Compliance Question of the Week

If a credit union offers to deposit $25 in a member’s share account if the member refers an individual to the credit union, and this individual then opens an account, is the $25 considered a bonus?

No. Under Truth in Savings a bonus is any premium, gift or award worth more than $10, given or offered to a member to open, maintain or renew an account. Here, the $25 deposit is not paid to the individual who opened the account so it is not a bonus.

Related Links:
Electronic Code of Federal Regulations, Title 12: Banks and Banking

 

Questions? Contact the Compliance Hotline: 1.800.546.4465, compliance@nwcua.org.

Posted in Around the NW, Compliance, Federal.