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Ken Tumin founded the Bank Deals Blog in 2005 and has been passionately covering the best deposit deals ever since. He is frequently referenced by The New York Times, The Wall Street Journal, and other publications as a top expert, but he is first and foremost a fellow deal seeker and member of the wonderful community of savers that frequents DepositAccounts.

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DETAILSINSTITUTIONAPYMINMAXPRODUCT
GiftsforBanking.com0.15%$25k-3 Year CD Gifts
GiftsforBanking.com0.10%$25k-2 Year CD Gifts
Accounts mentioned in this post. Rates as of July 22, 2014

Top CD Rates and a Free Gift at GiftsforBanking.com

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GiftsforBanking.com

As I mentioned last week iGObanking.com is offering a very competitive rate of 2.25% APY on its 2- and 3-year CDs. In addition, iGObanking.com's CD gift site, GiftsforBanking.com is offering a similar competitive CD rate which is just a little bit lower, 2.00% APY for 2- and 3-year terms. These rates are still listed at the bank's websites as of 10/28/2010.

Even the lower rate at GiftsforBanking.com is significantly higher than the next best 2-year internet CD rate (1.79% APY at Bank of Internet USA).

Is the gift that you receive at GiftsforBanking.com worth the 25 basis points?

I reviewed GiftsforBanking.com in this March 2010 post. Here are some important details. Minimum deposit is $5,000, and the free gift will depend on the term and size of your deposit. There are five balance tiers: $5K, $10K, $25K, $50K and $100K.

Some important details mentioned in the small print on GiftsforBanking.com's front page include:

  • A 1099-INT statement for the gift amount (including applicable sales tax and delivery costs) will be issued.
  • Additional expenses may be incurred for delivery of gifts outside the Tri-State area.

The main downside with receiving gifts from a bank instead of cash is that the value reported to the IRS may be more than the gift is really worth.

Another downside to the gift in this case is that it makes the early withdrawal penalty more costly. Here is what is stated in the bank's disclosure:

If your account has an original maturity of one year or greater:

* The fee we may impose will equal six months simple interest on the amount withdrawn subject to penalty.
* Plus the retail value of the gift received, applicable sales tax and shipping fees.

So be sure to consider the above downsides before choosing GiftsforBanking.com.

The benefit of going with GiftsforBanking.com instead of iGObanking.com is that the gift will be more valuable to you than the extra 25 basis points. For a 2-year CD with a $10K deposit, the 25 basis points equal about $50 over two years.

I reviewed the gifts available for a 2-year $10K CD. Here are some of the gifts the site listed:

  • TOMTOM Automobile portable navigator
  • 7-inch portable digital TV/DVD player
  • Samsonite Silhouette 11 Softside 22-inch Upright Spin
  • Dewalt 18V Cordless Wet/Dry Portable Vac
  • Nikon CoolPix S3000 digital camera
  • Ironman Triathlon Bodylink System
  • 16GB Flash Portable Media Player
  • Sony 10.1 MP Cybershot digital camera

And here are some of the gifts that the site listed for a 2-year $100K CD:

  • LG 47-inch LCD Bose 3-2-1 GS Home Entertainment Set
  • Royal Carribean 6&7 Night Bronz Certificate
  • Cannon EOS 7D digital camera
  • BowFlex Revolution FT Home Gym
  • 3 Night Ritz Carlton Royal Prestige Suite Award
  • Samsung 46-inch LED High-Definition TV with 1080p resolution
  • Hitachi Handyman Project Center Tool Package
  • Callaway Diablo Edge Golf Set
  • Poulan 18.5 HP Lawn Tractor
  • 5 Night Marriott Premier Stay and Spa Package
  • iPad Urban Electronics Package
  • Endurance Elite Folding Treadmill

According to the instructions, you'll receive a personalized link to a catalog containing all the gifts that are shown at GiftsforBanking.com after you have opened and funded your account. You will be requested to choose your gift and fill out the required shipping information.

I would guess these Gift CDs have similar features and a similar application process as the iGObanking.com's CDs. Please refer to my iGObanking.com CD review that I posted last week.

iGObanking.com is a division of Flushing Savings Bank, FSB, a New York bank with $4.26 billion in assets and 16 branches. The bank's overall health score at DepositAccounts.com is 3 out of 5 with a Texas Ratio of 25.99% (above average) based on 6/30/2010 data. It has been a FDIC member since 1943 (FDIC Certificate # 16049).

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  Tags: CD rates, GiftsforBanking.com

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Comments
12 comments.
Comment #1 by Anonymous posted on
Anonymous
Spoke to CSR about value of gifts reported to IRS.  Claims that gifts associated with 2 year/10k CD will be valued at $225.

4
Comment #2 by Anonymous posted on
Anonymous
IncomeTax sales tax shipping lost interest > $100

Most of those gifts can be bought for less then $100.

Not worth it.

11
Comment #3 by Bozo (anonymous) posted on
Bozo
Who would have thought, back in late 2006, that we would be describing a 2 year CD at 2.25% as competitive? I ask myself, competitive with what, the inflation that "they" claim does not exist?

The erudite idiots calculating inflation (at or below zero, so they claim) who managed to whack seniors for another year on the Social Security COLA really ought to go out of their shells to the grocery store from time to time. Or pay utility bills. Or fill up their gas tank. 

Oh, well, I did receive a rather handsome return going long in 2006 in my CD ladder, so I guess I can't complain (too much).

Sadly, those returns are starting to crater as my CDs mature.

Oh, well, look on the bright side. Next year I'll be in the lowest marginal tax bracket ever (for me).

 

Bozo

11
Comment #4 by Bozo (anonymous) posted on
Bozo
More to my recent post, that assumes the lowest tier tax rate doesn't go back to 15% (as opposed to 10%), in which case my taxes would go up a tad (actually, more than a tad).

I so love uncertainty. It gives new meaning to the concept of "how the *%$& do I calculate my estimated taxes?"

Too much fun.

Bozo

10
Comment #5 by Anonymous posted on
Anonymous
I opened a CD and it's an involved process.  First you complete the on-line app, then you have to snail mail them a utility bill or some other bill/statement that shows your mailing address.  Cell phone bills don't work.  Then they make two small deposits and an offsetting withdrawal from the account that you will be using to fund the CD and send you an email that this is complete.  Then you access your account to get the exact figures which must be entered into your "incomplete" app after you log on to their site.  Whew!  

6
Comment #6 by Anonymous posted on
Anonymous
SS recipients have no room to gripe on the COLA. They got a large increase for last year when energy prices were high, then should have gotten a decrease for this year when thing went back down but instead got to keep the same inflated payout. The gov't says there has been inflation but still doesn't exceed what it was before so seniors get an inflated payout for next year too. If they're suffering it's due to their bad retirement planning, not the lack of a COLA increase.

13
Comment #7 by Anonymous posted on
Anonymous
I'm with you BOZO, you got it........

 

why is there only a thumbe UP or report Spam option? what about a thumbs down with a comment that isn't spam,  but you don't aree with?

7
Comment #8 by Toby (anonymous) posted on
Toby
The gift for Banking CD also states "By participating in this program you are consenting to the bank releasing your email address to a third party service provider."  I did open an account but created a secondary e-mail account. I get enough garbage mail already.

3
Comment #9 by Gaelicwench posted on
Gaelicwench
To Anonymous #6, I'm afraid you get a "thumbs down" from me for your lack of knowledge regarding inflation.

When the Feds calculate inflation, they do not regard the two most important and constantly rising needs that seniors use on a regular basis. Prescription medications and food. Why is that? The other is energy costs. Why should seniors be required to pick and choose because their SS checks aren't allowed to keep up with the cost of goods constantly on the rise?

When I was in the AF long ago, and then married into it, my then active-duty hubby commented that military pay was always behind on rising inflation (redundant, I know). We were never given an increase, or it was a constant fight from Congress to get the increase high enough to get decently close to the rise of increased costs of goods and services.

Anyways, I digress. A large increase made only occasionally does not a comfort of living make. For anyone!!

6
Comment #10 by Anonymous posted on
Anonymous
U got it too Gaelicwench

Desn't it seem coincidental in a way that the time most boomer's are retiring that this is the time that there's NO inflation, per the manipulated CPI, so hence NO COLA?

While Uncle Ben at the fed keeps rates at 0 for an extended period which also effects retirees that actually saved any money to use as a supplement to SS or other retirement.. All to keep the market up by trying to force those with any available funds into it, Which makes the Booya boy on CNBC smile

I think all this crap was calculated out back when..........because it was known the "too big to fail" had already broke the country.  (btw:27 years Army )

3