Are we allowed to pay one customer a higher rate of interest in order to get the account than others would receive in that same tier? For instance, they would bring in their $100K if we pay them a rate of interest that usually we only pay for $200K or more, but ONLY him? Is that acceptable??

There's no federal law or regulation that says you cannot vary your rates on deposits among customers as long as there is no "insider" type of relationship with the bank. Analogize it to the fact that some borrowers get better loan rates than others. Not all discrimination is illegal.

Thanks a lot Ken. I appreciate it.