Annual Equivalent Rate (AER)
UK savings comparison rate showing the annual equivalent of interest after compounding, subject to the account's stated rate and conditions.
Annual rate and yield measures used to compare compounding conventions and consumer deposit quotations.
Annualized yield measures convert periodic or nominal rates to a one-year basis so compounding conventions can be compared. Effective Annual Rate explains the general financial calculation, while Nominal vs. Effective Interest Rate shows how to identify and convert a quoted rate.
Consumer deposit labels have jurisdiction-specific meanings. Annual Percentage Yield is the U.S. Regulation DD measure for deposit interest and compounding. Annual Equivalent Rate is used to compare savings rates in the UK market. Similar arithmetic does not make the labels legally or operationally interchangeable.
Use the disclosed annual yield to compare rate mechanics, then review the account itself. Fees, balance tiers, bonus conditions, rate variability, early withdrawals, taxes, currency, liquidity, and deposit-protection status can change the practical outcome without changing the headline formula.
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UK savings comparison rate showing the annual equivalent of interest after compounding, subject to the account's stated rate and conditions.
U.S. deposit yield that annualizes interest and compounding so savings accounts and certificates of deposit can be compared on a common basis.
One-year rate that incorporates within-year compounding so rates quoted with different periodic conventions can be compared consistently.
Nominal rates state an annual quote before within-year compounding, while effective rates measure the resulting growth or cost over the period.