bank rates

EverBank Now Shares Top 4-Year CD Rate

EverBank has joined the slim ranks of national banks challenging E-Loan’s recent dominance in CD rates.

Its new 48-month return of 2.00% APY creates a three-way tie for the best nationally available deal among the banks on our CD Rates Leaderboard.

EverBank now shares the top 4-year lead with E-Loan and Salem Five Bank.

Operating a robust online portal and 10 branches throughout Florida, EverBank has a history of updating its rate sheet almost every Friday, and in the past has frequently moved in and out of the lead in several terms.

But in July, E-Loan raised its rates dramatically, taking command of the national lead in 1-, 2-, 3-, 4- and 5-year yields, and in some cases by almost two-tenths of a percentage point.

Since then, few banks have been able to beat or even match the new bar set by E-Loan.

CIT Bank and Salem Five matched E-Loan’s 1- and 4-year leads, respectively, in August and September.

But it wasn’t until two weeks ago that a bank finally unseated E-Loan from one of its perches, with Colorado Federal Savings Bank raising the 1-year lead to 1.35% APY.

Although EverBank’s new rate only matches E-Loan and Salem Five’s 4-year yield, it requires a minimum deposit of just $1,500, compared with $10,000 at both of the other banks.

They also differ in their early-withdrawal penalties, which is a critical consideration for long-term certificates of deposit given the expectation that the Federal Reserve will shortly raise rates and continue doing so for the next few years.

Unfortunately, none of these three leaders offer particularly favorable early-withdrawal penalties.

For 4-year CDs, both EverBank and E-Loan assess a penalty equal to 12 months’ interest.

Salem Five’s is even stiffer, at 4% of the principal deposited. Given a 2% annualized yield, this equates to roughly two years’ interest.

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