Coronavirus Stimulus Package Includes Limited FDIC Coverage Expansion
CD Rates Summary March 24, 2020
Federal Reserve, the Economy and CD Rate Forecast - March 24, 2020
Some Useful Features at EverBank's New Website
EverBank just launched its new website. A new website is typically not a news item that I report on, but there are a few new features of the website that may interest you.
Online Check Deposit
First, EverBank has a new page specifically for its new Online Check Deposit service. I first reviewed this service in July. You can scan your paper checks at home to make deposits. I was told in July that they have a limit of $10K per day. This service is free and available for both the checking and money market accounts. A separate form must be filled out and mailed or faxed.
Clearer Description of the 3-Month Intro Rate
Second, EverBank has long offered a special 3-month interest rate bonus for new accounts. The way EverBank has reported this promo has always been confusing. The new website has greatly improved how this bonus rate is displayed. In the new rate page, the first table shows the Yield Pledge Checking Account rates. The first column shows the 3-month bonus rate (2.25% APY as of 10/5/2010), the second column shows the first year APY and the last two columns show the ongoing rates and APYs. The rows of the table show the rate tiers. The confusing thing about this promo is the first year APY. If you move your mouse over that little orange symbol in the column title, you can read how EverBank describes this first year APY:
The 1st-yr APY (Annual Percentage Yield) defines the total annual yield earned by combining the current 3-month bonus rate and 9 months of the ongoing yield.
It's important to note that unlike the 3-month bonus rate, the first year APY isn't guaranteed since the ongoing rate is always subject to change. I believe EverBank is required by Federal regulation to list APY like this.
Expanding Your FDIC Coverage
Another useful feature at EverBank's new website is the page on FDIC insurance called "Understanding and expanding your FDIC insurance coverage". If you click on the tab "Expand your coverage", EverBank shows four scenarios of customers going above the $250K standard limit. Click on the plus sign on the left of the Scenario text and a very useful graphic and table are displayed. Scenario one shows a single man with four EverBank accounts. The first three total $250K and are under a single account ownership category. The fourth account has a $250K balance, and this is a POD account with one beneficiary. The POD feature puts this account under a revocable trust ownership category. This allows him to have all $500K insured. On the right of EverBank's page are links to the FDIC web pages which provide the official information on FDIC coverage including the one that describes the different ownership categories. It's important to note that it's your responsibility to ensure your accounts qualify for coverage over $250K. Banks often make mistakes. If your bank does make a mistake and it happens to fail without a buyer, your uninsured deposits could be lost.
Comparing CD Rates
One final feature is not too useful, but it's a little humorous. On its High Yield CD page it shows bar graphs of how its 1.10% 1-year CD yield compares to 1-year CD rates of other banks. As you might expect, it easily beats Bank of America and Wells Fargo. However, it doesn't beat ING Direct's 1.25% 1-year CD. I'm sure ING Direct appreciates the mention at EverBank. At least you know EverBank is honest. EverBank claims that their "CD will always be in the top 5% of competitive accounts offered by leading banks." I wish internet banks would only do these kind of comparisons with other internet banks. I find it hard to believe that a 1.10% APY is in the top 5% if you include just internet banks. Even in today's rate environment, a 1.10% 1-year CD seems especially low.
Past Reviews of EverBank Products
Occasionally EverBank does offer very competitive CD rates. I have more details about EverBank's Yield Pledge CDs and its Checking and Money Market accounts in this review.
For those looking for alternative investment opportunities, EverBank does offer some interesting ones especially in the area of foreign currencies. It's offering a new MarketSafe Currency Returns CD (see my review), and it has long offered CDs based on currencies of many other nations (see my review). It's important to note that the FDIC protection does not protect your foreign currency account from losses due to currency price fluctuations.
Print application, sign signature card and mail them with any other required forms
Nothing new, the check deposit feature from home was there since Jan. 2010.
Here, is how to calculate the correct interest your money earned in Everbank: as in my above example: $99,000 x 3 month x 2,25%. When, interest for 12 month : $99,000 x 2,25% / 100% = $2,227.59 for 12 month. Or, interest for 3 month = $2,227.50 /12 month x 3 month = $556.87. In this case after 3 month my total balance must be = $99,556.87 = ($99,000 initial deposit 556.87 ACTUAL interest earned in 3 month). But my balance as per Everbank was = $99,460.12. Or, my earned interest was less by $96.75= ($556.87 ACTUAL interest my money must earned - SCAM interest Everbank gave to me $460.12).
Therefore, Everbank's actual SCAM interest rate is 1.85% and not 2.25%, as they advertised. (1.85% = $469.12 x 2.25% / $556.87.) Two years ago naively I sought that Everbank stopped this scam. I was wrong --- last year I opened again the money market account for 2.25% for 3 month --- and voila! the same scam was repeated. Again, I sent a fax to the same manager -- proving him that I am not a fool. To calculate interest required only arithmetic's, or 4 grade education. Again, he mailed me a check --- the difference. Everbank is not alone, 2 other banks, in my case, are doing the same scams. My suggestions: as soon as you put your money into CDs or money market --- calculate what is going to be the interest and total balance upon maturity. And when the maturity date come in --- compare it. And if it is a scam --- ask to return back your earned money. Hopping the above is helpful to you. Banks are scamming naive and honest population, and the problem is --- millions of customers --- taking banks scam "calculations" for granted --- that is how banks robbers (they called themselves "executives ") put into their pockets millions of $ in annual salaries and millions of dollars in annual bonuses. And naive middle class --- allow to be robbed by scam artists.
Concern citizen.