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What does AER mean?

April 26, 2017aer mean

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What does AER mean?

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AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest is paid and added each year. The gross rate is the rate payable before income tax deduction. Rates are variable, interest is paid monthly.

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AER stands for Annual Equivalent Rate and shows what the interest would be if we paid interest and added it each year. The gross rate is the rate paid before income tax is taken. Rates may change and we pay interest each month. EAR stands for Effective Annual Rate and represents the yearly cost of an overdraft, which takes into account how often interest is charged to the account and does not include any other fees or charges.