A few months ago, I posted that I loved Everbank for its high rates and good customer service. Well, the bloom is off the rose, as they say.
This weekend while reading Consumerism Commentary, I learned that they increased their minimum monthly balance to $5,000 and raised the monthly low-balance fee to $8.95. I checked online, and it did indicate the new limits, so I called the bank. They said the minimum became effective July 1, and notices were sent out in May. I didn’t receive a notice.
I used this account primarily to hold my down payment funds, and happily took advantage of the nearly 4% initial interest rate to earn lots of interest on that money. Now there is less than $10,000 in the account, and my husband and I had just decided we will use some of the money to fill our new house. We also plan to use our savings account to accrue property tax and homeowner’s insurance payments. Finally, the account will serve as our emergency fund.
We’re Changing Banks
At first we considered sticking with Everbank, but now we’ve decided that we don’t want the limitation of the high minimum balance. We also don’t want to worry about getting hit by a $9 fee if we have an emergency and have to go below the minimum. No other national online bank has a minimum balance requirement. We also no longer have the high teaser interest rate. Our current rate is almost on par with other online banks. At this point, Everbank’s thank you notes aren’t enough to keep me around. I’ll be moving to a different bank that won’t whack me with a fee for using my money.
What’s the Motivation for This Uncompetitive Move?
This is what truly baffles me. If none of your major competitors have a minimum balance, why would you increase yours from $1500 to $5000? It seems like a sure way to drive depositors away.
How to Close Your Account
This is the tricky part. If you drain the account and THEN close it, you won’t receive it accrued interest that hasn’t yet posted to your account. If it’s enough money to make a difference, notify them of your desire to close the account first and use their process to ensure you receive the interest.
It’s getting tough to find a good bank, but my hunt is on again. Oh, Everbank, why do you plague me so?