Opening an Everbank Yield Pledge Money Market Account

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EverBankAfter closing my Emigrant Direct account last week, I figured I’d add to my paperwork and open up a new bank account! This time I turned to a bank I’ve talked about in the past but never dealt with personally – EverBank. They have all the characteristics I look for in an online bank – FDIC insured, competitive interest rate, and informative website. They’ve been been in business for many years, as a mortgage lender, before they started taking deposits in 1998 (when they were FDIC insured). Since then, they’ve won a ton of awards such as Money Magazine “Best of the Breed” in 2007 and Kiplinger’s “Best Checking Account” in 2006. Most importantly, they don’t appear to be too affected by the credit crisis… all good things, so I opened an account today.

Why EverBank?

I chose EverBank for three reasons:

  • Safety: In researching my high interest savings account profiles post, I discovered they were one of the few banks rated 4 stars by Bankrate’s Safe & Sound report (FNBO Direct and ING Direct were also four stars). All these banks are FDIC insured up to $250,000 and I’m not worried about a bank failure, but all things being equal, I’d prefer not to have the headache in the first place.
  • Yield Pledge Money Market Account interest rates: The account gives you 3.51% for the first three months, then 2.73% for the balance of the year up to $50,000 (balance above that get 2.43%). The promotional rate is on par with the current interest rate leader, 3.20% Dollar Savings Direct, and crushes it in terms of safety (DSD has only 1 star from Bankrate)
  • WorldCurrency CDs: By opening an account with EverBank, I get quick access to their international CDs. They offer certificates of deposit in international currencies, such as the British pound, the Euro, the Indian rupee, and the Swiss franc. I’m not planning on investing in international CDs, nor do I recommend them, but it’s good to have the option (and an opportunity to learn more about them).

Money Market Accounts

The one big difference between the EverBank account and some of the other online banks is that it’s a money market account, rather than a savings account. With EverBank’s Yield Pledge MMA, you can have checkwriting privileges, three checks a month, which adds some flexibility. Everbank is still among the best when it comes to the best money market account rates but her certificate of deposit rates are a little weak.

WorldCurrency CDs

EverBank currently offers eighteen different types of international currency CDs: Australian dollar, Brazilian real, British pound, Danish krone, Euro, Hong Kong dollar, Icelandic krona, Indian rupee, Japanese yet, Mexican peso, New Zealand dollar, Norwegian krone, Singapore dollar, South African rand, Swedish krona, and the Swiss franc. Their terms range from 3-months to 12-months, though only nine currencies are available for 12 months and two of them have returns of 0.00%). Again, I’m not planning on investing in international CDs (the currency risk is far too great) nor do I advocate them, but it’s nice to have the option.

Account Opening Process

The account opening process was pretty quick, took about five minutes to get through the screen, but it ends with you printing out an application and signature card that you have to mail in. A signature card isn’t unusual, but usually banks offer a fax option. It will have to be a few days before the account is officially opened and funded.

Good bye Emigrant, hello Everbank!

{ 18 comments, please add your thoughts now! }

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18 Responses to “Opening an Everbank Yield Pledge Money Market Account”

  1. tom says:

    FYI… Dollar Savings Direct dropped it’s APY to 3.2%

    • Jim says:

      Yeah, they’ve cut it twice in three weeks! It’s a lot of rate falling going on… Thanks for catching my error Tom.

  2. Brian says:

    Explain to me why everything is dropping? i mean i understand what is going on with the economy but what can we do to make it better? I’ve been researching in investing in private banks. Would that be a good idea? what can I do to make money during this economic crisis?

    • nickel says:

      Rates are dropping because the Federal Reserve says so. Whenever they cut short term rates, savings rates follow shortly thereafter.

    • Jim says:

      Everything is dropping because interest rates are at all time lows, so banks don’t feel compelled to pay out high rates. The only thing I can recommend, if you want safe investments, is to go with CDs.

      I’m not sure what you mean by private banks, could you elaborate?

  3. Ken says:

    Interesting that you had to print out the application and signature card and mail them in. This was the old way, but according to Jonathon at MyMoneyBlog, the application process was completely online with no paperwork as of November 2008. Wonder why they went back to the old way.

    • Jim says:

      Maybe because of the account I opened? I did the money market account and I had to print out a form to sign and mail in.

  4. thomas says:

    Wow, that’s actually a pretty good deal on savings. Broken record here, but it’s nothing like the 6%+ rates not too long ago. Man that was some sweet money making.

  5. AverageJoe says:

    The international currency CDs sound really interesting, I’ve never seen that offered in a retail setting. Depending on the rates and minimum deposit amounts, could be fun and educational to try them…but I need to check it out first. Thanks for the review Jim!

  6. Rich says:

    I’m about to move money out of CountryWide (now down to a pathetic 1.65 APY…thanks to BOA acquiring them) and was going to go with Dollar Savings Direct.

    Before I make this decision, I’m wondering if you could elaborate a little more on “safety” concerns/ratings.

    Since all are FDIC insured, what are the primary concerns? Are they that the bank will go belly up and then we’ll have to go through the (not very enjoyable) process/paperwork to get our deposits back?

    • Jim says:

      The worry is that they’ll go belly up but as long as you have under the FDIC limit ($250k now), you shouldn’t have to do anything. It’s usually only for deposits above the FDIC limit.

  7. Rich says:

    Also, is the DSD 3.2% rate promotional or guaranteed for a certain period of time or something else?

    • Jim says:

      It’s not promotional and it’s not guaranteed, it’s just the going rate. The Everbank rate is a promotional rate and is guaranteed for three months.

  8. Steve says:

    I hope you can do a follow up review in three months talking about your experiences with Everbank.

  9. James says:

    Something else to think about is a local credit union. I just started up a “max” checking account at lake michigan credit union. It is 5% yield if you have direct deposit, login 4 times a month online, and use the debit card associated with the account 10 times a month. The cool thing is this. As most credit unions, they only let you in for certain reasons. I signed up even though I didn’t live, work, go to school, or worship in those counties. They called me and informed me that I did not qualify for an account based on my living conditions but I could qualify by making a charitable donation this specific charity of there choice. It was $5 minimum. So now I have a checking account, with checks, a debit card, and 5% APY up to $15,000. Local research can pay off big time!!

  10. Steve says:

    I as looking over the info at EverBank. If your balance falls below $1500 there’s a $4.95 monthly fee. So this means you’ll have to either keep $1500 in that account if you transfer funds away, or close your account. Sounds lame.

    “Minimum opening deposit of $1,500 is required. In any month that your average monthly balance falls below $1,500, a $4.95 monthly fee applies”

    On a side note, if you have any experiences with business banking I’d love to read about it.

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