Review Of The Giftsforbanking.com Summer CD Promotion

Here's their latest summer promotion which ends at the end of day 6/14/11:

2.00% APY 5-year CD $50K minimum deposit

Receive their "Classic Travel Collection" which includes:

A three night trip for two to Las Vegas at the Luxor Hotel and Casino
OR choose a three night trip to one of ten other destinations including Miami, Disneyland, Vail Park, New Orleans, New York City, San Francisco, Acapulco, Cancun, Washington, D.C. and a Bahamas cruise. No blackout dates apply.

All trips include airfare, breakfast daily and room taxes. Varying by destination, reward may also include dinners, show tickets, park passes and city tours.

The best 5-year CD rate that you can get is about 3.00% APY. The difference over 5 years for a $50K balance is about $2,500. The trip is definitely not worth that much.

One downside with the gift is that the value the bank reports to the IRS may be more than it's really worth. Also, if you withdraw early, the penalty includes the value of the gift.

I have more discussion on the pros and cons of these CDs in my old GiftsforBanking.com review.