The Fed did a webinar in December on the topic of Reg E exam findings, as part of its Outlook Live series. One of the findings mentioned was failure to pay interest as part of a provisional credit (when an interest-bearing account is involved).
Usually, the math (when banks attempt to include interest) is such that no interest is paid (the calculation results in less than a penny's interest). But occasionally, the amount in dispute is big enough (and eventually rates might increase, maybe -- how's that for confidence?) and the calculations will result in at least a penny's interest. (And, by the way, there's no de minimis amount provision in the regulation.)
If you reverse a provisional credit because you disallow a claim, you should reverse any interest included as part of the provisional credit. If you reduce a provisional credit for some reason, you should recalculate and reduce the amount of interest paid in the provisional credit.
John S. Burnett
Fighting for Compliance since 1976
Bankers' Threads User #8