EverBank’s 5-Year CD Rate is Like the Pool at EverBank Field

EverBank’s 5-Year CD Rate is Like the Pool at EverBank Field

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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.

Ari Socolow
Ari Socolow: Ari Socolow is the Chief Economist and Editor-in-Chief at BestCashCow. He is particularly interested in issues relating to bank transparency and the climate crisis. Since co-founding BestCashCow in 2005, Ari has been frequently cited in the media as an expert on local and national savings accounts, CD products, mortgage and loan products and credit card rewards products.

Today's Highest Online CD Rates

Bank Product Term Interest Rate (APY)
Charles Schwab Bank, SSB 1-Year 5.40% APY with $1,000 minimum
Finworth, a division of InsBank 1-Year 5.38% APY with $50,000 minimum
TotalDirect, a division of City National Bank of Florida 1-Year 5.35% APY with $25,000 minimum
Dollar Savings Direct, a division of Emigrant Bank 3-Year 5.00% APY with $1,000 minimum
M.Y. Safra Bank 3-Year 4.70% APY with $500 minimum
First Internet Bank of Indiana 3-Year 4.66% APY with $1,000 minimum
First Internet Bank of Indiana 5-Year 4.55% APY with $1,000 minimum
BMO Alto, a division of Bank of Montreal Harris 5-Year 4.50% APY with no minimum
Department of Commerce 5-Year 4.34% APY with $500 minimum

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  • William Twigg

    January 16, 2017

    Years ago I bought a CD from IndyMac Bank with a great rate and then it was acquired by Steven Mnuchin, John Paulson, Michael dell, Chris Flowers and George Soros who created One West and the first thing that they did was void all of the CDs. Isn't that what TIAA-CREF is going to do here? Isn't that the risk?

  • Ari Socolow

    January 16, 2017

    @William Twigg No, that isn't the risk. IndyMac was seized by the FDIC in 2008 and then sold to OneWest. An FDIC seizure is a bankruptcy proceeding where contracts can be terminated / liabilities can be recast. TIAA-CREF is acquiring a solvent bank here, and won't be voiding contracts.

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