Dedicated to Deposits: Deals, Data, and Discussion
iGObanking0.35%$1k-36 Month iGOCD
iGObanking0.35%$1k-60 Month iGOCD
iGObanking0.35%$1k-36 Month iGOIRA (Traditional,Roth)
iGObanking0.35%$1k-60 Month iGOIRA (Traditional,Roth)
Accounts mentioned in this post. Rates as of August 30, 2014

Two Top CD & IRA CD Rates at



Update 11/19/2011: The 5-year and 3-year CD rates have fallen. has increased its 3-year and 5-year CD rates by over one percentage point. The new rates are 2.25% APY for the 5-year CD and 1.70% APY for the 3-year CD. These are also available as IRA CDs. These rates are listed in the bank's rates page as of 11/14/2011.

If you have followed, you know that often makes big changes on some of its CD rates. Big rate hikes will eventually be followed with big rate cuts. One example was last year when's 2-year CD yield went from 1.75% to 2.25%, and then in about six weeks, it fell to 1.00%. So it's especially important not to let iGObanking CDs automatically renew. If you don't close the CD before the end of the grace period, you could be stuck with a very low rate.

Online Application

When I last contacted iGObanking's customer service, I was told that the CD rate is locked in at the time of the application date. Funding of the CD can be done via an ACH transfer from your current bank or by mailing a check. Several readers have complained about the online application. One commented that "signing up is a real pain -- endless questions and unforgiving software."

Early Withdrawal Penalty

The certificate of deposit details are described in the bank's disclosure page. According to this 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an original maturity of one year or greater: The fee we may impose will equal six months simple interest on the amount withdrawn subject to penalty.

In July updated its disclosure for the better. Before the change, the transaction limitations stated that "You may make withdrawals of principal from your account before maturity only if we agree at the time you request the withdrawal." This was removed soon after I pointed this out in a blog post. The transaction limitation section in the disclosure now states the following as of 11/14/2011:

You may not make deposits into your account before maturity. You can only withdraw interest credited to your account before maturity without penalty. You can withdraw interest anytime during the term of the certificate of deposit after it is credited to your account. IRS rules and regulations apply to all Individual Retirement Accounts.

New iPad CD Package is part of which offers CDs that include gifts. The downside is that the rates are typically lower than CDs. If the gift has a value high enough and the rate is high enough, the CD can be a good deal. That's the case now with the's special holiday package which offers a 2.00% APY 5-year CD with an iPad, an iPod touch, a Yamaha Desktop Audio System and Bose Headphones. A minimum deposit is $25,000, and the offer is scheduled to end on 11/28/2011. Refer to the's promotions page for the full details. I'll have more on this special in a future post. Savings Accounts

The savings account rate had remained competitive until last August when the rate plummeted. By late October, the rate had fallen to 0.65% where it stands now. It's hard to believe the yield was 5.30% back in 2006.

My previous iGObanking reviews: Overview is a division of Flushing Savings Bank, FSB, a New York bank with $4.32 billion in assets and 15 branches. The bank's overall health score at is 4 stars (out of 5) with a Texas Ratio of 25.21% (average) based on June 2011 data. It has been a FDIC member since 1943 (FDIC Certificate # 16049).

How These CD Rates Compare's 5-year CD rate matches US Bank's 59-month CD special with a 2.25% APY. That's the highest 5-year bank CD rate that's nationally available. I give iGObanking the advantage over US Bank due to its more friendly early withdrawal penalty.'s 3-year CD rate also exceeds the next best nationally available 3-year bank CD rate. That's 1.65% APY at Doral Bank Direct.

Higher rates are available at all-access credit unions. The best are 2.83% APY for a 5-year term and 2.12% APY for a 3-year term at Velocity Credit Union.

These rates are accurate as of 11/14/2011.

Searching for the Best CD Rates

To search for the best nationwide CD rates and the best CD rates in your state, please refer to the CD rates section of

Related Pages: iGObanking, CD rates, IRA rates

Related Posts

Comment #1 by pua posted on
There's a very important warning regarding GiftsForBanking.  The bank is required to include the value of your "gift" as "interest" when the bank reports your interest to the IRS in Form 1099-Int.  So then you have to pay income tax (federal and state) on that gift's value.  The trouble is that the bank sets the value of the "gift" VERY HIGH; and depending on your tax bracket, you might owe more in taxes than the "gift" is actually worth on the open market.  The bank gets to deduct the "value" of the "gift" as a business expense; so if it sets the gift value high enough, the bank actually gains money by giving you the "gift."  But you might be able to buy the gift for yourself at a lower price than the tax you will have to pay, because the bank had set the value so high.  This actually happened to me when I selected a hi-def flat screen TV which I could have bought at a store sale for about $350, but the bank reported its value as $1100 on my 1099-Int, with the result that I came out approximately even on the deal while the bank made a nice profit at the expense of taxpayers.  So the warning is this -- be sure to make the bank tell you how much the "gift" is being valued at for purposes of your 1099-Int; and then calculate how much your fed and state taxes will be on that value, and whether you could buy the "gift" for yourself for less money than the extra taxes you will owe.

Comment #2 by Anonymous posted on
I just want to point this out to everyone who reads this . I have done many online accounts and yes the on line process is horrible to open there accounts but there customer service is excellent . I had an issue with the transfer feature and not only did the customer service representative help me thought it she followed up with me to make sure i was able to complete my transation . so yes the beginning can be a turn off but once you get the account open you can talk with incredible customer service representatives .


Comment #3 by Anonymous posted on
My experiences at iGObanking range from excellent to awful.  One thing I do know, however, is that you've got to scramble to take advantage of their CD promotions.  They lowered their rates this morning.

Comment #4 by Anonymous posted on
to: pua

I spoke to a CSR and this is what I got from them, that the value proposition of is a competitive interest rate with the benefit of a valuable gift. The value of the gift as reported on the 1099-INT is for the fair market value of the selected gift(s), which includes the reasonable cost of shipping and handling.  Each gift-folio value is set and agreed upon between the bank and the vendor.    This is the amount reported on the 1099-INT, which follows IRS regulations.  And, this amount is disclosed at time of gift selection.


My past experience has been satisfying this is what keeps me as a customer at!