EverBank’s mission is to create a new way of banking. But not just new – we work hard to bring something better to our clients, particularly when it comes to long-term financial strategies. One of our most interesting areas of innovation is unique investing opportunities via foreign currencies and precious metals. There are many ways to use these to lower your overall portfolio risk and venture into non-correlated asset classes — those that may operate largely independently of the ups and downs of conventional stock and bond markets.
Bear in mind that foreign currencies and precious metals carry inherent risk. Although all of our currency-related banking products come with FDIC insurance, that insurance doesn’t protect the principal from changes in the values of those underlying assets. Of course, some of our currencies come with a yield, which acts as a hedge against those price fluctuations. And our Metals Select® precious metal accounts are NOT FDIC insured and will also fluctuate in value with the price of precious metals.
One of our more innovative products comes from our World Markets® division: the WorldCurrency Access® deposit accounts and WorldCurency® CDs. These easy-to-understand accounts give you access to foreign currency markets, with the support of our Foreign Currency specialists who can answer questions about the national economies issuing the currencies. WorldCurrency® CDs offer access to 18 different foreign currencies. They range from the well-known currencies of all of the major economies to more aggressive developing country currencies such as the Chinese renminbi. Access deposit accounts offer daily liquidity and a small minimum deposit of just $2,500. Certain currencies are only offered in a non-deliverable format, and Access accounts are money market deposit accounts, meaning transaction limitations apply.
Many of the WorldCurrency CDs offer a yield based on the interest rates paid in the country issuing the currency. This interest can help offset some of the downside risk of price fluctuations. These CDs are available in short-term maturities, typically between 3- and 12-months and most come with a minimum deposit of $10,000.
If you’re just entering into the currency market for the first time, you shouldn’t have to choose one or two currencies. With that in mind, we have a variety of WorldCurrency® CD Baskets containing 3 to 6 individual currency CDs that are themed to specific regional or economic interests. All these CDs come with a minimum $20,000 initial deposit and in 3- and 6-month terms. All are backed by FDIC insurance with the provisos mentioned earlier.
Another of the more innovative product lines offered through EverBank World Markets is the MarketSafe® CD. While these U.S. dollar-denominated CDs don’t pay an annual percentage yield or periodic rate of interest, they are FDIC insured and are also guaranteed against principal loss. The performance of each CD is tied to a certain index, like foreign currencies or commodities, and they are all free of any associated principal risk. Past MarketSafe CDs have been tied to the price of gold, emerging market currencies, and even Japanese real estate. We regularly create new MarketSafe CDs, so you’ll need to keep an eye out for news of our latest offering.
These CDs typically carry a longer term, typically from 3 to 5 years, and they generally cannot be closed prior to maturity. The low minimum deposit of just $1,500 and protection of principal make these investments a great way for clients to venture into some more volatile markets without the risks usually associated with them. And these products, along with all of the WorldCurrency accounts, are IRA eligible.
We are also one of the only banks in the U.S. to offer non-FDIC insured metals accounts. We offer two ways to hold metals in your portfolios: unallocated and allocated accounts.
In an unallocated account, rather than buying actual coins or bars, your metals investment is pooled with that of other customers. This gives your portfolio the benefits of precious metals ownership, but without the added costs often associated with buying individual coins or bars. With pooled metals, there are no storage, delivery or annual account fees. Should you ever wish to receive actual metal, you can convert your account into an allocated account for a fee.
We also offer a Metals Automatic Purchase Plan for the unallocated metals account that allows you to take advantage of dollar-cost averaging to grow your metals holdings month by month. The Automatic Purchase Plan starts at $100 monthly and are funded through automatic draws from a companion cash management account at EverBank.
With allocated accounts, you own specific, audited metal in your own name, including gold, silver, platinum and palladium. You can invest in a variety of coins or bars. Storage fees apply.
Finally, our affiliate, EverTrade Direct Brokerage, Inc., offers unique global investment options, including a full range of global and domestic trading opportunities, with online access to all major U.S. exchanges and OTC markets, over 25 foreign equity exchanges (some broker assisted), a wide variety of mutual fund families, equity options and Exchange Traded Funds (EFTs) as well as foreign/domestic bonds and equities. You can even trade in the local currency. EverTrade customers can access easy-to-use online trading tools or work directly with a broker. EverTrade® brokerage accounts are not FDIC insured and are not deposits of EverBank.
These products could be a good option for people right here in the U.S. who want to benefit from offshore without going offshore. For more details and important disclosures, please visit our website: https://www.everbank.com/investing?referID=11682
EverBank is an FDIC insured savings bank. EverTrade Direct Brokerage, Inc. is a subsidiary of EverBank. Investment products and services are provided by EverTrade Direct Brokerage, Inc. and:
Are Not FDIC Insured
Are Not Bank or Government Guaranteed
Are Not Deposits of EverBank
May Lose Value
EverTrade Direct Brokerage, Inc. is a registered SEC broker/dealer and FINRA/SIPC member - www.finra.org, www.sipc.org. Foreign investing involves special risks such as currency, economic, political and social instability in addition to varying accounting and disclosure standards. Be sure you understand these risks prior to investing.