Our bank currently sends birthday gift baskets to our customers over the age of 55 that have over $50,000 on deposit with our bank. The gift baskets include prepackaged snacks along with some of the bank giveaway items (i.e. coffee mug, kitchen utensils, small cutting board, etc.), but the value would exceed $10. The marketing department thought that the basket alone was over $10 before any of the content was added. Would the value of the gift basket be reportable as interest for maintaining a deposit account and the bank be required to send a 1099-INT for the gift basket value?

I would not. I would classify it as a 1099-MISC transaction type.

Thank you! That is a big help!