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CD Gift Program and Competitive CD Rates at GiftsforBanking.com


GiftsforBanking.com is a new reward program for CD buyers that offers a free gift with the purchase of an internet CD. The site's FAQ explains who's behind it:

GiftsforBanking, a value added program, is offered by iGObanking.com the online division of Flushing Savings Bank, FSB. Flushing Savings Bank, FSB is an FDIC insured institution established in 1929. GiftsforBanking CDs are FDIC insured to the maximum allowable limits.

GiftsforBanking.com offers three CD terms, and the rates are currently competitive as of 3/04/2010:

  • 2.05% APY 2-year CD
  • 2.49% APY 3-year CD
  • 3.15% APY 5-year CD

Minimum deposit is $5,000, and the free gift will depend on the size of your deposit. There are five balance tiers: $5K, $10K, $25K, $50K and $100K.

A couple of important things to note from FAQs:

  • They include the value of the gift on your 1099 (hopefully the reported value won't be inflated)
  • Early withdrawal penalty may include the value of the gift chosen, applicable sales tax and shipping fees

I've reviewed some of the gifts available for the different tiers. Here are a few that got my attention:

  • for 5 years and $25K: Sharp Aquos 40" LED LCD 1080p HDTV with 120 Hz Fin
  • for 5 years and $50K: Samsung 52" High Definition 240Hz 1080p
  • for 5 years and $100K: Canon Realis SX7 LCD Multimedia Projector

I did a quick check of the value of the Canon projector at Amazon, and you can get a new one for about $4K. So that would be about equal to an extra $800 for 5 years which comes out to be about an extra 0.80% for a $100K CD. Please leave a comment if you've found any good deals in the gifts they list.

Credit for this find goes to this FW thread.

I just did a new review of iGObanking.com's CDs last month when they were offering 3.55% APY on a 5-year CD. This has gone down to 3.25% in the last week. I would guess these Gift CDs would have similar features and a similar application process as the iGObanking.com's CDs.

My previous iGObanking reviews:

iGObanking.com is a division of Flushing Savings Bank, FSB, a New York bank with $4.1 billion in assets and 16 branches. Its ratings for safety and soundness are above average: 4 stars (excellent) at BauerFinancial and 3 stars (performing) at Bankrate.com. Both ratings are based on 9/30/09 data. It has been a FDIC member since 1943 (FDIC Certificate # 16049).

Related Pages: iGObanking, New York

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Anonymous   |     |   Comment #1
I don't understand the penalty for early withdrawal. Is it limited to the "gift"? And if yes, I would refuse the gift and open a 5 year CD with no penalty!!
Anonymous   |     |   Comment #2
Early withdrawal penalty will include the value of the gift chosen, applicable sales tax and shipping fees and 180 days of interest, according to a CSR.
Anonymous   |     |   Comment #4
#2 is correct, also the price of the gift is MSR and not a street or discount price or sale priice, which could be double than normal price. Something to think about it.
Anonymous   |     |   Comment #5
To #3, you can not adjust 1099 by yourself even in dispute of the value. You will get in deep trouble with IRS.
Anonymous   |     |   Comment #6
From the above comments, I think the 1099 will include shipping, handling and MSR price, which will make the gift twice as expensive as a sale price of the same item purchased locally. No thanks, I like to receive more interest than a gift.
Anonymous   |     |   Comment #8
This whole thing is made up so it will be heavy loss on a consumer if he/she decides to close the CD, humm, I will pass in this offer.
Anonymous   |     |   Comment #9
I would take ally 5 year CD with 60 days penalty instead.
Anony789 (anonymous)   |     |   Comment #11
to anom 7 r u kidding me?
Bill (anonymous)   |     |   Comment #12
You can get a balcony cabin for a twelve dat cruise with $1000 to spend onboard for opening a five year CD for $100,000. My math:


Value of cruise $5,575 (per RCL)

Interest lost     $2,500

The tax on the gift would approximate $1,800, but that would have been payable anyway on the interest lost. Even if you do deduct it, it still looks like a good deal to me.

But not available for IRAs. ;-(

Anonymous   |     |   Comment #13
Make that "almost half of it would have been payable anyway on the interest lost."




Anonymous   |     |   Comment #14
Sounds a lot like interest rates may be going up in the not too distant future if banks are using premiums to lure depositors.   I tried to do a little bit of research re history of gifts for certficates of deposit and the interest rate climate but was unsuccessful.   Anyone else try looking at history with any luck?

Right now,  I am mostly liquid in investments and waiting for better times!.
Anonymous   |     |   Comment #15
To Anonymous # 3,

Does this mean that I can adjust any Form 1099 because I believe the reported amounts are "inflated"?  How did you adjust it? Did you submit an amended Form 1099MISC?  Or did you file a depreciation schedule attachment?
Anonymous   |     |   Comment #16
How I did it was to simply report income in an amount different from the 1099 and keeping copies of lower sales prices from websites or print ads in case I was questioned. I don't recall whether I was or not, but I know I wasn't assessed any additional taxes. i was planning to do this again for 2009, but the 1099s weren't too much higher than the true price, so I just decided to go with them.

Anonymous   |     |   Comment #17
To Anonymous # 16,

What you did seems similar to why Form 1098-C was added a new form recently.  This is the car donation reporting form.  There were many people who reported "inflated" car values when they donated their cars and taking "unreasonable" deductions on their return.  You appear to have taken the opposite way of that type of tax reporting.  Your earlier difference appears to be around $250.  There is document matching amounts that are done (such as for W-2 reported amounts).  Some of that process is done years after a return is filed.  I guess it depends on whether they consider your different reported amount to warrent further examination.
Mister (anonymous)   |     |   Comment #18
another gimmick to entice fools - my opinion.     are they in the banking business or are they a big box store retailer ??    A good bank will be upfront and pay a good rate and forget all the bulls h i t  reward crap.   If I want a **** toaster - I'll go to a garage sale !!!!!!
Anonymous   |     |   Comment #19
According to CSR, you will get form 1099 in amount of $1600 for $25,000 to $49,999 / 5 Years CD
and 1099 in amount of $3200 for $50,000 to $99,999 / 5 Years CDs for the gift alone next year.

Not worth it to me paying tax on a gift and reporting it as cash received.
Anonymous   |     |   Comment #20
"I did a quick check of the value of the Canon projector at Amazon, and you can get a new one for about $4K"

Sure, but you will receive a 1099 for $7200 next year and pay tax on it and receive less interest for the next 5 years then at another bank. I don't see the reason to open a 5Y CD.
Anonymous   |     |   Comment #21
Somebody give you a gift and you are suppose to pay MSR price tag attached to it including the shipping and handling as 1099 income, I would stay away from such shady deals.
Anonymous   |     |   Comment #22
People, we are actually paying for the gift by not receiving the interest rate as it should be.

Just receiving a 0.5% less on a $100K we are losing $500 per year times 5 yeare equal $2500, there is you gift coming out of your pocket.
Anonymous   |     |   Comment #23
How about if you need your money for some reason or another, they will deep into your principal for the gift and 180 days of interest, you may actually pay for the gift twice and end with less money than when you opened the CD.
Anonymous   |     |   Comment #24
I think many are missing the point. You get the value of the gift right away- not strung out over years if it were just interest you banked. Yes, you pay tax on it right away as well; welcome to America.
Anonymous   |     |   Comment #25
Been looking into this offer and I have a question.  Normally with a CD, you can open a checking account and have the balance transferred to that upon maturity and then just write a check to get the money out with no loss of interest instead of waiting for them to mail you a check.  But iGoBanking's checking account is paperless, so there is no check you can write.  Their checking acct has limits on ACH withdrawl of $50K/month.  So if the CD is $100K, how do we get our money out?  Any advice would be appreciated!
Anonymous   |     |   Comment #26
Re: Post#25

For anyone with an iGo Checking/Savings account already...is it possible to initiate an ACH pull out of iGo for more than $50K in a single transaction using another bank like ING?
Anonymous   |     |   Comment #27
I'm trying to get gift values for 1099 purposes.  So far, there seems to be a huge miscommunication issue between the bank and the third party organization handling the gifts.  It sounds like there is a catalog that lists out these values.  At the moment, it is unclear who will provide, but once it is clarified, I will provide an updated post.
Anonymous   |     |   Comment #28
Yeah, I called the bank about 1099 values and they said to contact the fulfillment company. So I called that company and they said to call the bank. Go figure...  Would love to hear the answer if anyone finds it.
Anonymous   |     |   Comment #29
To Anonymous - #28, please read the answer of Anonymous - #19,
Anonymous   |     |   Comment #31
#29 - I'd also feel more comfortable having the 1099 values documented, as opposed to being told quickly to me on the phone.  Given how poorly coordinated this program is thus far, it wouldn't surprise me if information provided on the phone is incorrect or incomplete.
Anonymous   |     |   Comment #30
Thanks #29.  I was actually interested in a different amount/term than listed in #19.  But I found out that the ones to call is the bank.  Earlier today, they had confusion and redirected inquiries to the fulfillment company, but now they are supposed to have straightened that out and should have the info at the bank.
Anonymous   |     |   Comment #32
They told me the value of the gift
Anonymous   |     |   Comment #33
for 100K 3 yrs, they report $4400 for any gift in that category.  What I was looking at costs $3200 online.  Deal just got a bit less appealing...
Anonymous   |     |   Comment #34
Is it a really bad deal?

Anonymous   |     |   Comment #35
To Anonymous - #34,

It is a bad deal when you pay a tax on 1099 for twice as much on a gift worth twice as less and on top receiving less interest and if you close the CD prior to maturity, you will pay again for the gift from your principal including the shipping and handling charges and 180 days of interest.
Anonymous   |     |   Comment #36
Let say the gift's retail price is $2000, but you can pick it up on sale or at a discount outlet for $1000, but you will receive 1099 for $4000 at MSR price. Depend on your tax bracket, but you will actually pay IRS for the gift. If you close it before maturity, you will pay $4000 shipping handling 180 days of interest.

You will be killed dead on the spot.
Anonymous   |     |   Comment #37
Good point. We have to know the total on the 1099int before deciding.
Anonymous   |     |   Comment #38
Why they call it a gift, when we pay for it in 1nflated 1099 and less interest and on top of that severe early closing penalty. No thanks.
Anonymous   |     |   Comment #39
The interest rates went down a lot since yesterday, so it clearly isn't worth it to buy these CDs.  I know the 2 year CD was at something like 2.15%.  Now these are current rates.

2 year @ 1.40%* APY plus FREE gift
3 year @ 2.00%* APY
plus FREE gift
5 year @ 2.95%* APY
plus FREE gift
AtHomeDad (anonymous)   |     |   Comment #40
Rate are down:

2 year @ 1.40%* APY plus FREE gift
3 year @ 2.00%* APY
plus FREE gift
5 year @ 2.95%* APY
plus FREE gift