Annual Equivalent Rate (AER): Definition, Formula, Examples
The annual equivalent rate (AER) is the interest rate for a savings account or investment product that has more than one compounding period. AER is calculated under the assumption that any interes… See more
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What Is AER? (Annual Equivalent Rate) - Halifax
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As an example, if you deposit and hold £500 with a bank offering 1.5% AER and an annual compound rate, after a full year you’d receive £7.50 in interest. Hold that balance of £507.50 …
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