225k is too much in something that the FDIC only insures up to 100k. Second savings you pay regular income taxes, but most other investments if held longer than a year you can pay long term captial gain taxes. The difference could be between paying 25% after a year or 15% after a year.

If inflation is around 3% and you are making 4%, then you are really only making 1% with buying power and then being taxed on top of that 1%, doesn't seem like much of earning, it's why I'm not big into chasing small rate changes. If one savings has 4% and another one has 5%, then 1% I can see it worth chasing, but a quarter of a percent is not worth it for me at all.

The only reason I use a savings account is for keeping the money semi-safe from inflation for when I need to make a purchase or I keep a little bit in there for a great liquid account. The checking account is really pretty nice, because I figure money comes in and money goes out, so might as well make some money if it's compounded daily and better than nothing, everybody needs a checking account, so it's nice to make some money on the checking.

didYOUsearch said:
I am very unhappy with Everbank's account opening delays, which negated almost all the extra interest I should have earned. I overnighted a cashiers check, and they proceeded to do NOTHING with the application and deposit for 15 days (due to the volume of new applicants) so I lost half a months worth of interest.

I will be cancelling after the three months to get the $50. Note you must do 3 billpays to qualify for the $50.

I agree completely. Not only have I experienced a couple weeks of lost interest, the HSBC-like rounds of opening paperwork had my UserID and password identical so I couldn't login. Their explanation - bugs in the system due to the volume of new accounts. Another piece of bad news verified by a CSR: new deposits will take at least 5 days to clear. It's safe to say my ending balance will jump by $50 on my way out the door....

routing said:Everbank is worst bank I met. It took 20 business days from the time Everbank received my new account application and 100K deposit to open my account. My deposit did not earn any interst until Everbank gets around to opening the account.


I guess I was lucky only took a week sent a check and the account was earning interest a day before thecheck cleared, made other deposits via their ach system and lose 2 days interest each time (much like hsbc)

The problem is you arent looking at what COULD happen to a bond fund.

Stocks beat bonds over the long run, bonds beat savings accounts. But with a bond fund you could be down 5-10% in real capital losses if interest rates rise, while a stock fund could lose 30% or so in short order in the market tanks.

Returns increase with increased risk.

There IS more risk in a tax free bond fund than a savings account.

cheapbone said:It depends what is defined as safe?
It's not very hard to find something that I consider safe that has a better return. I'm looking at even a municipland bond that is tax free that has a 5 year return of 6% and in the past 10 years it's been negative one year. The past 10 years it's had a return of 5.56% and that's tax free.
I am not going to say go with one investment, but take a look at vanguard's, T.Rowe Price and Fidelity's bonds funds for instance.
I'm looking at T. Rowe price's tax free bond and it has a return of:
1 year = 6.14%
3 year = 6.73%
5 year = 6.20%
10 year = 5.56%
Since 1985 = 7.76%
As we all know past performance is no indication of future returns, but I just have never seen a savings account as an investment and never has the goverment. What I'm listing is tax free, even the tax returns on other funds that are taxed if held long term you pay lower taxes. For me lower taxes and higher rates are two things I'm willing to risk my principle on and especially bonds.

mbaker4096 I appreicate it being pointed out about presendtial. I am actually considering switching in a year or so, I was just saying that I'm not looking to switch, because the difference isn't enough for me, that's all.
I really do appreciate the info and link. If I had to do it over again I might have gone with presidential, except I don't like forced direct deposit and I want some Cash Back for withdraws, but a much higher rate like it gives can make it worth it.
Thanks for sharing the link.

it doesnt, they are understaffed and taking as long as they want. And the customers lose out in the process.

I asked a supervisor, what if they took 3 months to get around to opening my account, my cashiers check would sit there not earning interest for 3 months and thats somehow MY fault? They said yes. Ridiculous. If i mail in deposits, they can take as long as they feel like to deposit them? No way.

Im going to do a letter to their corp office before the 3 months to see if I get some satisfation, otherwise they are getting the cancelation and $50 request at teh 3 month point.

Why would you ovenight a cashiers check ?

Did you think you would get immediate interest and it would be worthwhile ?

Me, Ive decided to wait untill the various other promo rates run out before using my 1 time everbank thing. Even then, I will probably mail a check from GMAC.

Wouldnt that work or would they hold that for 10 days before it starts acruing interest ?

didYOUsearch said:thepickandroll said:based out of Utah. go everbank~I think they are based out or New York. At least thats where correspondence and the CSRs are from (with heavy NY accents)

I am very unhappy with Everbank's account opening delays, which negated almost all the extra interest I should have earned. I overnighted a cashiers check, and they proceeded to do NOTHING with the application and deposit for 15 days (due to the volume of new applicants) so I lost half a months worth of interest.

I will be cancelling after the three months to get the $50. Note you must do 3 billpays to qualify for the $50.

Despite all the negative press Everbank opened my account quickly but I live in NJ--their mailing address is in NY.

mbaker4096 said:Ugh.

Check your Everbank accounts and verify you're getting paid at the proper, promotional interest rate.

Just checked and found that they'd only credited me with 3.55% interest for both January and February.

Sheesh.

I was just checking the Everbank interest on my account and found :
1 - No one will ever get 5.01 apy! The most you will Everget IS 4.98 apy! Maybe that's why they call it Everbank. A better name would be Neverbank ,if you expected 5.01!
2- The 4.89% rate they paid me was correct for February a 28 day month.
The 5.01apy vs the real 4.98apy is small but is it ethical? It's probably in the fine print,but a little disturbing.

Just received my everbank statement in the mail. It says my name on page 1. Page 2 and 3 is for someone else that lives in the same city as me. I can see his account number and all his transactions for the past month.

This doesn't instill much confidence in the bank.