What feature of a variable rate account may change over time?

The interest rate and Annual Percentage Yield (APY) of a variable rate account are the features that may change over time. This is a defining characteristic of variable rate accounts, as they are linked to a specific benchmark or index that can fluctuate based on prevailing economic conditions.

For instance, if the benchmark interest rate increases, the financial institution may adjust the interest rate offered on variable rate accounts accordingly, resulting in a change in the APY offered to account holders. Conversely, if the benchmark decreases, the interest rate and APY may also decrease, impacting the earnings potential of the account holder. This variability allows account holders to potentially benefit from higher rates during periods of rising interest but also exposes them to the risk of lower rates in a declining economic environment.

The other options do not reflect features that would typically change in a financial account context. Personal information is static until the account holder decides to update it. The bank's physical location is not something that changes frequently and is typically a more stable characteristic. The number of allowed withdrawals is generally set by the terms of the account and would only change if the bank decided to modify those terms, but this is not as inherently variable as the interest rate and APY.