Review of: EverBank
Reviewed by: Kevin Mercadante
Last modified: May 25, 2018
EverBank offers a variety of certificates of deposit (CDs) that are not found anywhere else. These include CDs tied to foreign currencies. The bank also offers precious metals as a separate program. Though it does business nationwide, EverBank has no branches outside Florida. Nonetheless, it offers some of the highest-yielding savings products available.
Until recently, EverBank was relatively unknown outside its home state of Florida. Established as a consumer bank in 1998 but with roots stretching back to the 1960s, EverBank has made a name for itself online. This is largely thanks to its high-interest–bearing savings products. But is EverBank a good choice for your money? We checked it out, and this is what we found.
What Is EverBank?
Based in Jacksonville, Florida, EverBank is a diversified financial company that offers banking and investing services, along with mortgages. It’s primarily an online bank, and it recorded assets of $27.8 billion, including $19.6 billion in deposits, as of the end of 2016.
In 2017, EverBank became a wholly owned subsidiary of TIAA, a leading provider of financial services with more than $938 billion in assets under management and more than 15,000 clients. The bank’s legal entity name is TIAA, FSB, but it continues to operate under the EverBank brand.
EverBank’s product line includes high-interest checking, money market accounts and certificates of deposit (CDs). It also participates in the Certificate of Deposit Account Registry Service (CDARS), which enables the bank to provide CDs in excess of the FDIC maximum insurance coverage of $250,000 per depositor, per bank.
|Access||Website, iOS App, Android App|
|Amount of Branches||11|
|Customer Service||Phone: 24/7; Email|
|Promotions||1.41% APY Money Market Account|
How EverBank Works
Except for a very small number of branches in the state of Florida, EverBank functions as a fully online bank. There are no banking branches in other states, nor does the bank offer ATMs. However, it does offer reimbursement for ATM fees charged by other banks. You may also see EverBank mortgage lending offices in other parts of the country. Note that these cannot handle banking transactions.
Online banking comes with bill pay and account alerts to keep you up to the minute on your accounts. You can arrange direct deposit through your payroll administrator, your pension manager or even the Social Security Administration.
The EverBank mobile app is available at Google Play for Android phones and tablets and the App Store for Apple’s iPhone and iPad. You can use the app to deposit checks, check balances, find a participating ATM, pay bills to current payees and make internal transfers. The mobile app is available with fast passcode or Touch ID sign-on.
You can also make mobile payments with Apple Pay, Android Pay and Samsung Pay.
EverBank has a three-step application process:
- Apply online
- Fund your account (see funding options below)
- Start banking
Funding Your Account(s)
Accounts can be funded by mobile deposit, paper check, wire transfer or online transfer from either another EverBank account or an account with another bank.
On all accounts except checking accounts, there is a limit of six transactions per month per account. Transactions include ACH transfers, debit card transactions, checks, preauthorized or automatic withdrawals, and transactions initiated by phone, internet or mobile device.
With EverBank, your assets are protected by the FDIC. Typically, FDIC insurance protects depositors for up to $250,000. However, an additional program allows depositors to invest excess funds in CDs in other network banks.
The Certificate of Deposit Account Registry Service (CDARS) allows depositors to invest with broader FDIC coverage. Through the program, EverBank distributes your funds into CDs at other banks within the network. The net result is that you can invest in a basket of CDs with millions of dollars and still enjoy FDIC coverage.
This is because FDIC coverage is limited to $250,000 per depositor, per bank. But since your funds will be distributed across several different banks, you can hold CDs worth much more.
The CDARS program requires a minimum of $10,000 to open an account, up to a maximum of $12.5 million. There are no account fees and no setup charges. You’ll also get a 15-day maturity alert.
EverBank offers two different checking account options:
Basic Checking. This account comes with no minimum account balance. It requires only $25 to open an account. It comes with mobile check deposits, free online bill pay and mobile payments. There is a $5 monthly account fee ($0 for New York residents), but this is waived with an average daily balance of $25 or more.
Yield Pledge Checking. This is EverBank’s interest-bearing checking account. It requires a minimum of $5,000 to open an account and a maximum of $250,000. EverBank is currently offering a one-year intro annual percentage rate (APY) of 1.21% on all balances. This compares favorably with Ally Bank, which offers an interest-bearing checking account that yields an APY of only 0.10% for balances below $15,000 and 0.60% for balances above.
The account comes with mobile check deposits, no monthly account fee, free bill pay, mobile payments and unlimited ATM fee reimbursements, as long as you maintain a minimum average daily balance of $5,000.
EverBank Savings Account
You can open an account with as little as $25 ($0 for Rhode Island residents). There is a monthly account fee of $5; however, it’s waived if you maintain an average daily balance of at least $25. The account comes with mobile check deposits and is IRA eligible.
Note that you are limited to no more than six transactions per month for this account.
|Available For||Taxable, IRA|
|Account Fees||$5; $0 (if you maintain an average daily balance of $25)|
EverBank Money Market Account
EverBank Yield Pledge Money Market
EverBank offers this account with a $5,000 minimum open balance, up to a maximum of $250,000. It comes with mobile check deposits and online bill pay. There is no monthly account fee, and you will be reimbursed for ATM fees at other banks as long as you keep your balance at or above $5,000. The account is also subject to a limit of six transactions per month and is IRA eligible.
|Available For||Taxable, IRA|
EverBank CD Rates
This CD can be opened with as little as $1,500 and a maximum of $250,000. It comes with terms between three months and five years. It has an automatic rollover provision and is IRA eligible.
|Term||Minimum Deposit||APY||More Info|
|3 months||$1,000||1.01%||Open An Account|
|6 months||$1,000||1.20%||Open An Account|
|9 months||$1,000||1.35%||Open An Account|
|1 years||$1,000||1.95%||Open An Account|
|18 months||$1,000||2.05%||Open An Account|
|2 years||$1,000||2.15%||Open An Account|
|30 months||$1,000||2.15%||Open An Account|
|3 years||$1,000||2.35%||Open An Account|
|4 years||$1,000||2.45%||Open An Account|
|5 years||$1,000||2.55%||Open An Account|
Yield Pledge CD
This CD requires a minimum of $5,000 to open and a maximum of $250,000. It has no monthly account fee and is eligible for automatic rollover. It's available for IRA accounts as well. Terms range from three months to five years.
|Term||Minimum Deposit||APY||More Info|
|3 months||$5,000||1.25%||Open An Account|
|6 months||$5,000||1.45%||Open An Account|
|9 months||$5,000||1.60%||Open An Account|
|1 years||$5,000||2.20%||Open An Account|
|18 months||$5,000||2.30%||Open An Account|
|2 years||$5,000||2.40%||Open An Account|
|30 months||$5,000||2.40%||Open An Account|
|3 years||$5,000||2.60%||Open An Account|
|4 years||$5,000||2.70%||Open An Account|
|5 years||$5,000||2.80%||Open An Account|
3.5-Year Bump Rate CD
This CD requires a minimum of $1,500 to open and up to a maximum of $250,000. It offers a one-time rate bump, which allows you to get the benefit of a higher rate after you’ve locked in the original rate. The CD has a term of 3.5 years, as the name implies, and is currently paying an APY of 2.30% on all balances.
The CD is IRA eligible and comes with an automatic rollover feature. The one limitation is that you may hold only one Bump Rate CD at a time.
|Term||Minimum Deposit||APY||More Info|
|42 months||$1,500||2.60%||Open An Account|
3-Year LIBOR Index CD
This is a variable-rate CD tied to the performance of the three-month London Interbank Offered Rate (LIBOR). That means your rate will adjust up and down based on changes in the LIBOR. Currently, the APY is at 2.28%.
The CD requires a minimum of $1,500 to open and has a three-year term. It is IRA eligible, comes with the automatic rollover feature and requires no monthly fee.
|Term||Minimum Deposit||APY||More Info|
|3 years||$1,500||2.28%||Open An Account|
Other EverBank Investment Accounts
EverBank also offers some other investment alternatives.
EverBank has two different investment groups: foreign currencies and precious metals. Foreign currencies are tied to certificates of deposit, which are themselves tied to the performance of the underlying investment. Precious metals can be purchased directly.
Foreign Currency CDs
EverBank CDs enable you to invest in 20 different foreign currencies. Interest is paid on the CDs based on the prevailing rates of the issuing country (but be aware that some currencies pay no interest). However, fluctuations in the value of the currency against the U.S. dollar could result in loss of principal. But should those currencies appreciate against the dollar, you’ll reap a gain. It’s a way of adding geographic diversification to your investment portfolio.
EverBank has foreign-currency experts on call to help you through this process. There is a markup of 1% or less when you convert US dollars to a foreign-currency CD, and again back into U.S. dollars. However, this markup is waived if the transaction is for at least $100,000. Foreign-currency CDs are covered by FDIC insurance against failure by the bank but not against market fluctuations.
Available Foreign Currency CDs include the following:
World Currency CDs: Minimum $10,000 to open, and terms between three months and 12 months. The CDs are IRA eligible. There is no monthly account fee.
World Currency CD Baskets: These are baskets of currencies based on a specific category or industry sector. For example, a commodity CD basket will include currencies from Australia, Canada and South Africa. The BRICS CD includes currencies from Brazil, Russia, India and South Africa. We can think of them as something like currency ETFs for specific categories.
Each of these CDs requires a minimum of $20,000 to open, with three- and six-month terms. They are eligible for IRA accounts. There is no monthly account fee.
WorldCurrency Access Deposit Account
This is constructed similar to a money market account, and it enables you to hold, transact and earn money in foreign currency. It requires a minimum of $2,500 open, or a $100 (or more) per month purchase plan. This account is also available for IRAs.
As part of the WorldCurrency Access Deposit program, EverBank also offers its Automatic Purchase Plan for foreign currencies. It’s a way to invest in foreign currencies through dollar cost averaging. You can start with as little as $100 per month, funded with automatic withdrawals from a companion cash management account. It allows you to invest in any one of 21 foreign currencies.
EverBank enables you to purchase gold, silver, platinum and palladium. Metals can be purchased either in coins or bars. You can purchase precious metals within 1% of the price available to EverBank. American Golden Eagles can be held in an IRA account.
Your precious metals account includes monthly account statements and also lets you accept home delivery of metals, for an extra fee ranging from 1% to as high as 1.75%. These accounts are not FDIC insured.
Two types of programs are available, Allocated and Unallocated.
Allocated means you’ll own an undivided interest in a specific quantity and type of metals stored at a third-party repository in bulk form, in EverBank’s name. This plan requires a minimum initial investment of $7,500.
There is an annual account fee for an Allocated account, as follows:
- Gold, 1.5% of the average daily account value of the metal in your account
- Silver, 2.5%
- Platinum, 1.5%
- Palladium, 2.0%
Unallocated is an account in which EverBank will hold an undivided pool interest in the metal on your behalf. The physical metal is also maintained by a third-party repository. There is no specific segregation or designation of particular types of metals. This plan requires a minimum initial investment of $5,000, or you can set up an Automatic Purchase Plan with a minimum of $100 per month.
Pros and Cons
- Great CD Selection — EverBank offers some of the most innovative and aggressive CD programs available.
- Competitive Rates — Rates for checking, savings and CDs are well above those offered by local banks.
- CDARS Program — CD investments can exceed the $250,000 FDIC insurance limit through EverBank’s participation in the CDARS program.
- Comprehensive Investments — EverBank is a bank, but it offers investments in foreign currencies and precious metals to go along with traditional bank-type investments.
- Mobile App — Use EverBank's mobile app for taking care of your account activity.
- 24/7 Phone Banking — You can call EverBank at any hour of the day.
- Few Branches — There are no branches except for a handful of locations in Florida.
- Small ATM Network — With only a few ATMs in network, you may have to depend on fee reimbursement.
- Risky Foreign Currency CDs — Foreign currency CDs carry a risk of loss of principal.
- No Custodial Accounts Offered — EverBank does not offer custodial accounts.
EverBank is definitely one of the most innovative online banks. Where else can you invest in high-yield CDs and also take positions in foreign currencies and precious metals? This actually makes EverBank something of a bank/brokerage hybrid.
The lack of local branches and ATMs is a definite limitation. However, this is hardly unusual for online banks. The main attraction of EverBank is high yields on savings products, and the lack of support facilities is understood by depositors.
The most curious aspect of EverBank’s product portfolio are the Foreign Currency CDs. The term “CD” implies a certain level of predictability and safety that actually isn’t part of these securities. They’re actually speculations held in CD form, with all of the usual risks associated with foreign currency investments.
Still, EverBank presents a good an unique opportunity to earn interest and profit from alternative investments, if you desire that for your personal portfolio.