Within 24 hours of each other, TIAA Direct and the newly acquired EverBank raised rates on all their CDs, adding between 6 and 15 bps. More importantly, TIAA Direct and EverBank’s rates now mirror each other.
Of all the CDs in the product line(s), the 18-months CD (1.66% APY), 24-months CD (1.81% APY), and 36-months CD (2.00% APY) are the most competitive. The minimum opening deposit is $1k, with no stated balance cap. Note: While three balance tiers ($1k, $100k, and $250k) are listed on TIAA’s website, the APYs are currently the same for all tiers.
|2.45%||$1k||-||TIAA Bank||3 Year CD|
|2.25%||$1k||-||TIAA Bank||2 Year CD|
|2.20%||$1k||-||TIAA Bank||1.5 Year CD|
As stated in TIAA Direct's CD FAQs, the Early Withdrawal Penalty (EWP) reads as follows:>
If your CD has a term of more than one year up to and including three years,
the penalty is equal to 180 days of interest on the amount of principal withdrawn.
Although TIAA Direct and EverBank CD rates are now on equal footing, EverBank’s EWPs have not yet changed.
1.5-year CD – 136 days of simple interest
2-year CD – 182 days of simple interest
3-year CD – 273 days of simple interest
EverBank's EWPs are equal to one-fourth of the total interest that would have been earned on the principal for each term length. TIAA Direct’s EWP works out to approximately one-third (larger than EverBank’s) of the 18-month, one-fourth (about equal) of the 24-month, and one-sixth (smaller) of the 36-month.
Headquartered in St. Louis, Missouri, TIAA Direct is the banking component and a brand of TIAA-CREF Trust Company, a Fortune 100 financial services company.
Opening a TIAA Direct CD must be done online. Funding a new CD can be done by wire transfer from an outside bank, by check, or transfer of funds from an existing TIAA Direct account.
As DA reader, thowelllll, pointed out in a Forum Post, TIAA Direct has completed its acquisition of EverBank. This acquisition will result in a rebrand, but as stated in a press release dated June 12, 2017,
The new, combined bank’s legal entity name is TIAA, FSB, but for the immediate
future, the Bank will continue to use the TIAA Direct and EverBank brands.
TIAA Direct has an overall health grade of "A+" at DepositAccounts.com, with a Texas ratio of 0.23% (excellent) based on March 31, 2017 data. In the past year, TIAA Direct has increased its total non-brokered deposits by $1.83 billion, an excellent annual growth rate of 120.21%. Please refer to our financial overview of TIAA Direct (FDIC Certificate # 34723) 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. Nearly 100 years later, TIAA Direct has acquired EverBank, significantly expanding TIAA Direct’s product line and services. A press release dated June 12, 2017 states,
TIAA, a leading financial services provider, announced today the successful completion of its acquisition of EverBank Financial Corp (NYSE: EVER) and its wholly owned subsidiary EverBank. The transaction was originally announced August 8, 2016.
The acquisition significantly expands TIAA’s existing retail banking and lending products and complements the company’s full suite of retirement, investment and advisory services. It also adds a broad range of business banking services that will allow TIAA to continue to meet the evolving needs of its more than 15,000 institutional clients.
How the CDs Compare
When compared to the 146 similar length-of-term CDs tracked by DepositAccounts.com that require a similar minimum deposit and are available nationwide, TIAA Direct's 18-Month CD APY currently shares the top spot with its EverBank counterpart and First Internet Bank’s 18-month CD.
When compared to the 192 similar length-of-term CDs tracked by DepositAccounts.com that require a similar minimum deposit and are available nationwide, TIAA Direct's 24-Months CD APY again shares the top spot with its EverBank counterpart and First Internet Bank’s 24-month CD.
When compared to the 192 similar length-of-term CDs tracked by DepositAccounts.com that require a similar minimum deposit and are available nationwide, TIAA Direct's 36-Months CD APY currently shares the top spot with its EverBank counterpart and Connexus Credit Union’s 36-month Certificate.
These rates are accurate as of 7/3/2017.