My wife recently applied for an EverBank Yield Pledge Money Market account for their introductory rate. Everbank also “pledges” to stay amongst the top 5% of competitive banks, and I have seen that rate has indeed stayed competitive to other online banks for the last couple of years. (WaMu is now down to 2.25% APY, ahem…)
Currently, the promo rate is 1.10% for 6 months, and the standard rate after that is 0.86% APY. (1.10% guaranteed for 6 months is still better than any 6-month CD out there.) The application process is a lot different now than when I applied for myself a year or so ago, so I’ll start with reviewing that.
Background and Promotion Rules
Everbank always offers a 6-month introductory promo rate to both their FreeNet Checking and Yield Pledge Money Market accounts. The rule for these promotions is that you can only get one 6-month bonus period per person (Social Security number), and that you can get them at the same time, but not one after the other. As you might have guessed, one way around this is for couples to open separate accounts at least 6 months apart.
So if you opened both the FreeNet Checking and Yield Pledge Savings account on November 1st, you can get the promo rate for both ($100,000 total balance) for 3 months. If you open up the Yield Pledge a month later, you’ll only get the promo rate on that account for 2 months.
Step 1: Personal Information
The standard info is requested on the first part of the application – address, SSN, and also employer info.
Step 2: Identity Verification – No Hard Pull
In the past, Everbank has done a hard credit check when taking applications. However, it appears that they no longer do this. For one, my wife did it and she has a credit monitoring service which alerts her of such activity – no alerts from Everbank.
The website itself is a bit confusing on the subject, stating the following:
What kind of inquiry does EverBank obtain and how will it affect my credit score?
EverBank obtains a credit inquiry for the purposes of opening an account. While such an inquiry will show on your credit report, it’s coded differently than an inquiry for a loan and would have less of an impact on your credit score.
I personally interpreted this as a soft pull, but I also called to confirm. The customer service rep stated that they no longer do a “full credit check” but only confirm ID.
This is finally supported by the fact that they now ask the real-time Equifax ID Check questions during your application, which are based on data from your credit report. Things like names of streets you’ve lived at, where you hold mortgages, and previous employers. Noneof the banks that I’ve had do this have done a hard pull.
Step 3: Funding
Finally, we arrive at the funding ($1,500 minimum). In the past, you had to wait for a welcome package and send in a physical check along with a physical signature and other paperwork. Now, as long as your initial deposit is under $25,000 you can fund online using routing and account numbers. From the website:
ACH funding is available for personal Checking, Money Market, and Asset Manager Service cash management accounts. You can fund just the minimum opening deposit or any amount up to a total of $25,000 per day. For funding more than $25,000, you’ll want to open now with $25,000 and send a check or wire for the additional amount.
For the ACH funding source account, you can use any account that supports check writing. You can verify ownership of your source account in 3 days through a small deposit and withdrawal.
You can also choose to activate the Checkwriting option here (3 per month).
After you enter these details you can go ahead an log into the Everbank website and poke around, although it takes a few days for the initial deposit to arrive. All in all, the application process is much improved by being completely online with no paperwork, with apparently no hard pull.