EverBank has become very aggressive with their CD rates again - either because they are trying to be on the cutting edge of increasing yields or because they are eager to attract new capital ahead of TIAA’s overpriced acquisition.

EverBank’s 5-year CD rate is, in fact, already at 2.28% and that has caught our attention because we recently recommended that depositors categorically avoid CD laddering strategies – staying with only short maturities - until they see 5-year rates above 2.30%.

We recommend that depositors continue to exercise extreme caution here, especially with EverBank. EverBank’s early withdrawal fee, as stated in the bank’s terms and conditions, is one quarter the total amount of interest that would have been earned had the CD been held to maturity. A three-month early withdrawal fee on a one-year CD is quite reasonable; this is consistent with the fee charged by Sallie Mae or BAC Florida, two banks which aggressively compete in the 1-year term space. Giving up 15 months of interest to terminate a five-year CD early, however, is not market. It is excessive, exculpatory. Especially with longer term CDs, we also suggest caution as banks do retain the right to deny an early redemption request (and, in this regard, TIAA’s awful customer service history scares us greatly as well).

A good starting point for investing in CDs is by reading BestCashCow’s e-Book on 65 questions to ask before choosing a CD. Depositors then need to carefully read the bank’s terms and conditions before they invest. Some banks – like Everbank – may include wording that you will need to decipher.

With the case of EverBank, it is a lot like jumping into the pool at EverBank Field. The pictures of the pool look wonderful so long as they are take with four models when the stadium is empty. Once you have bought your ticket to the game, though, you will find it full of drunk guys and the water might not exactly be so healthy for you either.

Explore all CD rates here.

Following the Fed’s rate increase yesterday – only the second in over a decade – this is a very bad time to be buying long term CDs, even if it is in conjunction with a strategy of buying short term ones.

BestCashCow is a website that provides people with CD and savings rates details (as well as mortgage rate and credit card information). Our position is that people should have a substantial amount of their retirement assets in safe places. With the stock market pushing 20,000, a safe place is not the stock market. And, with interest rates at historic lows at the end of what has been an unprecedented decade, municipal bonds and other long-term fixed income assets are not a safe place either.

One of our longstanding competitors – and in fact a competitor who we have always held in high esteem - published a commentary explaining that following the Fed’s increase in the Fed Funds rate to 50 bps, depositors continue to be well advised to seek out a CD laddering strategy. We at BestCashCow disagree.

Other than the fact that Fed Chair Yellin’s commentary and her disposition remain dovish, every reasonable indicator is suggesting that interests rates will be dramatically higher in 1 year (the Fed itself is guiding towards a Fed funds rate of 1.25% in 12 months). To boot, Trump and Mnuchin are going to remove regulation on small and medium sized banks, creating more competition for your money in the very near future.

We believe that the laddering strategy is tried and true and recommend it generally in our e-Book on CDs. However, this is an unusual time where rates are low and certain to rise, as soon as early in 2017. Therefore, even with short early withdrawal fees (which our competitor points out that banks may not honor), any CD over 1 year is simply not attractive against the backdrop of an imminent reversal in our decades-long period of unreasonably low interest rates.

Cash rates still may not be sexy, but you are not getting enough of a time premium or a risk premium at this moment to be laddering beyond 1 year.

Hint: The best 5-year CD rates were over 2.30% less than 18 months ago. Don’t even consider 3, 4, or 5 year CDs until you see 5-year CD rates at or above that level again.

See the best savings rates here and the best 1-year CD rates here.

In the aftermath of the surprise Brexit vote, global equities fell off a cliff for two days, followed by a sharp and pronounced moved to new highs due to global central bank stimulus. Still the UK faces a difficult economic future resulting from a long period of uncertainty, followed by a transitional period to a more restrictive environment where goods and capital will not be able to move as freely with its largest trading partners. This will certainly lead to a recession (or depression) there, and consequently lower demand from 60 million English-speaking consumers of products and services produced by US corporations. Europe, too, faces a hit of ½ of 1% to its GDP over the next three years, according to Mario Draghi. To boot, whatever demand continues to come from the UK and Europe is already at a significantly lower price point as a result of a currency exchange rates that have moved sharply against the dollar. US equity markets are priced for perfection and for strong growth, and those valuations may not be sustainable.

The same central bank action that caused a snap-back rally in US equities caused a rush to US Treasuries (where the 10 and 30 year bonds have hit all time new lows in yield) and gold (which is well off its high of several years ago, but up dramatically). It is very possible that US rates will continue to decline over the short and even intermediate term. (I now believe, like many, that the Fed cannot continue with its objective of normalizing US interest rates, as such action would cause still more strength in the dollar versus the Euro and British pound.) Savings rates could actually decline.

Although not sexy and not where you want to have all – or even most – of your capital, 1-year certificates of deposit offer protection here. BestCashCow’s list of CDs show that at least five online banks still offer 1-year CD rates at or above 1.25%. Local bank and credit union rates may be higher (you can check those rates here). While there may be an opportunity cost to locking up your money, the worst-case scenario of investing in a 1-year CD is that you get it back in a year.