Answer:
It's not a bonus under Regulation DD because it's not given for "opening, maintaining, renewing, or increasing an account balance."
It's also not interest under Regulation Q, because it's not linked directly or indirectly to the term or amount of a deposit. The instructions to form 1099-INT suggest that even though we might not call this money interest, it should be reported as such since it's credited to the customer's account.
First published on BankersOnline.com 1/17/05