When an account pays one rate of interest on a minimum amount on deposit and a higher rate of interest on additional deposits,this is called ____ interest.
A)compound
B)variable
C)tiered
D)none of these

Question

Quizplus · Accepted Answer

Tiered interest is a type of interest offered by banks or financial institutions where the account holder earns different interest rates on different tiers of their deposit. The interest rate on the balance below the minimum amount is lower, whereas the interest rate on the balance above the minimum amount is higher. Therefore, the correct answer is C, tiered interest.

When an Account Pays One Rate of Interest on a Minimum