What does Tiered Rate Account-Method B pay interest on?

A Tiered Rate Account under Method B pays interest only on the portion within a specific tier. This means that the account is structured in such a way that different interest rates apply to different balance ranges or tiers. For example, if an account holder has a balance that falls within a certain threshold, only that portion of the balance receives the corresponding interest rate for that tier. This method encourages account holders to maintain higher balances to achieve higher interest rates, while also clearly outlining how interest is earned based on the account balance distribution.

This approach contrasts with other methods, such as paying interest on the entire account balance, which would not accurately reflect the tiered nature of the account, or calculating interest based on the average monthly balance or the highest balance in the account's history, which do not align with the tiered structure that Method B specifies.