Kaupthing Edge Question

nordberg

I opened the KE account last week very painlessly. Very smooth setup and my deposit has just arrived in the account. However, I was surprised to see my interest rate was only 6.31% when I was expecting 6.51% as advertised.

What's the deal. Clearly I'm missing something.....

whu

the AER is 6.3% and gross figure is 6.5%

nordberg

OK but vice versa isn't it? Gross is 6.3 and AER is 6.5?

heatherw_01

You get 6.5 AER as long as you keep £100 in your account. The gross is 6.3

Beddie

The AER takes into account the interest you earn on the interest, which is paid monthly.

So you will get 6.31% on whatever is in your account. This is equivalent to 6.5% on the original amount invested.

Please tell me you have a decent amount in this account before worrying about little amounts like this.