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What's Wrong With Everbank?

Kaight   |     |   341 posts since 2011

I like to think of myself as being the sharpest tool in the shed.  But I'll share a secret with you, only for purpose of garnering sympathy on this thread:  I'm not!!

So I hope somebody will reach down and offer me the dopeslap I might well need at this point.  Like others, I've been caught up in the TIAA move to lower interest rates.  I found EverBank, though, and what appears to be a six month reprieve for up to $150,000.  IOW, I can continue to earn the 1.25% interest rate I like on liquid funds at EverBank for the next six months.  Guaranteed.  Superficially it seems to me a good deal.  Hence, my question:

What am I missing?

If there is one, what is the catch at EverBank?  I'm aware of the minimum balance requirements, which appear reasonable to me.  $100,000 of the EverBank money would be in their checking account.  Are there special requirements for that account, must the account be used a certain way or have a minimum number of transactions per month?  I could not locate any such requirements, but as I wrote earlier, I'm also not the sharpest tool out there.  I did read Ken's latest writeup on EverBank and found nothing disturbing.  But Ken has not posted on EverBank for a while.  There might be unwanted changes.

I've also searched here on the DepositAccounts.com website for a better deal than the one (which appears to be) offered by EverBank.  I found nothing close.  What am I missing????  Another six months at 1.25%,  guaranteed, seems almost too good to be true.  When something appears too good to be true it oftentimes is!! 

Ken Tumin
Ken Tumin   |     |   5,980 posts since 2009
I believe this is a legit deal. In the past I've seen reports from readers who said that it can take awhile to open the account and fund it. That was a bigger downside when the rate guarantee was only 3 months instead of 6 months. If anyone has recent experience, please share.

Here are two potentially gotcha fees at EverBank:

1) checking account:  If the average daily balance falls below $5,000, online bill pay usage will cost $8.95 per month. Online bill pay is optional.

2) money market account: $8.95 monthly fee if the average daily balance falls below $5,000

I'm not aware of other gotcha-type fees.

FYI, my last review of EverBank and this intro rate was last June.
Kaight   |     |   341 posts since 2011
Thank you, Ken, for your incredibly helpful, authoritative, post.  I guess EverBank is OK after all!

This is great news for TIAA refugees.  Why settle for 1% on your liquid funds when you can achieve 1.25% guaranteed for six months.  That appears, to me at least, the best liquid funds deal out there today.

Possible exception:

Those who opened the CD special at DCU a few weeks back might choose that route instead of EverBank.  It's an eight month add-on CD.  The funds will not quite be liquid . . but given the short term of the CD it's close.