Definitions for "Annual Equivalent Rate"
This illustrates what the interest rate would be or is if paid and compounded on an annual basis (excluding any bonus interest payable). This helps compare benefits of annual and monthly interest accounts.
Appears in adverts relating to all interest-bearing accounts. This shows the advertised interest rate as if it were paid and compounded once a year. It should allow consumers to compare products more easily. From 1st January 1999 all adverts will have to include the AER.
The rate of interest that shows what the gross rate is if paid and compounded annually.
Keywords:  definition, see
See definition here.