AER stands for Annual Equivalent Rate.
When an interest is paid more than once in a year, its AER indicates what the annual interest rate would be, to get the same overall interest sum, if it were paid just once a year.
On its website ingdirect.co.uk ING Direct is currently offering its online savings account with the following features:
- variable rate is of AER 0.50% (Gross p.a. 0.50%) on deposits of £1 and over
- new ING Direct Savings Account customers will get 2.75% AER* variable (gross p.a. 2.72%, which includes a 2.22% gross p.a bonus fixed for 12 months from account opening. This is a limited offer. The variable rate is 0.50% AER*
- interest is calculated daily and credited to the saver’s account on the last day of each month
- savers can move their money when they like, with no penalties or restrictions
- you can start saving from £1, with no minimum deposits or maximum monthly deposits required
Useful Glossary:
- AER stands for Annual Equivalent Rate and illustrates the interest rate if it was paid and compounded once each year
- Gross per Annum is the annualised rate before deduction of tax at standard rate
- Net per Annum is the annualised rate after deduction of tax at standard rate (currently 20%)
