Mandy: EverBank’s Confusing Array of Interest Rates

I plan to open up an account with EverBank within the next week to take this bank for a test drive. I like what I see of EverBank’s interest rates, but I have to admit the structure is not as simple as I like to see.

As of today (July 2) the savings product, “Yield Pledge Money Market Account,” sports a 1.85% APY, but thanks to a 3.01% APR bonus rate for three months, the effective rate over the first year of having money in this account can be as high as 2.15% APY. If you’re confused, review the difference between APR and APY.

The checking product, “FreeNet Checking Account,” offers tiered rates from 1.02% to 1.85% APY. Again, money from new customers earns a 3.01% APR bonus rate for the first three months. With this bonus, if the regular rate does not change, you would theoretically earn an APY between 1.52% and 2.15%.

EverBank also offers certificates of deposits (CDs) with maturities varying from 3 months to 5 years. Like most CDs, you will be penalized if you withdraw your funds before maturity. A minimum deposit of $1,500 is required for any EverBank CD. The rates range from 1.25% to 3.10% APY as of today.

Also notable are the foreign currency CDs available at EverBank. With foreign currency a change in exchange rates can either work for you or against you by increasing or decreasing your effective interest in terms of US dollars. If you believe the Mexican peso is due for growth, you may wish to invest in a CD denominated in pesos to take advantage of the 4.04% APY and the increase of the worth of a peso against the dollar.

I’ll post a full review of the account opening process shortly.

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EverBank’s Confusing Array of Interest Rates