TISA - What is a Bonus? Why is it important?

Compliance > Regulation DD - TISA
Q:  What is a Bonus?  Why is it important?

A:  Under Truth in Savings, a bonus means a premium, gift, award, or other consideration worth more than $10 (whether in the form of cash, credit, merchandise, or any equivalent) given or offered to a consumer during a year in exchange for opening, maintaining, renewing, or increasing an account balance.  The term does not include interest, other consideration worth $10 or less given during a year, the waiver or reduction of a fee, or the absorption of expenses. 

The identification of a bonus is important for two reasons:
  • First, account disclosures must reflect specific bonus information, if applicable, that reference the amount or type of any bonus, when the bonus will be provided and any minimum balance and time requirements to obtain the bonus.
  • Second, any advertising of a bonus triggers additional disclosures that include the annual percentage yield, time requirement to obtain the bonus, minimum balance to obtain the bonus, minimum balance required to open the account (if greater than the minimum balance necessary to obtain the bonus) and when the bonus will be provided.  (certain exemptions apply)
 
 

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