| | What is AER If you're saving money then you'll come across AER. It stands for Annual Equivalent Rate and tells you how much interest a company will pay you when you leave your money in a savings account for a year. Legally the lender has to tell you what their AER is. The AER enables you to compare the interest rates paid by different companies.The higher the AER the more interest you will be paid. | |
Click on the arrow to start the video on understanding interest and APR | What is APR?
If you're borrowing money then you'll come across APR. It stands for Annual Percentage Rate and anyone that lends you money legally has to tell you what their APR is. The APR is the interest rate plus any fees that are charged for arranging the loan. You can use the APR to compare different companies borrowing costs. The higher the APR the more interest you will have to pay. |
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