It’s been a long time since we’ve seen an online bank increase their interest rates, but… I recently received an e-mail from EverBank saying that they’ve bumped up the rate on their “Yield Pledge” Money Market Account.
The calculation is a bit convoluted, but they’re offering an introductory rate of 3.01% APR (3.06% APY) on up to $50k in deposits for the first three months. After that, the rate falls back to 1.83% APR (1.85% APY; this is up from a rate of 1.63% APR). The end result is an average APY of 2.15% over the first year on up to $50k in deposits.
Like I said, sorta convoluted. Nonetheless, if you’re looking to open an online savings account, EverBank is definitely worth checking out. Just be aware that they require a $1500 minimum deposit to open, and that accounts with a balance below $5000 are subject to a monthly fee.
For a more complete rundown, check out my list of interest rates at online banks.
WOW!! A bank has decided to increase rates? What were their rates before the increase?
Like Diane said, these terms seem pretty outrageous, but I guess if you’ve got money to burn and are willing to meet the minimum requirements this may be good.
Oh yes, and I forgot – we have an account with B of A as well – BOTH are ‘on-line’ accounts.
B of A ties our mortgage balance we have with them, into our checking account, so we never have to pay a fee. Their minimum balance requirement to avoid service fees if you don’t have a mortgage with them is $1,000 and they pay a tiny % of interest on the checking.
We can bank on line; get our statements on line – monitor our credit cards that we have both with B of A and our credit union – it’s a breeze and still a far cry better than what I’m reading on this particular bank you mention………
Normally I just read and enjoy your posts, but I stopped cold on this article.
My goodness, why would anyone go to a bank with these terms??!!!??
We use our credit union; our minimum balance is $500; we pay NO service fees if we keep it at $500 or above.
We receive 2.01% on ordinary savings; we earn 5.75% on our 2-year CD’s, and 1.03% on our CHECKING account.
And, as a last note, we opened the account with $200 – not a minimum of $1500……..
I think this is a bank to ignore completely!