The AER, or Annual Equivalent Rate, is the official rate for savings accounts, and is designed to allow easy comparisons as it's meant to smooth out the variances between accounts (it's the equivalent of the APR for debts). The idea is it shows what you'd get over a year if you put money in the account and left it there. Interest rates for savings accounts and related savings vehicles varied widely, from as low as 0.01 percent annual percentage yield to as high as 6.17 percent introductory APY (good for up to Annual equivalent rate (AER) An AER is quoted on savings accounts and current accounts for when your balance is in credit. It is like the EAR but refers to interest earned, rather than paid. When you open a savings account, the bank will pay you to keep your money with them. To work out how much, the AER, or the Annual Equivalent Rate, takes everything linked to your savings account – the headline interest rate, any special bonuses and compounding – and boils it down to one handy percentage. The average interest rate on a savings account is 0.1 percent APY. Fortunately, many banks and online institutions offer high interest savings account rates well above that average. Fixed-rate bonds are savings accounts that usually pay a set rate of interest, agreed at the beginning, for a certain period of time. They generally offer higher interest rates than easy access accounts, especially if you opt for a fixed-rate bond that lasts for two years or more. They come with terms and conditions, however.
The AER, or Annual Equivalent Rate, is the official rate for savings accounts, and is designed to allow easy comparisons as it's meant to smooth out the variances between accounts (it's the equivalent of the APR for debts). The idea is it shows what you'd get over a year if you put money in the account and left it there. Interest rates for savings accounts and related savings vehicles varied widely, from as low as 0.01 percent annual percentage yield to as high as 6.17 percent introductory APY (good for up to
14 Nov 2019 Annual equivalent rate is usually abbreviated to AER. It is a figure that helps you calculate your true annual earnings from a savings account or Note that the advertised rate for most bank accounts, savings and investments refers to gross interest – the 'flat' annual rate earned before tax and any charges
Definitions. AER stands for Annual Equivalent Rate. This shows you what the rate would be if interest were paid and compounded each year. Gross is the Interest is paid gross i.e. without tax being taken off on all our other savings accounts. AER stands for Annual Equivalent Rate and shows you what the interest rate
Interest rates for savings accounts and related savings vehicles varied widely, from as low as 0.01 percent annual percentage yield to as high as 6.17 percent introductory APY (good for up to $1,000) from Digital Federal Credit Union. The Annual Equivalent Rate (AER) is the interest rate most often used for comparisons as it shows you how much interest you will earn over the course of a year taking into account bonuses, compounding and charges. Gross rate is the rate of interest that you would earn at the outset of taking out a savings account.