Stepped interest is when you're paid a different interest rate for parts of your account balance that fall within set dollar ranges.
Let us show you how stepped interest works with the below example:
$0 - $1,999 X%
$2,000 - $24,999 Y%
If there's $30,000 in an account that pays stepped interest, X% is paid on the first $1,999, Y% is paid on the amount from $2,000 to $24,999 and Z% is paid on the amount from $25,000 to $30,000.