GiftsforBanking.com (GfB) is currently offering 1.85% APY on its 24-month CD Gifts, making it the top-rated nationally available 2-year CD offered by a bank. The minimum 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 18 gifts to choose from for each of three deposit levels: $25k+, $50k+, and $100k+. A few of the gifts available for 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, if 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.
GfB’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between one year and less than three years: The fee we may impose will equal six months simple interest on the amount withdrawn subject to penalty.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.
The retail value of the gift added to six months simple interest could result in a hefty EWP. For example, a Tag Heuer Aquaracer Men’s Watch offered for a $100k+ deposit is listed on Amazon for $1,546. Sometimes a free gift carries a hidden cost. Caveat emptor.
Thanks to both Ally6770 and ChasR for their timely Forum posts about GiftsforBanking.com
GiftsforBanking.com is a special value added program offered by iGObanking.com, which is an online division of Flushing Bank.
Opening a CD must be done through an online application on iGObanking.com’s website.
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 2.91% (excellent) based on March 31, 2017 data. In the past year, the Bank has increased its total deposits by $142.1 million, an excellent annual growth rate of 4.5%. 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 $6.2 billion, it is New York State’s 19th largest bank and the 180th largest bank in the nation.
How the CD Compares
When compared to the 203 similar length-of-term CDs tracked by DepositAccounts.com that are available nationwide, GiftsforBanking.com’s 2-year CD Gifts APY currently ranks second, regardless of minimum deposit.
The above rates are accurate as of 8/22/2017.