.

Similarly one may ask, what does 3% AER mean?

AER stands for annual equivalent rate. It lets you compare interest rates across accounts and reflects not just the amount of interest but also how often it is paid. The higher the AER, the greater the return.

Subsequently, question is, how is Aer calculated UK? AER stands for annual equivalent rate, and it's calculated by combining any interest earned on a savings product during a 12 month period with the amount that you originally deposited. This is known as compound interest.

Regarding this, what is a good Aer rate?

The AER is the "Annual Equivalent Rate", and represents the amount you will earn, including compound interest, if you leave money in for a year. So a 1.5% AER means either that the account pays exactly that amount at the end of the year, or it pays an equivalent amount spread throughout the year.

What's the difference between AER and gross interest?

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.