Regulation DD and Paying a Bonus
Issue/Inquiry
The Bank is offering a bonus of over $10.00 in conjunction with a deposit account. The Bank will be adding the interest rate and annual percentage yield to the disclaimer on its advertisements and reporting the bonus as interest. Should anything else be added to the advertisement? Should the bonus be added to the account opening disclosure? Is the rate calculated using the bonus amount and the amount required to receive the bonus?
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