I also have been studying Everbank, their rates are obviously attractive. What is your opinion of that institutions financial stability.... there is plenty to like about 2.5% in a savings account. Do you place ING or Ally Bank in the same grouping with Everbank? By the way, I also have had enough of SHY as well. The NAV moves have devoured the yield.
SHY continues dropping as recovery looks more likely and people shift from treasuries to equities. Today's drop is indicative. I too have seen the paltry yield almost wiped out by the drop in market price. I will hold on through today to qualify for the next dividend and plan to cut my position way back. I may now start averaging in to a high dividend stock fund like ADVDX. // I was unaware of Ally Bank but will take a look. Everbank seems sound but frankly I am relying on the FDIC insurance for any funds placed there. They have a 3-month teaser rate of 3% for deposits up to $50k. After 3 months, the yield drops to 1.8%. I will then look for other opportunities.