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EverBank is now known as TIAA Bank. Some of the information on this page may be outdated.
In the ever competitive world of online banking, Florida-based EverBank is somewhat of an anomaly. Established as a brick and mortar bank in 1998, EverBank transitioned into the online arena with great fanfare, but it retains some remnants of a traditional bank.
After looking at its rates and fees, one has to wonder whether it is competing with online banks or traditional banks.
Overall, EverBank has a complete offering of checking and savings accounts, but online banking aficionados may find EverBank offers somewhat limited. The rest of this EverBank review will cover everything you need to know about the company.
In 1998, EverBank was established in Jacksonville, Florida as First Alliance Bank. Its initial growth came through its physical branch operations throughout the state of Florida. Its next phase of growth came through its foray into online banking.
Although its physical banking operation remains limited to Florida, its online banking extends to customers in all 50 states.
With its aggressive introductory yield promotion and its Yield Pledge program, EverBank has become one of the fastest growing online banks in the country. Its online offering includes a checking account, a high yield savings account, and very competitive CDs.
How EverBank’s IBonus APY and Yield Pledge Program Works
EverBank employs an ingenious two-pronged marketing tactic to attract customers. On the front end, it offers an extremely attractive introductory APY on its accounts.
Currently the introductory APY for the first 12 months is 1.11 percent, which is indeed very attractive. But then the APY drops considerably.
If you’re fortunate enough to maintain a balance of $100,000 in your checking account, you money will currently earn 0.61 percent, which is still above the national average for checking accounts.
For accounts under $10,000 the current APY is 0.25 percent, which is not terrible.
The second hook is its Yield Pledge, which promises that you will earn a rate that will always be in the top 5 percent of competitive accounts offered by leading banks. The problem is, the competitive accounts they refer to are from the largest banks in the U.S., which don’t necessarily offer the highest yields.
When compared to other online banks, EverBank’s checking accounts don’t offer anything spectacular. In fact, aside from the ability to access your account online, it compares more favorably to a traditional bank.
Its basic checking account earns no interest and requires a $25 minimum deposit and a $25 average daily balance to waive the $5 monthly fee. While this is considered low by traditional bank standards, the top online banks don’t charge fees and have no minimum balance requirements.
The EverBank Yield Pledge Checking account, which pays a 1.11 percent introductory APY, requires a minimum initial deposit of $5,000 and there are no monthly fees.
Perhaps the biggest limiting factor for EverBank checking is its small ATM network. With less than a dozen physical ATMs available in Florida, online customers across the country can only deposit cash via snail-mail.
Customers can use EverBank’s remote deposit app on their smart phone for check deposits. Although EverBank will reimburse you for third-party ATM fees, you must maintain a minimum balance of $5,000 to receive the reimbursement.
EverBank no longer offers a Yield Pledge Savings account, but it does offer a basic savings and a Yield Pledge Money Market account.
After the introductory APY, depositors earn a competitive rate as promised by the Yield Pledge. The top post-introductory rate is 0.61 percent for balances of $100,000 or more.
There is no debit card or check writing available, but funds can be withdrawn or transferred via the online account or mobile app up to six times a year. Checks deposits can be made via the remote deposit app on your smart phone.
EverBank Certificates of Deposit
If there is one reason to use EverBank, it is their highly competitive CD rates. With terms ranging from 3 months to 5 years, there is a CD to fit every savings need. The Yield Pledge CD rates are competitive with most top tier banks, currently starting at 0.80 percent for a three-month CD, ranging up to 2.25 percent for a five-year CD. The minimum deposit is $5,000 for a Yield Pledge CD, but there is also a basic EverBank CD, with lower rates, no Yield Pledge and a minimum deposit of $1,500.
EverBank gets very high marks for its 24/7 customer service, which is something you can’t say about many online banks. That may be the remnant of the traditional bank that means the most. Here are some other things to like about EverBank:
- Fairly competitive rates – well above the national average
- Very competitive CD rates
- A complete offering of banking services
- Free ATM access (with a minimum balance of $5,000)
- Low or no fees (when waived)
- High introductory APY for first-time customers
After the introductory APY bonus, there is nothing spectacular about EverBank’s offerings.
- Low ongoing rates compared to top online banks
- High initial deposit to receive best rates
- High minimum balance required to receive ARM charge reimbursement
- Cash deposits must be made by mail for most customers
Considering all of the pros and cons, EverBank compares very favorable to other brick and mortar banks; but, in terms of its rates and offerings, it runs near the middle of the pack of online banks. If you are in the market for a great CD rate, EverBank does warrant consideration.
Author: Jeff Gitlen