Why are two figures shown for AER interest rate?
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Written on: 19.11.2009 [01:28]
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Christelle
Christelle
Topic creator
Posts: 4
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I am searching for a savings account or an ISA and I don’t completely understand all of the numbers that are used when describing the account. Why are there always two different rates? First there is the AER interest rate and then a much lower rate, why? |
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Written on: 19.11.2009 [19:54]
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Rebecca
Rebecca
Posts: 2
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The AER is the interest that would get in a year whereas there are usually two other interest s shown, gross and net. Gross is the interest that you would get per month before tax whereas net is the interest you would get per month after tax. But if you are looking into ISA’s then you should know that there wouldn’t be a net interest figure as the first £3600 is tax free, but perhaps when looking at other savings accounts you would definitely see these words. What are you looking to get? How much are you looking to save, sometimes there are so many other more profitable options but people are not aware of them. |
| Also very interesting: | |
