That would seriously annoy me, too.

I just checked the bank's website and they advertise a "free gift" to open a checking account. DH is on a plane right now so I will get his side of the story later today. I will certainly be writing a letter to the bank president and perhaps their Facebook page.

Always beware of "free" gifts......and prizes too.....

Sorry this happened, but am not surprised. I always wonder why people continue to give their hard earned $$ to banks, that try whatever they can to add on fees, when you can avoid all that by joining a credit union. You are one of the owners and not supporting the banking system, or their greed.

Sounds like that interest statement is a legal requirement rather than a bank policy - not sure why the bank would benefit from it being considered interest income to you (& expense to them). It might benefit their tax situation slightly, but I am not sure.

It is for sure an IRS rule that any such "free gifts" whether cash or goods are considered income. I don't recall when the rule went into effect but it has been for 10 years at least. Usually that is disclosed in the fine print of the advertising or agreement.

The "fine print" will be the death of me! My/our fault certainly, but I know the bank's representative did not disclose the tax info. We really didn't want an air popper (really, who would-the popcorn tastes like cardboard)! Lesson learned.

It's not the bank. It's the IRS. Anything "free" has a value. And can only be given to someone with a tax ID #.

Not your fault, I'd fight it. Nonsense.

Besides, what millennium are these people in? Free appliances at the bank? They still do that? Who cares. And an air popper? Did the teller have a bouffant hairdo, too?

I'd give 'em what for.

Since you donated it to Goodwill, take a $25 charity deduction (that's what the bak valued it at) for a net effect of zero.