Balance tiers: when 4.9% applies to only part of the money

Some accounts use tiers. A promoted rate might apply to balances up to a cap, above a threshold, or only after specific activity. That means the blended outcome can differ from the headline.

For learning purposes, imagine one tier earning a promoted rate and another tier earning a lower standard rate. The final result depends on how much money sits in each tier.

What to document

• Minimum balance
• Maximum balance for the rate
• Standard rate after the cap
• Monthly conditions

Educational example only. This article is not an offer, guarantee, recommendation, or financial advice.