My 1099-INT is in error. The bank agrees they've made an error. Should I report the correct amount or the incorrect and adjust it?

This is up to you:

Here are the considerations:

1. The normal way to do this is to file an extension (4868), pay what you owe (if anything), and then file your original return when you get the corrected 1099-INT.

2. You can file now using the corrected number and hope that when the correct 1099-INT shows up, that it has the same number as you entered into TurboTax (otherwise you have to amend your return).

3. You can file now using the original number, knowing that you will have to amend your return when the corrected 1099-INT shows up.

Since amending a return is a lot more work than filing an extension, personally, I would do #1.

If, however, you desperately need the refund, then do #2, knowing that you are taking a chance on having to file an amendment if the form you receive is not the same as what you entered.