GiftsforBanking.com’s (GfB) 3- and 5-year CD Gifts are another two NTS (New To Summary) CDs that were added to this week’s CD Rates Summary. The 3-year’s 2.50% APY has been in effect since late March, while the 5-year has been offering a 2.75% APY for nearly a year. The minimum opening deposit is $25k, with no stated balance cap.
For those unfamiliar with GfB, you can actually receive a gift when opening a CD, and we’re not talking a toaster. GfB has at least 15 gifts to choose from for each of three deposit levels: $25k+, $50k+, and $100k+. A few of the gifts available for a 3-year CD with a $25k-$49k deposit include,
One downside to the gift program is that the Bank determines the gift’s value that will be used when issuing the 1099-INT. Chances are the reported value is likely to be higher than what you would pay, had you purchased it on your own. A higher value reported on the 1099-INT could increase your tax liability. Before you decide to accept a gift, learn the value GiftsforBanking.com will be reporting, allowing you to make an informed decision.
GiB’s website has an FAQs page that provides a lot of information, including the procedure for selecting and receiving a gift.
As stated on the Terms and Conditions page, the Early Withdrawal Penalty (EWP) reads as follows:
If your account has an original maturity between three years and less than seven years:
The fee we may impose will equal one year’s simple interest on the amount withdrawn subject to penalty. Plus the retail value of the gift received, applicable sales tax and shipping fees.
The retail value of the gift added to a year's simple interest could result in a hefty EWP. For example, a Sony 75-inch 4k Ultra HDTV offered for a $100k+ deposit is listed on Amazon for $2,498. Sometimes a free gift carries a hidden cost. Caveat emptor.
GiftsforBanking.com is a special value added program offered by iGObanking.com, which is an online division of New York-based Flushing Bank.
Opening a CD must be done through an online application on iGObanking.com’s website.
You are now being transferred to the GiftsforBanking account application page within the iGObanking.com® site. GiftsforBanking.com is a special value added program offered by iGObanking.com. iGObanking.com is an online division of Flushing Bank, a New York-based FDIC insured financial institution established in 1929.
As one of the online divisions of Flushing Bank, GiftsforBanking.com operates under the Bank’s FDIC Certificate and shares its financial history.
GiftsforBanking.com/Flushing Bank has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 2.44% (excellent) based on June 30, 2019 data. In the past year, the Bank has increased its total deposits by $421.02 million, an excellent annual growth rate of 9.86%. Please refer to our financial overview of Flushing Bank (FDIC Certificate # 58564) for more details.
Flushing Bank was established in 1929 as the Flushing Savings Bank in the Borough of Queens, New York. After 80 years of growth in size and scope, the Bank was renamed in 2010. With assets in excess of $6.9 billion, it is New York State’s 15th largest bank and the 177th largest bank in the nation.
How the CDs Compare
When compared to similar length-of-term CDs tracked by DepositAccounts.com that are available nationwide and require a minimum deposit of at least $20k, GiftsforBanking.com’s 5-year CD Gifts APY currently ranks fourth.
When compared to similar length-of-term CDs tracked by DepositAccounts.com that are available nationwide and require a minimum deposit of at least $20k, GiftsforBanking.com’s 3-year CD Gifts APY currently ranks third.
The above rates are accurate as of 9/13/2019.
To look for the best nationwide CD rates and the best CD rates in your state, please refer to our CD Rates Table page.