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What does gross and AER mean?

Updated over 2 months ago

Gross: This means the rate of interest payable before the deduction of income tax.

AER: Stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded once each year.

As every advertisement for a savings product which quotes an interest rate will contain an AER, you will be able to compare more easily what return you can expect from your savings over time.

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