EverBank Review: Online Bank For High Yield Investment Accounts

EverBank has some great savings products. Check out their unique offerings in the savings account space.

If you’re on the lookout for innovative bank products (like I am) then you may want to turn your attention to EverBank. I’ve been keeping up with them because they are one of the few resources I’ve found that offered interesting financial products that I couldn’t find anywhere else. Plus, they handily address a lot of my personal investment requirements.

Here’s the quick scoop. While EverBank provides many financial services from mortgage banking to investing, they’re actually quite well known for their online banking and consumer products, from high yield checking and high interest savings accounts to money market accounts and CDs that are denominated in both U.S. and foreign currencies. Considered as one of the largest online banks in the U.S., EverBank has received the Forbes “Best of The Web” recognition from 2000 to 2005.

Here’s a quick summary of their product offerings, which are mostly safe savings accounts with a few intriguing exceptions:

For a no monthly fee high interest checking account, you can take a look at EverBank’s Yield Pledge Checking Account. This account was formerly known as the FreeNet Checking Account but has since been renamed. They do require an opening minimum balance of $1,500, but if you can afford it, you may want to check out this account for the following features:

Latest Promo: Receive $60 for opening a checking account. Offer expires November 30, 2011.The yield promises to be in the “top 5% of competitive accounts” across leading banks (as per their “yield pledge”. Currently you’ll make 8X more than the national average with this account.There’s no minimum balance required to receive interest.There are NO monthly charges and NO debit card fees.You will be reimbursed for all ATM fees, regardless of which ATM you decide to use.They are of course, covered by the FDIC.Online bill pay is free for accounts that contain at least $5K as an average daily balance. Also, online and mobile banking is free.They’ll pay you $50 if you decide to take your business elsewhere ($50 satisfaction guarantee!). Numerous awards including Money Magazine’s “Best of Breed” and Kiplinger’s “Best Checking Account”.Open an EverBank Yield Pledge Checking Account and receive $60.

The EverBank Yield Pledge CD is described as a high yielding certificate of deposit (relatively speaking) that is covered by EverBank’s “yield pledge”, which simply means that the bank ensures that their yields will always be at the top 5% of competitive accounts. Their rates range from 0.35% APY for a 3 month CD all the way to 1.90% APY for a 5 year CD. Accounts are FDIC insured. The only downside is that they require a minimum opening balance of $1,500. Some other great features? You can opt for automatic rollovers or ask to be notified by a bank representative when your CD is about to mature (notifications occur 20 days prior to maturity).

Here’s where to sign up for an EverBank Yield Pledge CD.

Another FDIC insured product, the EverBank Yield Pledge Money Market Account has a .76% APY. Again, they require an opening balance of at least $1,500. Also, it’s only free if you maintain at least $5,000 in your account, otherwise it’ll cost you $8.95 a month to keep your money here. Given the relatively lower savings rates at this time, you may get more mileage from the Yield Pledge Checking account, which has some pretty attractive features that are focused on lowering costs instead.

Here’s where to find out more about the EverBank Yield Pledge Money Market Account.
Note: Following are EverBank’s unique foreign CDs. However, note that they are not available at this time and are only offered on occasion.

Okay now we come to the fun part! This is what I particularly appreciate about EverBank — they have a series of “WorldCurrency” products which I look upon as great diversifiers for any investment portfolio. Here’s what I mean: for foreign exposure, most of us own foreign equity mutual funds. But if you’re nervous about the volatility that stocks and currency exchange rates bring, then here’s the perfect product for you: the EverBank MarketSafe CD. What’s interesting is that this offering only comes around once in a while based on current market conditions, so you’ll need to apply for an account prior to a particular deadline (the last application deadline was on October 8, 2009) in order to participate in it.

The MarketSafe BRIC CD has a term of 3 years and gives you exposure to the 4 BRIC currencies: the Brazilian real, Russian ruble, Indian rupee and Chinese renminbi. Basically, you’ll make money if the BRIC currencies gain against the dollar upon the CD’s maturity at the end of its 3 year term. If your investment does not increase or goes down in value, you won’t be losing any money. In this case, you’ll get 100% of your principal back after the 3 years is up. So there’s no downside (except the potential loss of interest over 3 years)! It requires a reasonable $1,500 minimum deposit.

It’s something I’m seriously contemplating on as a great way to diversify my international holdings. You’ll need to check up on it now if you want to be part of their next offering.

If you’re unable to invest in the BRIC CD (because it’s unavailable), then there are still other ways to invest globally with EverBank. They have a ton of other foreign currency based CDs but these carry with them the currency risk inherent in international investments. So it’s safe to say that they’re only FDIC insured for bank insolvency, not for fluctuations in the value of your investment. If you’re interested in exploring diversification through foreign currencies, then you can check out the following products:

For more on foreign currency investments and research, check out this link!

All these products are available through both regular and IRA accounts. There are a whole slew of investment and savings options that are available with EverBank, many of which are not readily available through other banks. If you are looking for no-risk accounts, you can check out their Yield Pledge products. On the other hand, if you’re more interested in diversified foreign CDs or precious metals investments (which aren’t considered staples in most banks), then do take a look at EverBank’s commodity baskets (e.g. WorldCurrency CD baskets and Metals Select Gold and Silver accounts). You can also open an EverTrade brokerage account to trade traditional equity and bond securities.

Open an IRA account with EverBank here.
Created September 3, 2009. Updated October 27, 2011. Copyright © 2011 The Digerati Life. All Rights Reserved.

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Set Up Beneficiaries for All Your Accounts

While anyone moves towards financial independence, there is a time to think about what would happen to one’s financial accounts if one were to most unfortunately pass away. It’s a morbid thought, no doubt, and it’s easily avoidable in a world where talking about death is difficult. I don’t like to contemplate my own mortality, but realism must sink in as one grows older, particularly when and if life as a single person gives way to the start of a family.

Planning for the inevitable future can involve wills and trusts, but there is a rather simple step that could help potential heirs avoid some problems. Probate could prove to be expensive and problematic, and investors or savers can add one or more beneficiaries to most financial accounts to bypass probate. The beneficiaries named on any financial account will be able to receive money left behind in that account following the death of the account owner without involving lawyers or a hassle.

You can add a beneficiary or a payable-on-death (POD) to most savings and checking accounts. Sometimes, banks seek information about beneficiaries during the account opening process, but not always. Many banks don’t allow you to change beneficiaries online. For banks with brick-and-mortar branches, you may need to visit a personal banker with the beneficiary or with the beneficiary’s personal information (address, Social Security number, etc.) in order to change or add a designation. If you don’t see any options for adding beneficiaries online, contact the bank directly.

It’s also possible that some banks do not allow account holders to designate beneficiaries on deposit accounts. ING Direct is one such bank. Unfortunately, the heirs of the deceased’s estate could have problems receiving the balance in one of the most popular online bank accounts. If this is an issue for you, consider moving your money from ING Direct to a bank that allows payable-on-death designations. With a will or a trust, this designation might not be necessary. Of all the choices, however, POD is the easiest, and every bank should offer it.

Almost always, brokerages and banks will ask for a beneficiary when you open an investment account, whether the purpose of the account is short-term investment or retirement.

Don’t think that your accounts are too small to worry about how the funds will be distributed after you pass away. The accounts could grow, and even if they don’t, the funds you have could be important to someone in the future. With small balances, there is even more of an incentive to avoid costly probate fees.

If you’ve been through any sort of major life change, like a marriage, divorce, or the birth of children, you should take a moment to review your accounts to ensure the proper beneficiaries are listed. As a single guy, this hasn’t been a major priority for me, but as I age, I’ve started to recognize its importance despite the lack of a wife and children. This will be one of my first steps to ensure my funds get in the right hands at the right time, followed by creating a will.

Published or updated September 8, 2011. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @flexo on Twitter and visit our Facebook page for more updates.

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Rank: PlatinumAbout the AuthorFlexo, the owner and creator of Consumerism Commentary, has been blogging and writing for the internet since 1995 and has been building online communities since 1991. Find out more about him and follow him on Twitter. View all articles by Flexo.

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Beware the Small Print of High Interest Savings Accounts

How many times have you seen ads for savings accounts that have touted superb interest rates?  And how many times have you looked into the offer only to discover that it isn’t quite what it seemed to be initially?

I’m not saying there are no good deals out there to be found.  For instance, a savings product like the HSBC Advance Online Savings Account still offers a rate that’s higher than the what an average bank account offers, plus low fees and no minimum balance requirements. However, it pays to be careful and to keep your eyes and ears open and your brain engaged when you are shopping for a place to park your cash. Those tempting posters and advertisements have always got small print –- and it’s the small print that you really need to look at more closely.

Here are some reasons why savings accounts with superb rates aren’t always the delightful find you thought they were.

1. They require a monthly savings contribution.

Some institutions may require you to contribute an amount each month to your account. This may be ideal if you've got a handle on your outgo, if you’ve got a good budget and you know how much cash you’ve got left over each month.  But if you struggle to put away the same amount each time (or you even miss some months altogether) it’s no good opting for this kind of savings account.  Instead, you’ll have to pass on the interest rate and settle for something less. For a savings account that’s more customer-friendly, check out the Sallie Mae Bank Savings Account.

2. The interest rate includes a "bonus" that disappears after the first year.

The good thing about these savings accounts is that for a specific time period, you can reap the rewards from a better rate of interest.  They very often have few limits and they allow you to take out your cash whenever you want to.  But they’re banking on the fact that you will forget to close the account and go elsewhere with your money. If you do opt for this kind of account, and you're really only after that rate boost in the beginning, then make sure you mark the anniversary on your calendar and move your money elsewhere when the intro rate expires.

In my case, I prefer to choose an account that still offers a high yield with or without the bonus tacked on.  I also look at savings accounts that have other things going for it -- say, if they are part of an institution that has a great reputation, has a brokerage arm and has other interesting investment products to offer.  EverBank is an online bank which offers accounts with initial interest rate boosts but also offers a great variety of investment products as well.

3. You don't get the stated interest unless you lock up your money for a given term.

An example of such an account is one that only pays out the advertised interest if you deposit your money and don’t touch it for four or five years.  Now there is nothing wrong with this in principle, if you are quite willing to tie up your money for this long.  But you wouldn’t choose this kind of account as your main savings account.  You should only consider it if you've already got a designated account that gives you more liquidity and that perhaps, contains your rainy day money.  If this is the case, you can enjoy getting a better rate of interest on any cash you are willing to tie up for a few years.

4. The account's interest rates change way too frequently.

How stable is that interest rate?  Perhaps you are lured to a savings account because of its interest rate advertisement.  At times, this type of fluctuation may seem to be a positive thing, particularly if rates are going up.  But what if the trend is downward?  If you’re using the rate as your primary reason for choosing an account, you may be disappointed later on when you find that the account’s rate changes quite a bit over time.  So if you’ve pegged your hopes on a particular rate, it may not necessarily last. 

As you can see, there are some good deals to be had on savings accounts, even today when the interest rates are incredibly low.  But you need to be prepared to give up something else in order to get them –-  whether that is access to your cash, a good rate for an extended period of time or something else.

This means that you have to consider all aspects of every account before making your decision on which one is the best savings account for you.  We all want our money to work for us and we want to get the best returns for it that we can.  But sometimes we also need to know where to draw the line.  Otherwise, we could end up getting tied to something that we really don’t need.

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