Planning to offer a $25 deposit to savings account after presentment of perfect attendance certificate (up through high school)or college Dean's List certificate. Are we correct in that we have to disclose this on the TISA as a bonus? Also, that this will be counted as interest and require a 1099? In advertising this since it is not tied to a minimum balance or time requirement then are we correct in that the only information needing disclosed in the ad is the requirement to present the certificates?

Since this $25 is not "offered in exchange for opening, maintaining, or renewing an account or depositing funds in an existing account" does it even meet the definition of bonus and have to be disclosed?

Is it a bonus under TISA/Regulation DD? No, and you have cited the reason why.

Is it interest for IRS purposes? No, because interest is a payment for a deposit of money, and you are paying for grades.

It would be a reportable payment under 1099-MISC rules if the $600 trigger is met.