Bank of America sparked a bit of an outrage (ha!) when they announced a new $5 monthly fee for debit card users and Everbank counters with sixty bucks in bonus cash if you open a Yield Pledge Checking Account before November 30th. One bank announces a $5 monthly fee, another bank offers $5 a month as a cash incentive – can you see where this is going?
Brick and mortar banks can’t compete with online banks on the basics of banking – checking, savings, and certificates of deposits. The finances are what they are. Online banks have lower overhead and so they can pass along some of that in better rates. As of 10/24/2011 Bank of America has a 9 month no-penalty CD yielding 0.30% APY and a 12 month CD yielding 0.50% APY (rates). Everbank’s 12-month CD is 0.80% APY. It won’t wow you but it’s 60% higher.
So if you want to try a checking account that pays you $5 a month, rather than one that dings you $5, think about Everbank.