10. describe the difference between tiered rates and variable rates?

A variable interest rate (sometimes called an “adjustable” or a “floating” rate) is an interest rate on a loan or security that fluctuates over time because it is based on an underlying benchmark interest rate or index that changes periodically.

A tiered-rate account is a checking or savings account that pays interest at increasingly higher rates as the account balance increases. Each tier consists of a range of account balances and interest rates earned by the customer if his or her balance falls within that range

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