It’s been more than a year since I wrote about TIAA, either as the former TIAA Direct or the current TIAA Bank. Written after the acquisition of EverBank, my June 2017 blog post noted that TIAA Direct and EverBank rates had begun to mirror each other, even though the two banks were operating separately.
Over the weekend, the newly minted TIAA Bank raised the rates on a few of its Yield Pledge® CDs, including the 1-year Yield Pledge® CD (2.61% APY). The minimum deposit is $5k, with no stated balance cap.
To review all the TIAA Bank’s CDs, please refer to our TIAA Bank CD rate table.
”Yield Pledge®” is not just a branding tool. According to the Yield Pledge® CD page,
We promise that the yield on your account at the time you open, renew, or roll your expiring CD into a new Yield Pledge® CD will be in the Top 5% of Competitive Accounts based on Bankrate Monitor National Index survey data from that week.
As stated in the CD FAQs, the Early Withdrawal Penalty reads as follows:
If your CD has a term of one year or less, the penalty is equal to 90 days of interest on the amount of principal withdrawn.
Thanks to DA readers, leemd and Saver5, for their Forum posts about TIAA Bank’s recent rate increases.
Opening a Yield Pledge® CD must be done online. Funding can be done by wire transfer from an outside bank, by check, or through a transfer of funds from an existing TIAA Bank account.
IRA, Trust, or Custodial accounts cannot be opened online, but “dedicated account opening support” for those type of accounts is available by calling 855.291.1840.
Headquartered in Jacksonville, Florida, TIAA Bank debuted in June 2018, a year after TIAA acquired EverBank, a well-known pioneer in digital banking. Immediately following the 2017 acquisition, TIAA Direct and EverBank operated as separate brands with separate products, although a rebrand was promised for the future. While the Bank’s new name clearly features “TIAA”, EverBank’s presence is seen in “Yield Pledge®” attached to several products.
TIAA Bank has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 3.09% (excellent) based on June 30, 2018 data. In the past year, TIAA Bank has increased its total non-brokered deposits by $2.04 billion, an excellent annual growth rate of 10.74%. Please refer to our financial overview of TIAA Bank (FDIC Certificate # 34775) for more details.
Teachers Insurance and Annuity Association (TIAA) was founded in 1918 by the Carnegie Foundation, establishing a fully-funded system of pensions for college professors. In June 2017, TIAA Direct acquired EverBank, becoming TIAA Bank and offering a significantly expanded product line and services. TIAA Bank is currently the 49th largest bank in the country, with assets in excess of $34 billion and more than 709,000 customer accounts.
How the Yield Pledge® CD Compares
When compared to the 212 similar length-of-term CDs tracked by DepositAccounts.com that require a similar minimum deposit and are available nationwide, TIAA Bank's 1-year Yield Pledge® CD APY currently ranks fourth.
|Interest Rate||CD Length of Term||Credit Union/Bank|
|2.75% APY||12-Month CD Special||USALLIANCE Financial|
|2.65% APY||13-Month CD||Synchrony Bank|
|2.63% APY||12-Month Online Promo CD||M.Y. Safra Bank|
|2.61% APY||1-Year Yield Pledge® CD||TIAA Bank|
These rates are accurate as of 9/18/2017.
To look for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.