APY GUY: Maximize Your Savings & Earnings

TIAA Bank

TIAA Bank Yield Pledge CD Rates – Up to 0.70% APY!


image credit: tiaabank.com

Tiaa Bank, previously called EverBank, is a Florida-based financial services institution with an all-inclusive lineup of digital personal banking products. These include high yield money market accounts, certificates of deposit, savings accounts and even foreign currency CDs.

This U.S. bank features a limited number of brick-and-mortar branches, but you don’t need to visit these in order to manage your accounts. So Florida resident or not, you have access to this online institution.

When TIAA, short for the Teachers Insurance and Annuity Association, acquired EverBank Financial Corp in 2017, the institution became legally known as TIAA, FSB, and the online personal banking portion of the company was rebranded as TIAA Bank.

Complicated history aside, TIAA is a Fortune 500 company boasting incredible profits every year, but is it an online bank worth your time and money? Keep reading for all the information you need to know about TIAA Bank deposits accounts—as well as other pertinent banking and accessibility details—to decide whether this online bank is right for you.

TIAA Bank Basic Savings + Yield Pledge Money Market Account Details

All of TIAA Bank savings accounts and deposits are federally insured by the FDIC up to $250,000, the maximum amount allowed.

TIAA Bank Basic savings accounts are one of the bank’s less impressive product choices. Although they are significantly higher than the current national average (which hovers around 0.07% APY currently), they are still much less competitive than other online offers.

Though uncompetitive, these accounts are accessible. You only need to deposit and maintain an average daily balance of $25 for a Basic Savings account with TIAA Bank.

If your balance drops below this minimum, you’ll be charged a $5 fee every month until you get it back above the threshold. If you happen to live in Rhode Island you are exempt from this low balance fee. This account also charges a $30 non-sufficient funds fee on overdrafts.

Interest accrues daily and credits monthly to your account.

The TIAA Bank Yield Pledge Money Market accounts is their other variable rate account and this one boasts a higher APY – especially on larger balances. For the first year after opening a money market account, you’ll earn an intro APY of 0.45%.

Although money market accounts come with variable rates, TIAA Bank guarantees a 0.45% APY for an entire year after opening. Above is the calculation on how much you’d earn with a $50k deposit.

After that year is up, you’ll earn an ongoing APY based on your balance amount. See table below.

TIAA Bank Yield Pledge Money Market

BalanceAPY
$0 – $9,999.990.40%
$10k – $24,999.990.40%
$25k – $49,999.990.40%
$50k – $99,999.990.40%
$100k +0.40%

The average annual percentage yield (APY) on money market accounts across the country sits at just 0.09% currently.

There is a minimum deposit requirement of $500 to open one of these accounts. But ultimately, unless you have more than $25,000 ready to go, you’re probably better off just opening a Basic savings account as you will earn more with this on lower balances than you would with a TIAA Bank MMA. 

However, Yield Pledge Money Market accounts guarantee high rates through TIAA Bank’s Yield Pledge promise, which entails weekly competitor assessments and adjustments necessary to ensure that these rates are in the top 5% across Competitive Accounts. The Basic Savings account, conversely, does not come with this guarantee—do with this what you will.

Interest on savings and money market savings accounts is compounded daily and credited monthly.

Per federal regulation D, you are limited to 6 transactions into or out of a savings or money market account each month. This includes ACH transfers, checks, internet, phone, and mobile-initiated transactions, and more. Should you exceed this limit excessively or frequently, TIAA Bank reserves the right to restrict your access further and transfer your balance into a Cash Reserves account.

TIAA Bank CD Rates

TIAA Bank’s product suite features a few certificate of deposit options, including “Yield Pledge CDs,” and “Bump Rate CDs.” Their product line used to offer “Basic CDs” that came with APYs slightly under the yield pledge products, but these appear to have been discontinued.

If you’re after a higher rate on a CD, consider you probably want to take a peek at their Yield Pledge CDs. These products are also backed by the high yield guarantee previously mentioned and features slightly better yields across the board.

Unfortunately, you’ll need to cough up at least $5,000 to be eligible for any of these accounts.

TIAA Bank Yield Pledge CD Rates

CD TermAPY
3 month0.25%
6 month0.30%
9 month0.35%
1 year0.40%
18 month0.45%
2 year0.50%
30 month0.55%
3 year0.60%
4 year0.65%
5 year0.70%

To put these offers (above) in perspective, a 12 month CD currently yields roughly 0.22% APY, according to national FDIC averages.

The other type of CD offered through TIAA Bank is their Bump Rate CD.

Bump your APY if rates rise during your term!

The Bump Rate CD is a specialty CD that gives users a one-time rate bump feature that allows them to lock into a better rate that comes along before their certificate matures (this is the same as a step-up or step rate CD). Right now, this account is a 3.5 year term that requires a minimum opening deposit of $1,500 and earns 0.60% APY.

Interest is compounded daily and credited according to your account agreement upon issuance.

Early withdrawal policies on Yield Pledge CDs are as follows:

  • 22 days’ interest on 3 month CDs,
  • 45 days’ interest on 6 month CDs,
  • 68 days’ interest on 9 month CDs,
  • 91 days’ interest on 1 year CDs,
  • 136 days’ interest on 18 month CDs,
  • 182 days’ interest on 2 year CDs,
  • 228 days’ interest on 30 month CDs,
  • 273 days’ interest on 3 year CDs,
  • 365 days’ interest on 4 year CDs, and
  • 456 days’ interest on 5  year CDs.

Unlike most bank deposits, these CDs do not automatically renew and come with a grace period of 10 days after maturity.

Banking Experience and Customer Sentiment

Unlike many online banks today, TIAA Bank actually does offer ATM cash access at an impressive 80,000+ fee-free locations. TIAA Bank does not charge ATM fees and will reimburse out-of-network fees imposed by other institutions if your average daily balance is at least $5,000. If your balance is below this, you’ll be reimbursed up to $15. There are 11 TIAA Bank branch locations across Florida.

TIAA Bank offers both a Basic Checking and a Yield Pledge Checking account option. A TIAA Bank Basic Checking will not pay you interest, but a TIAA Bank Yield Pledge Checking is an interest-bearing account that earns a 1-year intro APY of 0.40%. After that, your APY will be between 0.15% and 0.30%, depending on your balance.

Overall, people seem to have a lukewarm impression of TIAA Bank from a customer experience perspective. Out of 119 user reviews left for the bank on WalletHub, 45% of reviewers gave the bank 3 stars for an average rating of 3 stars. And out of 23 reviews on DepositAccounts, TIAA Bank scored just 2.5 stars. 

Customer service at TIAA Bank could use some work, according to customers themselves. The overwhelming majority of negative reviews left for the company are related to bad experiences with customer support, with representatives being called condescending, rude, arrogant, and unhelpful by several users. Most positive reviews pertain to good rates and simple sign-ups.

The TIAA Bank apps, on the other hand, are supposed to be really solid. With 4.6 stars on the App Store and 4.5 on Google Play, it’s safe to assume that you can count on a user-friendly and comprehensive mobile banking experience through the TIAA Bank app.

TIAA Bank limits ACH transfers from a TIAA account to an external account to $50,000 daily and from an external account into a TIAA account to $250,000 daily.

To reach customer service, call the client solutions team at 1-(888)-882-3837 or tweet @TIAABankHelp. Representatives are standing by 7 days a week from 8 AM to 11 PM (ET).

Final Thoughts

TIAA Bank has a diverse and competitive set of FDIC-insured deposits and variable rate savings accounts.

They are certainly worth checking out if you’re searching for an online bank that can handle all of your banking needs and offer respectable rates across the board.

Just be careful not to sign up with this bank for its introductory offers without knowing what you’ll get long-term. The 1-year introductory period on a TIAA Bank Yield Pledge MMA, for example, would definitely make just about anyone want to join, but the ongoing rates, while respectable, are still less competitive than other bank rates.

Overall though, Yield Pledge guarantees, low balance requirements, and mostly competitive rates make this bank a solid choice.

Foreign Currency CDs – Are They Worth It?


If you’re dismayed with the current interest rate environment as a saver then you may be considering foreign currency CDs as a potential alternative. Perhaps with the hope that another country might have a more favorable interest rate landscape than our own.

While you’d be correct to assume that other countries have better savings rates, you may be surprised to know that foreign deposits inherently carry quite a bit of risk.

Additionally, for retail investors, we would strongly recommend consulting with a certified financial advisor prior to opening any foreign currency CD. Unless one has a thorough understanding of government and monetary policy in the desired country of investment, outside advice by a certified professional should be sought.

In this article we’ll discuss the benefits and drawbacks of investing in foreign currency CDs and where you can open them.

Understanding Foreign Currency CDs

In many ways a foreign currency CD is just as simple and straightforward as a traditional CD you’d open at your local bank or credit union. The opening process, minimum deposit requirements, potential early withdrawal fees are usually all fairly standard.

The major difference with these products – and where the inherent risk lies – is with the currency fluctuation while the deposit is active.

Any weakening of the foreign currency (relative to the US dollar) while your money is tied up has the potential to eat away your interest and even principal. Conversely, any major strengthening of the foreign currency (relative to the US dollar) could amplify your earnings.

Additional Account Details:

Foreign Currency CDs generally come with similar early withdrawal fees and minimum deposit requirements, however, their durations tend to be shorter than standard US-based certificates of deposit. Maturities on foreign currency CDs usually range from 3 to 12 months.

How To Open A Foreign Currency CD

Opening a foreign currency CD is not easy and only a small handful of institutions even sell the products. It’s possible to purchase foreign currency deposits by reaching out to overseas banks, however you wouldn’t be eligible for FDIC insurance in these cases.

The most notable institution in the US offering foreign currency CDs with FDIC insurance is TIAA Bank (formerly Everbank). They require a minimum of $10,000 to open a WorldCurrency CD and take as much as 1% on currency conversion.

TIAA Bank’s WorldCurrency CD

TIAA Bank’s most popular foreign currency CD product is what they refer to as their “WorldCurrency CD.” These products come with short durations (3 – 12 months) and require a minimum of $10,000 to open. They are IRA eligible and are FDIC-insured against bank insolvency but not currency fluctuations.

When selecting a WorldCurrency CD you can filter between two groups – major currencies and emerging currencies.

TIAA Bank’s Major Currencies:

Image credit: TIAABank.com

As you might assume, the ‘major currencies’ feature more economically stable currencies while the ’emerging currencies’ (see below) feature emerging economies with more volatility.

Major currencies don’t often come with major advantages either. Savings rates in these countries aren’t always higher than the US either. For example, Hong Kong closed out 2019 with savings rates near zero and in August of last year a Danish bank launched a savings account with 0.6% negative interest rate for millionaires. So don’t assume you’ll get a stellar rate with minimal currency fluctuation risk.

TIAA Bank’s Emerging Currencies:

Image credit: TIAABank.com

The ’emerging currencies’ group features a riskier set of currencies.

While many banks in these countries offer attractive deposit rates, their country’s currency will always carry a high degree of risk against the US dollar.

Just to give you an idea of what kind of rates you could potentially lock-in, the current Mexican interest rate Banxico (base rate) is 7.250%. That said, the price of the Mexican Peso relative to the US dollar also fluctuated over 8% in 2019.

WorldCurrency CD Baskets

TIAA Bank’s “World Currency CD Baskets” are perhaps the most innovative set of foreign currency CD products on the market. These products are designed specifically to diversify currency and deposit holdings to offset risk.

They divide up currencies by three criteria:

  • Commodity Rich – The nations whose currencies comprise these baskets may benefit from increased world demand for their tremendous natural resources.
Image credit: TIAABank.com
  • Economy Driven – The nations whose currencies comprise these baskets may benefit because of sound economic strategies that help drive their monetary strength.
Image credit: TIAABank.com
  • Geographically Inspired – The nations whose currencies comprise these baskets may benefit from certain regional strengths and geopolitical strategies.
Image credit: TIAABank.com

How Can You Lose Money With Foreign Currency CDs

What is the largest risk to your foreign currency CD? A strengthening US dollar.

Consider the following:

You decide to purchase a 6 month CD for $10,000 in Indian Rupees because it is currently paying a generous 5% APY.

To open this CD you first need to exchange your $10,000 US dollars into Indian Rupees.

The current exchange rate at the start of your deposit term is $1 US dollar for 70 Indian Rupees. Therefore your $10,000 USD becomes 700,000 Indian Rupees.

After you’ve converted your currency, you place your 700k Rupees into your 5% certificate of deposit.

Ok, now during the 6 month period in which your CD was open, let’s assume the US dollar strengthened against the Rupee so that $1.00 USD now equalled 75 Indian Rupees.

Let’s see what you’re left with…

First, let’s multiply your starting position (700,000 Indian Rupees) by your guaranteed interest rate of 5%. So, 700,000 x 1.05 = 735,000 Indian Rupees – a gain of 35,000 Rupees.

Second, (and before we celebrate) let’s convert your Rupees back into US dollars so we can return those funds to your domestic bank account.

735,000/75 (75 Indian Rupees now equals $1 USD in our scenario) = $9,800 US dollars.

Ouch! You just lost $200 on your 6 month CD that paid an APY of 5.0%.

Final Thoughts

We know that it is easy to be frustrated with the current savings environment, but before you look outside the US for more favorable rates, be sure you fully understand the risks associated with foreign currencies CDs.

While it’s true that banks in other countries can offer more favorable savings rates than our own domestic banks, a strengthening US dollar against the currency you’re temporarily invested in can negate your earnings and even principal.

Retail investors should always consult with a financial advisor before embarking on their own in foreign currency trading or when opening a deposit. Having a strong understanding of complicated government policies and scrutinizing a country’s monetary policies are a must before opening a deposit in any foreign country.