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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.

Featured 2-Year CD Rates

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Featured Accounts
DETAILSINSTITUTIONAPYMINMAXPRODUCT
iGObanking0.35%$1k-24 Month iGOCD
iGObanking0.35%$1k-36 Month iGOCD
iGObanking0.35%$1k-48 Month iGOCD
iGObanking0.35%$1k-60 Month iGOCD
iGObanking0.15%$1k-18 Month iGOCD
Accounts mentioned in this post. Rates as of July 23, 2014

CD Rate Changes at iGObanking.com & iPad Gift Package at GiftsforBanking.com

POSTED ON BY

iGObanking

iGObanking.com made some CD rate changes. Unfortunately, the 2-year CD rate has gone down from 2.25% to 2.00% APY. On the plus side, the 4-year and 5-year CD rates have gone up. Here's a list of the new and old yields as listed at iGObanking.com's rates page as of 11/10/2010:

  • 1.50% APY 18-month CD
  • 2.00% APY 2-year CD (was 2.25%)
  • 2.25% APY 3-year CD
  • 2.55% APY 4-year CD (was 1.00%)
  • 2.70% APY 5-year CD (was 2.50%)

Even with the 2-year CD rate cut, the 2.00% remains on top of our nationwide 2-year CD rate list. It's 20 basis points above the second best rate, 1.80% APY at Alliant Credit Union as of 11/10/2010. The 4-year CD rate is also on top of our nationwide 4-year CD rate list. It's 3 basis points above the second best rate, 2.52% APY at Melrose Credit Union as of 11/10/2010.

I have more details about these CDs in my iGObanking.com CD review from last month when they first offered the special 2-year rate.

iPad Gift Package at GiftsforBanking.com

iGObanking.com's CD gift site, GiftsforBanking.com typically has CD rates about 25 basis points under those at iGObanking.com. As a replacement for the lower rate, they offer gifts which vary based on deposit term and size. However, as of the morning of 11/10/2010, GiftsforBanking.com's 2-year CD rate is 2.00% APY. This rate may not last long.

Another extra perk that I just noticed at GiftsforBanking.com is a special iPad gift package which appears like a good deal if you have at least $25,000. Here are the details provided on GiftsforBanking.com's holiday page as of 11/20/2010:

Open a 2 year CD (minimum of $50,000) or a 3 year CD (minimum of $25,000) account now and you can receive the iPad Ultimate Camera Bundle. The iPad is the perfect way to reward yourself or someone on your holiday gift list this season. The iPad Ultimate Camera Bundle includes:
* 32GB Apple iPad
* Apple iPad Camera Connection Kit
* Samsung 12.2 Megapixel Dual LCD Digital Camera
* ful Overton Backpack

According to GiftsforBanking.com, the offer ends 11/29/2010. There are some downsides when gifts are included with interest on CDs. I described those downsides in my last GiftsforBanking.com review.

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).

Other Ways to Get a free iPad

If you're interested in an Apple iPad, don't forget our iPad giveaway. It's free and easy to enter. The sweepstakes ends on November 18th.

Searching for the Best CD and IRA CD Rates

To search for the best nationwide rates and the best rates in your state, please refer to the following sections of DepositAccounts.com:

  Tags: CD rates, IRA rates, iGObanking

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Comments
17 comments.
Comment #1 by Anonymous posted on
Anonymous
Does anyone know how long it takes for the bank to send the gift once you open the CD?

1
Comment #2 by Anonymous posted on
Anonymous
I'm reading that some have gotten gifts in 1 week. Opening the CD is the hard part. I have not opened one.

1
Comment #3 by Anonymous posted on
Anonymous
Ken, so a person might pay in taxes up to one third the price of the goods, depending on tax bracket? I know it depends on alot of variables. If that is true, it doesn't seem a bad deal to get it at nearly 66% off.

2
Comment #4 by Anonymous posted on
Anonymous
It takes a good two weeks to open a CD with them. 

2
Comment #5 by Anonymous posted on
Anonymous
I wrote to ask what value will be reported for tax purposes.  That's the key, Anonymous #3.  I will post if they respond.  It's not easy to guess because the bundle includes more than just the iPad. 

1
Comment #6 by Anonymous posted on
Anonymous
The service from iGo is quite bad, at least that was my experience.  I tried opening a joint account with my partner.  Several days after applying I had to call to find out the status.  They said they need our ID's sent in.  I sent them drivers licenses, bank statements and utility bills.  They eventually approved me but refused my partner because his drivers license address didn't match our current address.  When I spoke to them they asked me why and I said because we moved.  Then they proceeded to say "Well aren't you going to get a new license"? I told them CA doesn't issue a new license when you move, you just notify the DMV of the new address.  So this was the basis of their denial.  And one wonders why the banking industry is a wreck? 

4
Comment #7 by Anonymous posted on
Anonymous
Anonymous #6 reminded me of the extremely serious problem I had with them a few years ago.  I had applied for a long term CD with a promo of a new laptop with all the bells and whistles.  They lost all of my information that was fedexed to them to open the account.  The package contained more than enough personal information for anyone to steal my identity.  It took many weeks to rectify the problem - really there was no solution as they never found my package, except that I finally did receive the expensive laptop for free that was part of the promotion at the time.  Of course after the snafu I did not bother to try again to open the original account so it turned out to be a good deal even though I had to carefully monitor my credit reports for the next few years!

1
Comment #8 by Anonymous posted on
Anonymous
I've had several dealings with iGo over the past couple of years and have always had a good experience. 

2
Comment #9 by John (anonymous) posted on
John
To Anon #5 - I called and was told the value is $1,100 (assuming you're talking about the iPad/Camera bundle). 

My math says this is about right - adding up from different sites that have these for sale. You might save a little if you risk buying from less reputable online places, but I'd rather be safe. 

4
Comment #10 by Anonymous posted on
Anonymous
The gifts come from another place (banks don’t stock iPads!). I was told it would normally take 2 or 3 weeks to arrive after the CD is opened. 

1
Comment #11 by Anonymous 5 (anonymous) posted on
Anonymous 5
Thanks, John!

1
Comment #12 by Anonymous in CA (anonymous) posted on
Anonymous in CA
I applied for the 3 yr. account, but after reading John's comment I don't think I will fund it.

If the CSR John spoke with is correct and they report the iPad/camera bundle at $1100 then the "gift" will effectively cost me --a median wage earner-- $415 in increased fed CA income taxes.  It might still be an interesting deal for those in very low tax situations or someone who really wants the other stuff in the bundle,  but I think I'll keep it simple and buy an iPad outright after April when the $499 version is expected to get a boost to 32G.

2% is not a bad interest rate. And I should say that the online application went smoothly in my case, in spite of their bizarre multiple choice questions supposedly based on my credit history.  In the end, though, the gift is worth $85 to me, which pales beside the $250 interest and $1100 gift value they state they will deduct should I need to break the CD early.

Thanks John, it helps to have a real number to work with.

2
Comment #13 by Anonymous 5 (anonymous) posted on
Anonymous 5
Anonymous in CA:  I'm going through the same calculation myself, but it seems to me that when you compare this deal with putting your money somewhere else, you should disregard the tax burden associated with the iPad value itself, since you are planning to buy that anyway, and will have to use after-tax dollars to do so.  The real cost of the deal is the tax on the portions of the bundle that you don't want; this is like the account paying out money that just gets burned up rather than going into your pocket.  The portion that goes to the actual value of the iPad you would buy anyway just saves you the step of going and ordering one, and the tax you pay as a result is just what you'd always have to pay to earn enough money to buy an iPad.  So if you would wait and buy the iPad for $499 in any case, and if the CSR John spoke with gave the accurate valuable of $1100 for the bundle, then the tax burden on the $601 of unwanted goods seems like the relevant figure to consider.  Of course you do have to pay tax on the full value, no question, but if you were to put your money in a different account and just earned interest, and then used the money to buy the iPad, you'd be in the same boat taxwise (with an iPad, and with the tax burden associated with the dollars you earned to get it).  It is the forced purchase of other stuff at the price of the tax that should be the real concern.  Or at least that's how I'm thinking about it.  But I may be missing something. 

4
Comment #14 by Anonymous posted on
Anonymous
it seems like the package that have ipod 32g, $500 bestbuy giftcard, and bose headset is a better deal? There are less room to inflate MSRP (only bose headset) and can use $500 giftcard to buy new ipad when 2nd gen come out?

3
Comment #16 by Anonymous posted on
Anonymous
The rates have dropped on Nov. 30, 2010.  Here is what they have now:

2 year @ 0.75% APY* plus gift
3 year @ 1.05% APY* plus gift
5 year @ 1.75% APY* plus gift

1
Comment #17 by Anonymous posted on
Anonymous
Not sure what happened to all those people who had issue opening the CD, but I opened the CD on the last day of promotion and everything went smoothly as expected. Loving the free ipod!

2