Posted by Chuck on August 23, 2017
Savings Accounts

Published on August 23rd, 2017 | by Chuck

46

Giftsforbanking 24 Month CD Offering 1.85% APY + Free Substantial Gift

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: Unknown 
  • Insurance: FDIC

The Offer

Direct Link to 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

As you’ll see from the list of gifts, these are substantial values, not knickknacks.

 

The Fine Print

FAQ

  • 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  • Early withdrawal penalties will equal six months simple interest on the amount withdrawn subject to penalty.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



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J
J

Very attractive! Tempted to do a $50000 CD for the bose and amazon bundle.

J
J

just applied for a CD with $51000, currently under review, hope everything goes well

William Charles

No CC funding I assume? Hard/soft pull?

JoanAppleseed
JoanAppleseed

Make sure you don’t accidentally sign up for the 3- or 5-year CD. Here’s why:

2 year @ 1.85% APY* plus gift
3 year @ 0.15% APY* plus gift
5 year @ 0.25% APY* plus gift

William Charles

Added this point to the post!

T
T

good deal if you are risk adverse to the stock market 🙂 but otherwise you will probably miss out on some significant gains on that kind of capital

Tom
Tom

Or miss out on significant losses. Market is extremely overvalued and this is not different lol

Mancy
Mancy

if you know this for sure then youll still miss out on significant gains because you could short.

Rob
Rob

Unless we get tax cuts and the market doubles.

Ken
Ken

Or it goes the other direction which is also entirely possible. Valuations aren’t supported by fundamentals. All it’s going to take is one catalyst to send things into a spiral. More terrorist attacks, war with N Korea, China, Russia, Isis in the ME, whatever. Things certainly aren’t rosy.

But tax cuts, a repatriation holiday, etc could send things higher of course.

AB
AB

Hate to break it to you but the market already expects those tax cuts, hence the 17:1 P/E. If they don’t come, market crashes.

We are definitely in bubble territory.

zalmy
zalmy

Now, like always, the question is if you’ll need the money in the long term or short term. Long, find some cheap stocks and stick with them. Short, go for this.. Though make sure you’ve exhausted the 5% savings options first, which are far better deals, as well as completely liquid

Ken
Ken

We’ve been at all time highs and this bull has been running for almost 10 years now. Gotta be getting tired soon.

Ferris
Ferris

That’s what everyone’s been saying the last 3 years. Meanwhile, we are up around 20% from a year ago.

William Charles

Always good to have an emergency fund in addition to money in the market.

Jim
Jim

With the 1099 on the “Gift” I would recommend you do your research for the Fair Market Value (FMV) so you can dispute, if needed. Typically, the dollar amount listed on a 1099, Actual Market Value (AMV) far exceeds the FMV. Here’s a quick guide:

https://www.thebalance.com/how-to-dispute-an-arv-on-your-sweepstakes-taxes-897036

Molly
Favrefan4
Favrefan4

I guess I’m shocked by how scam-y the user interface looks.

Looks like something out of the late 90s. Ha.

Felix
Felix

Hey Chuck,

Thanks for the information. How do we verify the FDIC status of the website? I know they say they are affiliated with Flushing Bank, but how do we know that they have the same legal status as the bank?

This is what I found:
https://research.fdic.gov/bankfind/detail.html?bank=58564&name=Flushing%20Bank&searchName=&searchFdic=&city=&state=&zip=&address=&tabId=2

So it lists http://www.igobanking.com as a “Deposit Accepting Website”, but not Giftsforbanking.com. How do we know it’s the same thing?

Many thanks in advance!

Rick
Rick

From the FAQ section:

Q: Is GiftsforBanking a safe and financially sound organization?
A: GiftsforBanking, a value added program, is offered by iGObanking.com the online division of Flushing Bank. Flushing Bank is an FDIC insured institution established in 1929. GiftsforBanking CDs are FDIC insured to the maximum allowable limits.

I’ve had a CD with iGObanking since 2011. Everything had been good and I have no complaints about the bank or its customer service.

Rick
Rick

This could still be a very good deal for some people but two other wrinkles to factor in. First, according to the website the Amazon gift certificates expire two years from the date of issuance. And second, the value of the gift listed on the 1099-INT includes sales tax and shipping and handling. Maybe the bank can tell you the total value of the gift in advance, otherwise you could be in for an unpleasant surprise.

From the website: Q: Will I have to pay taxes on my gift?
A: Yes, a 1099-INT statement for the value of the gift (including applicable sales tax, shipping and handling costs) will be sent to the account owner on record for the year of gift redemption.

Penny
Penny

tempted on jumping on this deal.. one of the gifts is an expensive espresso maker that I actually want but too cheap to buy.. however the rates aren’t that great as DOC listed.. Must resist temptation

Peter
Peter

doesn’t seem to be any indication of expiration. any idea? until enough of us get in on it?

Mjs
Mjs

Yeah, even if I wanted a washer and dryer, probably get killed on the “shipping” added to the 1099.

If doing this, small items may be better value.

yu
yu

I wish they publish the values to each of the gifts that they will put on 1099. Sometimes the MSRP is really high. If you are at high tax bracket, and you are not planning to buy the stuff originally, it may not be worth it.

William Charles

You can always dispute the values if you don’t agree with them

Pat
Pat

How do you do that?

William Charles

Just google dispute arv and there are a lot of guides.

David
David

I spoke with a representative using the number on their site (888-432-5890) and I was able to get the predetermined amount that will be listed on your 1099.

$25,000 – $49.999 = Gift value on 1099 is $575
$50,000 – $99,999 = Gift value on 1099 is $1100

That is predetermined value based on the cost of the item, taxes and shipping. Hope this helps in determining whether it’s a worthwhile investment. At first I thought the Apple watch/Gift Card combo would be ideal, but i wouldn’t get the biggest bang for my buck. The Vitamix is valued at $515 online, so adding taxes, it’s actually not that far off. Might jump on this after all.

David
David

I spoke with a representative using the number on their site (888-432-5890) and I was able to get the predetermined amount that will be listed on your 1099.

$25,000 – $49.999 = Gift value on 1099 is $575
$50,000 – $99,999 = Gift value on 1099 is $1100

That is predetermined value based on the cost of the item, taxes and shipping. Hope this helps in determining whether it’s a worthwhile investment. At first I thought the Apple watch/Gift Card combo would be ideal, but i wouldn’t get the biggest bang for my buck. The Vitamix is valued at $515 online (Assuming it’s the A3300), so adding taxes, it’s actually not that far off. Now that you know the amounts, which way do you lean?

William Charles

I’d be contesting their value based on whatever the cheapest is I could find online at the time.

David
David

Edit: Sorry, I didn’t know the first post went through, please delete

Michael J.
Michael J.

Anyone know when this offer might expire?
Took a quick look and couldn’t find it on website.
Thanks.

Dave
Dave

I know it’s a crystal ball, but anyone think it’s worth doing the deal and locking in $25k for 2 years when interest rates are creeping up? Might be better to just wait it off, no?

W
W

Has anyone determined that this bank is legit?

I spoke with them and was told by one rep that Sept 19 is last day.

Santorini
Santorini

I’m wondering the same thing – has anyone actually opened a CD with Giftsforbanking and everything go well and can confirm it’s all legit?

W
W

I found out that the bank’s ARV’s for $25K is $575, $50K – $1,100 and $100K – $2,250.
In the $100K category a Trek Bike is sold for $1,675, a Rider Lawn Mover is also $1,675 and I assume a pair of diamond earings is also about the same. So as far as the 1099-INT is concerned shipping and handling (less $136 sales tax) is $439 for any of the items. A bit pricy for a pair of earings, still quite high for a bike and maybe quite a deal for a 650 pound mower.
It’s possible that the $439 might effect your taxes quite a bit so that you would want to dispute the ARV.
How the heck would you do that not knowing anything about the banks shipping and handling charges.

W
W

To answer my own question. Went to the Trek website. The cost is $1,699 (sorry I said $1,675) and shipping is free. So a dispute for $439 less would be fairly straightforward.
Sears sells the rider mower (actually 20hp vs 19hp) for $1,399 and $75 for shipping.
Moral of story – should be an easy dispute with the IRS.

By the way the bank is part of Flushing Bank – an FDIC insured institution established in 1929.

David
David

I signed up for the $25k CD deal. The whole process was quick and painless and the gift arrived within a week of signing up for the account. We were sorta in the market for a new Vitamix so this actually worked out pretty well. I was expecting the current A3200 Vitamix, which is valued at $500. Turns out they gave me the A3500, which is going for $600+tax everywhere at the moment. Given that the Interest statement will show this as $575, we actually did pretty well. Sure, we’ll be paying taxes (high tax bracket mind you), but it’s still MUCH cheaper than what we’d pay for this in the store. Great find!

qmc
qmc

Right now, igobanking (per comments, this is the same company) has a 2 year cd ($1000 minimum) at 2.32% APR (2.35% APY)

Compared to the 1.85% APY+gift, this is a difference of 0.5% APY per year, or 1.02% over the course of the 2 year CD.

This works out to, if I’ve done the math correctly,

25k = $255
50k = $510
100k = $1021

So make sure you value your “substantial gift” at more than this amount. Otherwise you should get the higher rate CD.

Jason
Jason

Has anyone completed an appeal or adjustment for the 1099-INT amount they listed for the free item? I’m curious how best to do that.

Kien
Kien

Has anyone got a 1099INT from them for this tax season ? Just curious what or how much was the tax liability and the offer you received. Also just want to inform folks of a better offer with a 36 mon/3-yr CD @ 2.5% APY and the gift here is even better than what was previously post, especially on higher end tiers. For example, I looked into the Royal Crown Diamond Certificate for 2 on a 6-8day cruise, balcony state room with a value of $3770 per RCCL documentation for a $100,000 3-yr CD @ 2.5% which is quite competitive. Granted you are locked to a 3-yr, but if you are gonna invest in a 3-yr CD anyway, it’s a darn good package.

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