EverBank has just cut rates on its Yield Pledge Money Market account with the special 3-month bonus rate down from 2.01% APY to 1.51% APY.
The Yield Pledge Money Market Account offered a very tempting introductory offer capable of luring potential customers away from other money market accounts out there.
Before the rate changes, the account had a 3-month bonus rate of 2.01% that challenged the popular money market rates from AmericaNet Bank and Redneck Bank, which are paying 1.75% APY (accounts are “sold out”). But, the appeal falls after the first three months – the ongoing rate is almost half the introductory rate.
EverBank Yield Pledge Money Market Rate Changes
The previous Yield Pledge Money Market Account rates:
|Balance||3-month Bonus rate||Ongoing Rate||Ongoing APY||1st-year APY|
|$50,000 or less||2.01%||1.05%||1.06%||1.30%|
|$50,001 - $10,000,000||-||1.05%||1.06%||1.30% - 1.06%|
The new Yield Pledge Money Market Account rates as of 3/1/11:
|Balance||3-month Bonus rate||Ongoing Rate||Ongoing APY||1st-year APY||Balance||3-month Bonus Rate||Ongoing Rate||Ongoing APY||1st-year APY|
|$50,000 or less||2.01%||1.05%||1.06%||1.30%||$50,000 or less||1.51%||1.00%||1.01%||1.13%|
|$50,001 - $10,000,000||-||1.05%||1.06%||1.30% - 1.06%||$50,001 - $10,000,000||-||1.00%||1.01%||1.13% - 1.01%|
After the change, the first year’s APY is only 1.13% and the ongoing yield is 1.01%. These yields cannot compete with the better returns from many high-yield online savings accounts. Even though the 3-month bonus rate is at 1.51%, it doesn’t seem as spectacular.
One more detail to take into consideration is the $8.95 account fee for every month that your average daily balance falls below $5,000. Most savings accounts do not charge any monthly fees.
In the past two months, interest rates have been dropping across the online banks that tend to offer the highest savings yields. Discover cut savings account, money market accounts, CDs, and IRA CDS rates early this month. Also, Ally reduced the rates on its savings accounts. So, it doesn’t come as much of surprise that EverBank is following in their footsteps.