1. Money borrowed to invest in certificate of deposit
The interest paid for the loan and the interest earned from CD are totally two separate items.
You must report the total interest you earn on the CD in your income. You may be deduct the interest you pay as investment interest, up to the amount of your net investment income.
2. Gift for opening account
If you receive non-cash gift or services for making deposits or for opening an account in a savings institution, you may report the value as interest.
For deposits of less than 5,000, gifts or services valued at more than 10 must be reported as interest.
For deposits of more than 5,000, gifts or services valued at more than 20 must be reported as interest.
3. Interest on insurance dividends
If it is left on deposit with an insurance company and can be withdrawn annually, it is taxable when it is credited to your account.
If you can withdraw it only on the anniversary date of the policy, the interest is taxable in the year that date occurs.
4. Prepaid insurance premiums
Any increase in the value of prepaid insurance premiums, advance premiums, or premium deposit funds is interest if it is applied to the payment of premiums due on insurance policies or made available for you to withdraw.
PSQ
Source: http://www.irs.gov
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