I recently wrote about a couple of banks that were (and still are) offering 5% or better interest rates in their high yield savings accounts. The two institutions I wrote about either required a $5k or $25k balance to earn the high rate. I had a few people reach out and ask if I knew of other HYSAs that don’t require a minimum balance and don’t charge fees. I did a bit of research and here’s what I dug up.

What I found

There are several online banks and credit unions offering high interest rates on some savings accounts with varying minimum requirements and fees/penalties. Here’s a link to some of the higher interest-bearing accounts out there. There was one bank that caught my eye: EverBank. I hadn’t heard of this bank before and they were offering a 5.15% savings account. They don’t require a minimum deposit or a minimum monthly account balance. There are no fees or penalties for going under a given balance. No monthly fees, either. I felt like this might be too good too be true. Was this a legit bank? Was there a catch? I decided to do some research.

Is EverBank Legitimate?

Yes, EverBank is a legitimate bank. It’s not a scam. Here’s what I found out about EverBank:

First, and most importantly, it IS FDIC insured. This is a very important designation and you should never bank at a bank or credit union that isn’t FDIC or NCUA insured. Banks are FDIC insured and credit unions are NCUA insured. When a bank or credit union has this insurance, it means that depositor accounts are protected up to $250k by the federal government.

Second, EverBank used to be TIAA’s (Teacher’s Insurance and Annuity Association) banking segment. TIAA sold its banking division to private investors and it has been rebranded as EverBank. TIAA made the sale to refocus on its core retirement, insurance and wealth management offerings and still maintains a relationship with EverBank as well as an ownership stake.

EverBank in essence has been around for a while, it just previously existed as TIAA’s bank. It is important to note that EverBank is under new ownership and has a new national charter. It IS FDIC insured, meaning your money is safe.

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Is there a catch?

The only physical locations for this bank that you can walk into are in Florida. Otherwise, you’ll need to do all your banking with this bank online. I know this can instill fear in some. Also, with the savings account, there isn’t the option to make withdrawals or deposits at an ATM. This begs the question…

How do I get my money in… and out?

It is possible to connect your EverBank account to a checking or savings account you have at another bank. It seems pretty straightforward to get this done. You can make mobile deposits with the app, and after you have an account connected can move money via ACH withdrawals and deposits. You can also wire money into the account for free while outgoing wires start at $25. There isn’t a debit card associated with this kind of account so no cash withdrawals or deposits via ATM directly. You can also mail checks to them to deposit.

According to EverBank, funds deposited into the account will be available the day the funds are deposited. This is a nice feature as some banks like, CIT Bank, can take up to 2 days.

Which account gives the high interest rate?

At EverBank, the EverBank Performance Savings Account is their high yield savings account that’ll get you that 5.15% rate (as of 2/2/2024). The rate is variable, however, EverBank tries to keep it’s rates in the top 5%. When rates eventually fall, EverBank promises to stay competitive.

What you’ll need to open the account

When you open this account you’ll need your SS# number handy as well as the routing number and bank account number you wish to move funds from. You’ll also be asked some personal questions like your date of birth, occupation, phone number, email and address. Make sure to put your cell number in as you will need to receive verification codes as texts (or as a phone call) when you open your account and when you log in after.

Why not a Certificate of Deposit (CD)?

EverBank does have an attractive CD rate right now of 5.25% APY for a 9 month CD. Purchasing this CD requires a $1,000 minimum. I have put some of our cash into a CD but I like having most of our emergency fund liquid. When you purchase a CD, most of the time it’s difficult to cash out the certificate before the maturity date without incurring a penalty. There are some no-penalty CDs out there that will allow you to take money out of the CD before maturity. However, they offer lower interest rates.

What about I Bonds?

I Bonds are meant to keep cash savings from losing value to inflation; they won’t make you rich. When inflation was really high, these bonds were offering 9.26% interest. That was an eye popping rate and investors flocked to open up Treasury accounts. When I Bond interest rates went lower than the interest I could earn in high yield savings accounts and CDs, I sold the bonds and moved the money to a HYSA at CIT and a CD at Green State. From what I read, many other savers did, too.

HYSAs for All!

Even if you don’t meet the minimum for some high yield savings accounts there are some out there will let you open an account without a minimum deposit, minimum average balance, penalties or fees. There are also other local banks and credit unions that are offering HYSAs, money market accounts and CDs at competitive rates. EverBank seems to have a very good offering and could be a great option to help grow your savings. If anything I hope this article encourages you to investigate local banks and credit unions to help you get the most bang for your buck!

Cheers!

Mrs. Moneyaire