CD At A Quick Glance:
- Maximum Bonus Amount: Free gift, details below
- APY: 1.85%
- Deposit Length: 24 months
- Minimum deposit required: $25,000
- Maximum deposit allowed: $250,000
- Hard pull: Unknown but unlikely for a CD
- Credit card funding: UnknownÂ
- Insurance:Â FDIC
The Offer
Giftsforbanking.com is FDIC insured and an online arm of Flushing Bank. Here’s a new CD offer from the bank:
- Get 1.85% APY on a 2-year CD
- Also get to choose from various free gift option, the greater the CD amount the larger the gift
- See gifts for $25,000 CD here (toggle between pages to see all options);Â one example is an Apple Watch along with $100 iTunes gift card
- See gifts for $50,000 CD here (toggle between pages to see all options); one example is $500 in Amazon gift cards and a Bose SoundTouch 30 Series III Wireless Music System
- See gifts for $100,000 CD here (toggle between pages to see all options); one example is a Macbook
As you’ll see from the list of gifts, these are substantial values, not knickknacks.
The Fine Print
- CDs auto-renew so be sure to withdraw the funds at the end of the 2 years if you don’t want that
- No monthly or opening fees
- Early withdrawal penalties will equal six months simple interest on the amount withdrawn subject to penalty.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.
- You’ll have 12 months to claim your free gift
- 1099INT will be issued on the interest earnings and on the value of the gift
Our Verdict
From a quick look, it seems like the free gift is worth roughly 1% to 2% of the CD amount. The rate of the CD itself is on par with the best CD offers available, and this added gift could push the value up significantly. If you can get 2% out of the free gift, that would be an annualized 1% bonus on the CD rate, for a total APY rate of 2.85%.
An important thing to keep in mind is that the bank will issue a 1099 you for the value of the gift, so consider this added bonus like the earning on the CD itself which are 1099ed and taxable, not like an added bonus. If it’s an item you’d have been buying anyway, this can be a great deal. Otherwise, remember you’ll be paying a percentage of the cost of the item in the form of taxes.
CDs aren’t for everyone, especially a two-year CD which is a bit of a commitment given the hefty early withdrawal penalty (. If you’re in the market for one, this is something to consider. Check out other high-yield savings options in this post. Let us know if you think we should add CD deals over there.
Make sure you don’t sign up for anything but the two year CD as the rates drop significantly:
- 2 year @ 1.85% APY* plus gift
- 3 year @ 0.15% APY* plus gift
- 5 year @ 0.25% APY* plus gift
Hat tip to Depositaccounts
