DepositAccounts.com that require a similar deposit and are available nationally, EverBank’s 1.5-Year Yield Pledge CD APY currently ranks third.
When compared to the 147 similar length-of-term CDs tracked by DepositAccounts.com that require a similar deposit and are available nationally, EverBank’s 3-Year Yield Pledge CD APY currently ranks fourth, although it is the top-ranked 3-year CD offered by internet banks .
The above rates are accurate as of 8/27/2016.