EverBank tends to change its CD rates at the end of the week. This week the CD rates didn't change, but its money market rate did. the 1-year guaranteed introductory rate for new Yield Pledge Money Market accounts has been raised to 1.31% APY. In addition, the ongoing rate was increased to 0.86% APY.
|1.31*%||-||$250k||EverBank||Yield Pledge Money Market - First Time Client (1st Yr)|
|OTHER TIERS: 0.86% → $250k - $10mm|
|0.86%||-||$10m||EverBank||Yield Pledge Money Market - Ongoing Client|
When liquid account rates starting rising in June, I kept expecting to be writing a blog post about the Yield Pledge Money Market, but the rate remained fairly constant. There was a 10 bps increase in early July, but the resulting 1.21% APY wasn’t that competitive. To give you an idea of the recent movement in MMAs and savings account rates, I’ve written more than 40 blog posts about liquid accounts in the past three months.
The guaranteed introductory rate is only available to first-time holders of the Yield Pledge Money Market account, and according to the fine print, requires new money.
Accounts opened and initially funded with money transferred from
another EverBank account are not eligible for the 1-year introductory APY.
The disclosure for the one-year guarantee reads,
The 1-year introductory APY for balances (i) up to $250,000 is 1.31%, and
(ii) from $250,000.01 to $10,000,000 is best expressed as a range: 1.31% to 0.87%.
With the one-year rate guarantee, the Yield Pledge Money Market has become a de facto 1-year CD earning 1.31% APY, with no early withdrawal penalty. Currently, the highest APY for nationally available 1-Year CDs for a $10k deposit is 1.60%, offered by Pacific National Bank, TIAA Direct, and coincidentally, EverBank.
EverBank still maintains its promise that,
The yield on your Yield Pledge Checking and/or Money Market Account will stay in the Top 5% of Competitive Accounts based on Bankrate Monitor National Index survey data from the last week of each month.
I assume this promise applies to the ongoing rate of the Money Market Account (which is now 0.86%). That survey must include many brick-and-mortar banks. If it just included internet banks, the top 5% would be much higher. If you look at the nationally available accounts in DA's money market table, they would need a 1.20% yield to be in the top 5%.
Yield Pledge Checking
In the recent past, the Yield Pledge Checking’s guaranteed APY mirrored that of the Yield Pledge Money Market account. This is the first time in more than two years that the Yield Pledge Checking has a different APY.
|1.21*%||-||$250k||EverBank||Yield Pledge Checking - First Time Client (1st Yr)|
|OTHER TIERS: 0.71% → $250k - $10mm|
While details about the Yield Pledge Checkingaccount can be found on EverBank's website, a few of the features are as follows:
- $5,000 minimum opening deposit
- No monthly fee
- Free online bill pay services
- Unlimited ATM fee reimbursement with minimum balance of $5,000
- Mobile check deposits
Thanks to DA reader, leemd, for his Forum post about EverBank’s latest rate increase.
TIAA completed its acquisition of EverBank in June. According to a press release, the acquisition will result in a rebrand, “TIAA, FSB, but for the immediate future, the Bank will continue to use the TIAA Direct and EverBank brands.”
Currently headquartered in Jacksonville, Florida, EverBank is an internet bank that has some brick-and-mortar branches that were part of the acquisition of Bank of Florida in 2010. Those ten Financial Centers are located throughout the state in Boca Raton, Clearwater, Coral Gables, Fort Lauderdale, Fort Myers, Jacksonville (4), and Naples.
The Yield Pledge Money Market account can be opened using EverBank’s online application, or at any of the above mentioned locations.
TIAA, FSB/EverBank has an overall health rating of "A" at EpBooks.us, with a Texas Ratio of 8.06% (excellent), as of March 31, 2017 data. In the past year, TIAA, FSB/EverBank has increased its total non-brokered deposits by $1.01 billion, an excellent annual growth rate of 6.87%. Please refer to our financial overview of TIAA, FSB/EverBank (FDIC Certificate # 34775) for more details.
Publicly traded on the NYSE, EverBank was founded as the First Alliance Bank in 1998, and shortly afterwards acquired the Marine National Bank of Jacksonville. Within a year, EverBank acquired the world currency division from St. Louis’ Mercantile Bank. Currently, EverBank is one of the largest internet banks in the U.S., with assets in excess of $27 billion and more than 500,000 customer accounts.
How the Yield Pledge Money Market Compares
When compared to the 172 Money Market Accounts tracked by EpBooks.us that are available nationwide, EverBank’s Yield Pledge Money Market 1st Year APY currently ranks second.
|Interest Rate||Account Name||Credit Union/Bank|
|1.50% APY||Mega Money Market ($35k max)||All America Bank|
|1.31% APY||Yield Pledge Money Market-First Time Client ($250k max)||EverBank|
|1.30% APY||Money Market (no max)||SallieMae Bank|
The above rates are accurate as of 9/2/2017.