A reader from Liverpool is stuck about what exactly AER means.
Andy McKechnie, head of sales and marketing for savings at Halifax, tackles the problem.
Chris from Liverpool asks:
What does the term AER stand for? I feel a bit like everyone knows the answer, except me.
You may have noticed the term AER when looking at savings accounts, for example 6.00% AER.
AER stands for Annual Equivalent Rate, and shows what the interest rate would be if interest was paid and added each year.
This allows you to compare accounts easily and shows what return you can expect from your savings over the year. The higher the AER, the greater the return.
If you have a question for Andy, go to the myfinances.co.uk Ask the Savings Expert section.
Or or more information on your savings option go to savings at Halifax
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