Question

Sometimes savings accounts earn a low rate when the balance is under a certain amount, and earn higher rates when the balance is more than a certain amount. This type of interest rate is called a _____.

-interest threshold
-variable interest rate
-fixed interest rate
-changeable interest rate

Answer 1

Variable interest rate

Answer 2

variable interest rate

Step-by-step explanation:

All savings accounts work with variable interest rates since the bank can change them at will at any time. Usually savings accounts use bonus rates to entice customers to save larger amounts of money. Banks set thresholds and as customers save more money and pass those thresholds, the interest rate that they get increases.