A Reverse Tier Savings account is a type of savings account that gives you the highest interest rate on your smallest balance and a lower rate as your balance grows beyond a certain point.
That might sound a little counterintuitive at first. Most savings accounts work the other way around: the more you have, the better your rate. But this doesn’t necessarily help people at the beginning of their savings journey, or people with smaller balances.
A Reverse Tier Savings account flips that model entirely, and that flip makes a huge difference.
Red Rocks Credit Union's Reverse Tier Savings account is designed around one idea: your first dollars saved should earn the most.
Here's how it works in practice:
The account is divided into balance tiers, and the highest rate applies to the lowest tier, meaning the first portion of your balance earns the best rate available.
As your balance grows beyond that first tier, the rate adjusts. The result is an account that works hardest for you at the beginning of your savings journey, when every dollar counts the most.
| Minimum Opening/Account Balance | Div. Rate | APY** |
| $0-$2,000 | 5.60% | 5.75% |
| $2,001-$5,000 | 1.74% | 1.75% |
| $5,001-$10,000 | 0.30% | 0.30% |
| $10,001-$50,000 | 0.25% | 0.25% |
| $50,001+ | 0.10% | 0.10% |
**APY = Annual Percentage Yield. APY, terms, and conditions are accurate as of 01/21/2026 and are subject to change without notice. No minimum to open and no minimum balance required. Limit of one Reverse Tier Savings Account per member. Interest is paid at tier rates on the balances within each tier. Total interest paid is the sum of interest earned from each balance in each tier. APY paid is a blended APY of applicable tiers. Membership eligibility required. All terms and conditions are subject to change without notice. Federally insured by NCUA.
What is a blended APY?
When your balance spans multiple tiers, each portion of your money earns the rate for that tier. The total earnings on your account are the combined result of all applicable tier rates. Think of it this way: part of your savings may earn one rate, while another part earns a different rate. The APY on your account reflects the total dividends earned across all balance tiers.
Reverse Tier Savings is designed for a specific type of saver. Here's how to know if that saver is you.
If you've never had a dedicated savings account before, or you've had one but it's been sitting mostly empty, Reverse Tier Savings meets you where you are. There's no waiting or thresholds to hit first. Whether you're a college student opening your first savings account, a parent starting a fund for your child's future, or a grandparent putting something aside for a grandchild, this account works for you from the first deposit.
An emergency fund is one of the most important financial tools you can have, and most people are still in the process of building one. Whether you're working toward your first $500 or aiming for a full month of expenses, Reverse Tier Savings is a great fit. Your balance stays in the high-rate tier while you're building, so your money works hard when you need it.
Colorado life has a way of throwing unexpected expenses at you, like a car repair after a rough winter on I-25, a vet bill, or a broken furnace in January. Having even a small dedicated fund changes everything when those moments hit.
Saving for something specific and relatively near-term? Think: a ski season fund for Breckenridge or moving expenses for a new Denver apartment. Reverse Tier Savings is a great place to park money you're intentionally building toward a goal, especially when the target amount falls within the highest-rate tier.
No fees and no complicated requirements to keep track of. For savers who want a straightforward account that earns a solid rate without any fine print, Reverse Tier Savings delivers.
If your income varies month to month (freelance work, seasonal employment, part-time hours), maintaining a high balance consistently can be a challenge. Reverse Tier Savings is structured so even a modest balance earns competitively, making it a good fit for savers whose account balance ebbs and flows.
Not sure which type of savings account fits your situation? Here's how to think it through.
Still not sure? That's what we're here for. Our team is happy to answer your questions and help you figure out which account makes the most sense for where you are right now.
Our Reverse Tier Savings account is a great example of APY in action. You earn up to 5.75% APY** on your first $2,000, meaning your smallest dollars earn the most. No minimum deposit, no minimum balance, and no service fees. Just a straightforward account designed to reward you for starting to save, regardless of where you are in your financial journey.