EverBank Review: Checking, Savings and CDs

EverBank
NerdWallet’s rating: 3.5 / 5.0

EverBank’s rates look great to new customers, but they come with a catch or two. Minimum opening deposits for checking and savings accounts are rather pricey, and those rates drop after the first year.

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at EverBank

Still, if you can keep $5,000 in your checking account, this Florida-based bank will reimburse charges incurred at cash machines across the country, which gives it one of the better ATM networks available.

EverBank may be right for you if:

• You want to take advantage of strong short-term introductory rates.
• You can keep a high balance to take advantage of generous ATM reimbursements.
• You prefer to manage your accounts on your phone or computer.

Our Ratings
Checking accounts
Savings & money market accounts
Certificates of deposit (CDs)
Customer experience
Other fees
Overall

Checking accounts

3.5 / 5.0
Although EverBank’s introductory rate is impressive, it is temporary. If you withdraw cash a lot, the small ATM network might be a deal-breaker unless you keep your balance above $5,000.

Pros	Cons
Introductory rate of 1.11% APY for first year; ongoing rate of 0.25%-0.61% APY EverBank doesn't charge any ATM fees and will reimburse third-party owners' fees if you keep a balance of $5,000 No minimum balance requirement	While it's nice EverBank tries to make all ATM transactions free to its customers, its own ATM network is small, meaning you'll have to keep $5,000 in the account to make this a reality. Small ATM network also makes it difficult to deposit cash High minimum opening deposit of $1,500

» MORE: NerdWallet’s best online checking accounts

Savings and money market accounts

3.5 / 5.0
EverBank doesn’t offer a traditional savings account, but its money market account comes with an impressive introductory rate. Still, the annual percentage yield of 0.61% is a long climb down that’s not worth it when you can get an ongoing rate of 1% APY at another bank.

Pros	Cons
Introductory rate of 1.11% APY for the first year No minimum balance requirement	Lower ongoing rate of 0.61% APY High minimum opening deposit of $1,500

» MORE: NerdWallet’s top high-yield online savings accounts

Certificates of deposit

3.5 / 5.0
CD rates at EverBank are decent, but better offers are available at online-only banks or local credit unions. The minimum opening deposit is a bit high, but larger amounts are ideal for CDs.

Pros	Cons
Ten term lengths, ranging from three months to five years 1-year term: 0.90% APY 3-year term: 1.34% APY 5-year term: 1.76% APY	High minimum opening deposit of $1,500 Early withdrawal penalties apply Matured CDs renew automatically after 20 days

Customer experience

3.0 / 5.0
There are fewer than a dozen branches, all in Florida, although EverBank representatives are available 24 hours a day by phone and during normal business hours on Twitter. The mobile banking app lacks features to transfer money to friends or family at other banks. (You can still transfer money, just online.)

Other fees

3.5 / 5.0
EverBank makes up for a small ATM network in other ways. It offers free overdraft transfers with a linked account or line of credit and doesn’t charge an overdraft fee. Still, a $30 fee for nonsufficient funds can be applied up to two times a day.

Great introductory rates while they last

EverBank’s introductory rate made NerdWallet’s list of the best money market accounts because 1.11% is hard to beat, but it comes with an expiration date.

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at EverBank

And about those rates — EverBank touts in its Yield Pledge that its returns will stay in the top 5% among “competitive accounts.” But “competitive accounts” is a survey of the 10 largest banks and similar institutions in 10 large U.S. markets, and larger institutions tend not to have the best returns. Customers thinking long term can earn more at banks and credit unions with higher ongoing rates.

Melissa Lambarena is a staff writer at NerdWallet, a personal finance website. Email: mlambarena@nerdwallet.com.

This post was updated June 24, 2016. It was originally published March 18, 2016.

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RATINGS METHODOLOGY

For banks and credit unions, NerdWallet’s overall rating is a weighted average of each subcategory: checking accounts, savings and money market accounts, CDs, customer experience and other fees. Factors we consider, depending on the subcategory, include rates and fees, ATM and branch access, account features and limits, user-facing tech and customer service. Several Nerds contribute to each financial institution’s ratings to ensure consistency and accuracy.

What the ratings mean:
— Among the very best
— Very good; only minor caveats for most customers
— Good; issues that might make a difference to some customers
— Fair; make sure strengths and weaknesses are a good match for you
— Poor; proceed with great caution
(or below) — Best to avoid

from NerdWallet
https://www.nerdwallet.com/blog/banking/everbank-bank-review/