bank rates

EverBank 5-Year CD Proves Hard To Resist

EverBank logoAbout two years ago, I closed my existing CD and money market accounts at EverBank.

At the time, the bank sent me an email saying “if you change your mind, we’re there for you.”

It was a nice sentiment, but, given its lackluster CD rates, EverBank hasn’t really been “there” for me since.

Until now.

I just couldn’t resist the latest offering by this Florida-headquartered bank – its 5-year, 2.06% APY Yield Pledge CD. This CD’s been perched atop our CD Rates Leaderboard since July 26.

I’ve opened two of them.

Yield Pledge CDs, when offered at competitive rates, meet my basic criteria for online CDs (with caveats noted).

First, there’s a relatively simple online application process. (Caveat: I find the website graphics a bit off-putting, but maybe that’s just me.)

Second, EverBank’s normal practice is to honor the rate posted at the time you apply online, provided your account is approved and your funding and signature card arrive within 30 days. (Caveat: The online application limits funding to checks or wires.)

Third, the CDs pay interest monthly, and that can be automatically credited to an EverBank checking or money market account. (Caveat: the bank doesn’t seem to pay interest by check or by ACH-ing it to an external account.)

Finally, the full deposit contract is available for review on the website, so you can find out what you’re getting before you begin applying.

The major downside to these CDs is the early withdrawal penalty – equal to one-fourth of the total interest that would have been earned on the principal balance if funds hadn’t been withdrawn early.

That’s 15 months’ worth of interest for a 5-year CD.

But, considering the contractual right which almost all banks have to change early-withdrawal terms, this doesn’t bother me. It’s more important to me that the deposit contract says a CD can be closed by my executor without penalty upon my death (which EverBank’s does).

Because I live primarily on income from CDs, I also opened a Yield Pledge Checking Account to capture my monthly CD interest.

This account requires a $1,500 minimum opening deposit but has no minimum maintenance balance or monthly service fee.

The checking account rate is tiered based on balances. Because this is my first EverBank checking account, I’m entitled to a six-month “bonus” rate of 1.10% APY on my $1,500.

I’m happy with my new EverBank accounts – and that this bank has started “being there” for me again.

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  1. Mike Cetera said:
    on August 16th at 07:56 am

    EverBank has cut its 5-year CD rate to 1.86% APY.