| |
Interest for Reg Q purposes? Y or N |
Bonus under Reg DD?
Y or N |
Reportable as Interest?
Y or N |
Legal for DDAs?
Y or N |
Waiver or reduction of fees
Examples:
- Free or lower cost safe deposit boxes
- Free online bill payments;
- Lower or no fees for traveler's checks for accountholders;
|
N |
N |
N |
Y |
Absorption of expenses
Example:
- Interest rate discounts on loans for deposit accountholders;
|
N |
N |
N |
Y |
| Discount coupons for goods or services at restaurants/stores (with no cost to the bank) |
N |
N |
N |
Y |
Payment to the depositor as compensation for use of funds constituting a deposit, if:
- Given at the time of the opening of a new account, or adding to an existing account;
- No more than two premiums per account are given within a 12-month period; and
- The value of the premium, (or in the case of articles of merchandise, the total costs, including taxes, shipping, warehousing, packaging and handling costs) does not exceed:
- $10 for deposits of less than $5,000; or
- $20 for deposits of $5,000 or more
|
N |
Y if more than $10 per account per calendar year is given for a specific promotion.(You aggregate per account only the market value of items that may be given for a specific promotion.) |
Y if $10 or more of reportable interest is paid to a customer during a year. |
Y if it meets all three criteria. If it is given at the time of opening the account or adding to an existing account but is over the amount limits in #2 & 3, it is not permissible under Reg Q. |
Giving the customer a premium in any amount that is not, directly or indirectly:
- Related to; or
- Dependent upon
the balance in a demand deposit account and the duration of the account balance.
If you don't require a minimum balance or require the balance to remain on deposit for a particular period of time in order to earn the bonus, you can utilize this part of Regulation Q to allow you to provide something to your in connection with a demand deposit account without it being limited to the time of opening or adding to the account and without it being limited in amount. |
N |
Y if more than $10 per account per calendar year is given for a specific promotion.
(You aggregate per account only the market value of items that may be given for a specific promotion.) |
Y if $10 or more of reportable interest is paid to a customer during a year. |
Y if it conforms to the criteria. |
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