How and when do the interest rates and tiers change?
The interest paid by the Program Banks is currently tied to the Federal Funds Effective Rate-Monthly Average and can be reset monthly. Most likely, the rates paid to customers will fluctuate if the Federal Funds Effective Rate—Monthly Average fluctuates. The amount of any such fluctuation of rates paid to customers will be determined based on the fluctuation in the Federal Funds Effective Rate-Monthly Average, competitive factors, costs to operate the Program, amounts invested in the Program, the then current tier structure, and other factors. Because we make money based in part on the difference between what the Program Banks pay on cash invested in the program and what customers are paid on their cash in the program, we have an incentive to decrease the rates paid to customers when the Federal Funds Effective Rate—Monthly Average decreases and less of an incentive to increase such rates when the Federal Funds Effective Rate—Monthly Average increases. We may increase or decrease the r
The interest paid by the Program Banks is currently tied to the Federal Funds Effective Rate Monthly Average and can be reset monthly. Most likely, the rates paid to customers will fluctuate if the Federal Funds Effective Rate Monthly Average fluctuates. The amount of any such fluctuation of rates paid to customers will be determined based on the fluctuation in the Federal Funds Effective Rate Monthly Average, competitive factors, costs to operate the Program, amounts invested in the Program, the then current tier structure, and other factors. The interest paid by the Direct Banks is set by them based on their deposit needs. Because we make money based in part on the difference between what the Program and Direct Banks pay on cash invested in the program and what customers are paid on their cash in the program, we have an incentive to decrease the rates paid to customers when the Federal Funds Effective Rate Monthly Average decreases and/or when the Direct Bank rate decreases and less
