EverBank’s notorious “yield pledge money market account” just shot up to the number 1 spot on our money market tables by featuring a first year APY of 0.91%. This new rate almost doubles the current national average of 0.50% APY, but is only available during the first 12 months of opening the account. The interest rate following the first year is variable but still falls under their “yield pledge” which promises to keep their variable rates amongst the top 5% of all online savings accounts.
The way they calculate this yield is as follows:
Upon the first 6 months of opening the account, you’ll earn a promotional APY of 1.05%. During the second half of the year your rate will dip back to it’s standard APY of 0.76%. Averaging out these two yields on an annual basis is how you come up with the 0.91% APY.
The interest rate applies to balances between $1,500 and $50,000.
This is a fairly competitive offer from EverBank. The guaranteed 6 month yield of 1.05% is far more lucrative than any of the top 6 month CD rates available online. And although the first half of the year is followed by a variable rate, their yield pledge provides a sense of security in knowing that it will remain competitive during the second half.
Also, keep in mind the FED has flat out stated key rates will remain at these levels through 2014 despite any overall rebound in the economy. Therefore savings rates, in general, likely wont rise in any dramatic fashion for 2 years making this offer fairly enticing for the interim.