The Investment U e-Letter: Issue # 719
Friday, October 12, 2007 Everbank: Here's Why I Switched Banks and Left Bank of America for Good
by Alexander Green, Chairman, Investment U; Investment Director, The Oxford Club I didn't become a Bank of America customer the usual way. Twenty-six years ago, I opened an account with Flagship Bank, which was acquired by Barnett Bank, which was acquired by Nation's Bank, which was acquired by Bank of America. Customer inertia clearly favors the big national banks. However, I'm leaving Bank of America, for Everbank, for reasons I'm about to explain - and for other reasons you'd benefit from, as well. In some ways, leaving Bank of America wasn't an easy decision. As the No. 2 bank in the U.S., it has more than 5,700 branches in 29 states. Plus, once you've got checking accounts, business accounts, credit cards and electronic bill-paying in one place, the sheer convenience makes you reluctant to move. I'm moving away anyway. Here's why… Bank Error (Not) In My Favor My problems began when my publishing group moved its banking relationship from Bank of America to Citigroup, because customer service, according to one executive in accounting, was "pathetic." (An omen of what was to come.) After the switch, every time I deposited a check from my publisher it was routinely held, often for over a week. Yet my deposits were clearing my publisher's account - and my own Vanguard accounts - the very next day. I found this irritating, to put it mildly. But I was told that nothing could be done unless I met with a branch manager to remove the hold each time I made a deposit. Since I rarely had time for that, I simply endured the situation… until last June. That's when I made a deposit for my quarterly tax payment to the IRS. The teller - as usual - put a hold on it of more than a week, even though the deposit was a check written against my own Vanguard account. This time I spoke with the branch manager, telling her I had to have the funds available sooner so that I could meet the June 15 tax deadline. She assured me it wouldn't be a problem. "Go ahead and send your payment to the IRS," she told me. "I'll clear the check." But she didn't. Bank of America returned my check to the Internal Revenue Service (twice) for insufficient funds, even though the IRS submitted the check a full week later - and my Vanguard check had cleared the day after I deposited it. When I notified customer service at the bank, the representative apologized and credited me back the returned check fee. I sent a replacement check to the IRS. And the IRS sent me something, too. A note saying I owned them a $3,100 penalty for the bounced check. It wasn't a typo. If you're going to start bouncing checks, apparently the IRS isn't a good place to begin. When I explained to an IRS representative that the check didn't bounce due to personal negligence but because of an error at the bank, he said they would remove the penalty if I could provide documentation that the bank was at fault. What a relief. Or so I thought… "Pathetic" Customer Service Over the last three months, I have spent a ridiculous amount of time (more than $3,100 worth, I can assure you) speaking with customer service managers, branch managers, and regional managers at the bank. None of them ever disputed the facts. Each promised to get me the letter I needed. And each time the letter came - three times to be exact - it explicitly stated that the bank had "made no error." At this point, I told a customer service manager he could take his "100% customer accountability policy" and use it to line the bird cage, as far as I was concerned. Needless to say, I started looking for another bank. But I didn't have to look far. I'd known for years about the advantages of EverBank. EverBank: Easy, Innovative Banking EverBank is an innovator in electronic global banking. It offers standard services like checking accounts, saving accounts, credit cards, money markets, online bill-paying and mortgages. But it also offers more exotic fare, from foreign-currency-denominated CDs… to equity trading… to accounts for speculating on coins and other precious metals. EverBank is now one of the fastest growing banks in the country. It has won several awards for its innovation in banking and service, including Forbes' "Best of the Web" and Freddie Mac's "Tier One Hall of Fame." It's not hard to see why. 6 Reasons to Switch To EverBank For starters, its costs are much lower than brick-and-mortar banks. That means all of EverBank's personal deposit accounts come with a "yield pledge" to ensure you're always getting a yield that ranks in the top 5% of the nation. And the comparison between EverBank's FreeNet Checking and Bank of America's Advantage Checking isn't much of a challenge. - Bank of America's Advantage Checking offers a whopping one half of one percent yield on any balance. EverBank offers a 6.01% introductory rate for 90 days - then you enjoy a tiered rate based on your average daily balance. It can be as much as 5%, but even a $1 balance earns a minimum of 3%. (Worst case, your checking account at EverBank will earn six times what it does in Bank of America's Advantage Checking.)
- EverBank has no monthly fees if a $1,500 balance is maintained. (It's only $4.95 if it isn't - and that's only if you're below the minimum balance and use online bill pay.) Bank of America, on the other hand, charges $20 a month, waived only if you maintain a $5,000 averaged daily balance. (If you maintain a $5,000 average balance, of course, it's still costing you still more in the form of lost interest.)
- EverBank offers ATM reimbursement. Bank of America doesn't.
- Bank of America charges a fee for fund transfers in or out. EverBank doesn't.
- Plus, I know the folks at EverBank. Frank Trotter and his staff are honest, efficient, trustworthy and unfailingly courteous. The bank has the feel of "local" customer service. Bank of America offers something, too. But, personally, I wouldn't call it customer service.
- If you're an Oxford Club member, EverBank even offers you a comprehensive investment package worth over $700. Check it out.
In short, EverBank offers a great deal. To open an account or learn more, call 888-882-3837, or simply visit the website. Tell them the folks at Investment U sent you. Good Investing, Alex P.S. - I did eventually get that letter from Bank of America, by the way. How? By telling a regional manager I was a journalist writing up my whole sordid experience with the bank for national publication. I told her I just wanted to make sure I spelled her name right. I got the letter three days later. Disclaimer: The publisher of Investment U maintains a marketing relationship with EverBank, but it's important to note that we'd recommend their products and services anyway. The Investment U Crib Sheet The Cleanest Fuel on Earth Is About to Hand Investors 2,689% China is driving up one commodity faster than copper, nickel, lead or even oil. It's starting a breakout that could push prices up another 426% in the coming months. And supply is at historic lows, falling short by 60 million pounds. Look for gains of 2,689% or more as this precious commodity "goes vertical." Learn more. Related Articles Investment U Archives 
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