Is it a reportable bonus (as interest) when we give prizes for $50/$100 deposits into savings accounts to encourage our youth to save? The prizes are valued individually at about $3-$5 each. If we gave one customer more than 2 prizes per year, would this become reportable interest?
Thanks !

I believe that it would be considered interest as it is the payment for specific deposit amounts. As multiple "bonuses" are contemplated, you would have to treat them as interest and add them to any other interest and report after you reach the $10 threshold. The IRS exclusion for "de minimis" premiums only apply to non-cash premiums.