If you're asking how to tell from the system, the core parameters may spell it out, but it most likely depends on the vendor as to how that is done. For instance, our uses the term Rate Method, and you can select it as follows below. We keep it simple and use the "Entered Rate" which equates to Method A. I would ask your vendor to ensure that you're choosing, and disclosing, the method you choose.
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Rate Method - Select the type of rate used when calculating primary earnings.
0 - Entered Rate - Earnings are calculated on a single balance range where the account balance falls.
1 - Weighted Rate - Earnings accrue at an average rate when there is a change made to the interest rates and the account balance does not fluctuate between tiers during the earnings cycle. The earnings accrue at an average WEIGHTED rate when there is a change made to the interest rates and/or the account balance DOES fluctuate between tiers during the earnings cycle.
2 - Split Rate - Earnings are accrued for multiple balance ranges and rates where the account balance falls.
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I hear and I forget. I see and I remember. I do and I understand.--Confucius
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