Does anybody know where I can find information specifically on Giving (not receiving) gift to the so called better customers? It seems that everything I read addresses bank employess accepting gifts. Thanks

Sorry I should have proof read this before posting. Typed to fast spelling is bad.

You might check the rules on bonuses in Reg DD, premiums in Reg Q, and if your customer has a loan with you, you run the risk of a RESPA violation.

As Dude said, there is Reg DD & Q - IF - the gift you are giving is related to an account opening = Bonus, Interst, etc.
If I read between the lines of your question, I think you are asking if there is any concern with giving a gift to your "Best" existing customers.
For example, a set of Kitchen Knives / nice Leather Portfolio / etc to customers who keep over $300k on deposit, or borrower over $1.5MM etc.
IMO - this is not a problem, just keep it quiet and under the radar or you will have other customer who think they are a "Good Customer" wanting to know why they didn't get what Jane Doe got. And don't put your bank logo on it or then "technically" you should include FDIC Insured.

There is no problem giving gifts to customers. Anything over $600 will require a 1099MISC. Anything under that technically still needs to be reported by the customer as miscellaneous income for tax purposes.

I don't think there is any prohibition on the gift giving, but we don't do it. One of our "best" customers is currently serving time in a federal prison for fraud. Nobody was more surprised than we were when we found out. An in-depth review of their accounts at our bank after the customer's arrest revealed some of the fraudulent transactions, but they were fashioned in a way that escaped our radar. Imagine how it would look if we were showering that customer with gifts while they were committing fraud using our bank as a conduit.

It just seems dishonest to me to give a few customers $500.00 gifts when the rest of them get a calendar and pen.

The morality or fairness is a whole other question. We are compliance people and normally leave the moral decisions to other people

I always wondered how you decide who is a better customer. The one with investible balances of $100K or so, or the one paying $100 or more a month in various fees?