Reverse Tier Interest Calculator

A reverse-tier account can pay a higher yield on the first part of your balance and a lower yield above a threshold. Model two marginal balance tiers for one year.

Enter your values to see an estimate. Enter 0 for amounts that do not apply.

How this calculator works

Interest = min(balance, first-tier limit) × first-tier APY / 100 + max(0, balance − first-tier limit) × remaining APY / 100. Blended APY is total interest divided by the balance, multiplied by 100.

Worked example

With 15,000 deposited, the first 2,000 at 6% APY earns 120 and the remaining 13,000 at 0.05% earns 6.50: total interest is 126.50 and blended APY is about 0.8433%.

Assumptions and limits

This is a marginal two-tier, one-year model. It does not apply the top APY to the entire balance or model changing balances, qualification conditions, fees or taxes. Confirm the institution’s tier rules.

How to choose your inputs

Read the account’s rate schedule to identify the first balance cap and the APY paid on each portion above or below it. Enter yields for marginal portions, not a rate applied to the whole account after crossing a threshold. Confirm that any activity or qualification conditions assumed by the quoted APYs are met.

How to interpret your result

Look at both total annual interest and blended APY when changing the balance. Adding money above the first tier can increase dollars earned while reducing the blended yield. That is different from losing interest on the first portion. The estimate assumes one unchanged balance for a year and does not price missed qualification conditions.

Primary references

CFPB: Annual percentage yield calculation

This educational estimate uses your inputs. It is not individualized financial, tax, insurance, or investment advice, a lender offer, approval decision, or a promise of future results.

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