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NetBank Being Acquired by EverBank


Update 9/28/07: NetBank closed by the FDIC. See post for more details.

EverBank announced today that it has reached an agreement with NetBank to acquire NetBank's direct banking division and a other couple other divisions. EverBank expects to complete the acquisition by early summer with full integration expected by the third quarter of this year. From this Forbes article, it appears NetBank's poor financial situation contributed to this deal.

I've long reported about NetBank's weak Bankrate.com safe and sound ratings. As this example shows, many weak banks don't go under and are instead sold to a stronger bank. So the FDIC insurance isn't even needed.

From EverBank's website, they're informing NetBank customers that "We hope to close the transaction in late June or early July and then officially welcome you to the EverBank family. We'll then work to complete account integration during the third quarter."

This will probably soon put to an end to all of those NetBank sign-up bonuses (see post). NetBank's money market and checking accounts didn't have high rates, but they did have some decent sign-up bonuses. Their CDs, however, did have some competitive rates along with bonuses, especially for this year (see post).

One concern that NetBank customers may have is their future eligibility for EverBank's 6% promotion on its FreeNet Checking since this promotion is only for new customers.

Thanks to the readers who emailed me this news.

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Mike   |     |   Comment #1
Yeah, a signup bonus that I still haven't gotten despite 5 months of phone calls ending nowhere and emails acknowledging that I "should have gotten" the bonus already. GRRRRRRRRR
Anonymous   |     |   Comment #2
Netbank's rates haven't been the best as of late, but I stuck around for the ATM access. In addition to their own ATMs (which weren't that convenient for me), you could make free withdrawals at Starsf and SUM ATMs. Even more importantly for me, you could make deposits at most Star ATMs that take deposits. I never felt comfortable mailing endorsed checks, so I like the ATM deposit options.

I see a limited ATM surcharge refund on the Everbank page, which is better than nothing. I don't see any options for depositing checks other than mailing them in.
Anonymous   |     |   Comment #3
if they dont have postage paid deposit envelopes, I am closing my a/c with netbank/Everbank. This was the only perk that I kept my netbank a/c thus far. I recently closed my MM a/c with netbank.
Anonymous   |     |   Comment #4
EverBank does provide free postage-paid envelopes and reimburses ATM fess up to $6 per month. I love EverBank!
Anonymous   |     |   Comment #5
I have a Netbank account but EverBank requires $1500 minimum a month to use free online Billpay...Netbank does not. So, I'm switching banks to SalemFiveDirect.
Anonymous   |     |   Comment #6
CDs: 12 Month CD - 5.40%; 18 Month CD - 5.45%; 24 Month CD - 5.40%; 36 Month CD - 5.38%; 48 Month CD - 5.35%; 60 Month CD - 5.30%.

Plus bonuses - see affinity promotion with buy.com

Anonymous   |     |   Comment #7
What is the status of this acquisition? It is now the end of July, and I as a NetBank customer have received no information regarding the future of my accounts.
Anonymous   |     |   Comment #8
you think you have it bad with the Netbank failure, try living overseas and having to deal with opening a new account at a new bank. and now ING cancels all overdraft protection, and tells me they will no longer accept online payments for the previous overdraft. and now the tell me they are cancelling my ATM card (the only access I have to my funds overseas), and the icing on the cake is that all bill payments will cease as of Dec. 7th.
ING Direct is non-service. they do NOT care about the Netbank customers.
so I did some research, and found SalemFive Bank, founded in 1867, and they pay a whopping 4.7% on checking accounts, with no minimium balance required. so sign me up SalemFive Bank.