EverBank’s 3-Year Petrol Currency Marketsafe CD: A Different View on A Dirty Pool

We’ve written before, multiple times, about EverBank’s currency CD program. We addressed these products most recently here, having first addressed them here.

The EverBank 3-Year Petrol Currency Marketsafe CD - like the earlier EverBank products on which it is based - is not a CDs at all. A CD is a time deposit guaranteed to compensate the depositor with a certain rate of return as consideration for keeping their money with the issuing bank for a certain period of time. EverBank's so-called CD is an investment product designed to exploit unsuspecting people without any currency knowledge or wherewithal and to get them into a product that is more likely than not to deliver no return whatsoever over a long period of time.

When EverBank today announced this 3-Year Petrol Currency Marketsafe CD today, they produce a page with all sorts of wishy-washy rationale on why customers should be desperate to invest in a vague product involving the Canadian dollar, the Mexican peso, the Russian ruble and the Brazilian real as a way to take advantage of higher oil prices. Beyond the wishy-washy rationale, the page and the video on the page represent a prima facie violation of the Securities and Exchange Act of 1933.

So, let’s make this simple:

If you believe oil prices are going to go up, you can buy Exxon, Chevron, or another US oil company that produces a dividend.
If you want to take on more risk associated with Canada, Mexico or Brazil, you can buy Canadian oil trusts, Pemex or Petrobras.
If you must own Canadian dollars, Mexican pesos or Brazilian real, you can open an interest bearing foreign currency account with Citibank.
If you must own Russian rubles, you should get your head examined.
If you want your money to be tied up with EverBank for the next three years, you should check BestCashCow’s 3-year CD rates and see how EverBank compares with others.

Under no circumstances should you invest in EverBank's 3-Year Petrol Currency Marketsafe CD.

Today's Highest Online CD Rates

Bank	Product Term	Interest Rate (APY)
TotalDirect, a division of City National Bank of Florida	1-Year	4.50% APY with $25,000 minimum
Canadian Imperial Bank USA	1-Year	4.43% APY with $1,000 minimum
First Internet Bank of Indiana	1-Year	4.42% APY with $1,000 minimum
Navy Federal Credit Union	3-Year	4.05% APY with $100,000 minimum
Merrick Bank	3-Year	4.00% APY with $25,000 minimum
Colorado Federal Savings Bank	3-Year	3.95% APY with $5,000 minimum
Synchrony Bank	5-Year	4.00% APY with no minimum
Merrick Bank	5-Year	3.95% APY with $25,000 minimum
M.Y. Safra Bank	5-Year	3.90% APY with $500 minimum

Bank

Product Term

Interest Rate (APY)

TotalDirect, a division of City National Bank of Florida

1-Year

4.50% APY with $25,000 minimum

Canadian Imperial Bank USA

1-Year

4.43% APY with $1,000 minimum

First Internet Bank of Indiana

1-Year

4.42% APY with $1,000 minimum

Navy Federal Credit Union

3-Year

4.05% APY with $100,000 minimum

Merrick Bank

3-Year

4.00% APY with $25,000 minimum

Colorado Federal Savings Bank

3-Year

3.95% APY with $5,000 minimum

Synchrony Bank

5-Year

4.00% APY with no minimum

Merrick Bank

5-Year

3.95% APY with $25,000 minimum

M.Y. Safra Bank

5-Year

3.90% APY with $500 minimum

Comments

Jefferson

March 26, 2018

This is putting it mildly. The video is that of a snake-oil salesman. I've downloaded it to show in future years in a law school class that I teach on US Securities regulation.

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thank you

August 13, 2018

Just a quick thank you. I had considered this offering, then read and bookmarked this article. With all of these currencies declining versus the dollar so big in the last two days, this this is bound to be a loser for all three years. I just wanted to come back and say thank you.

Is this review helpful? Yes:0 / No: 0