AER Interest Rates

Im_rod20

Hi,
I could do with a bit of advice about Bank Interest AER payments. Barclays currently have a 12 month monthly saver plan offering 6% AER on savings between £20 and £250 monthly.
I dont want to appear stupid, but does this mean that 6% is paid each month, less tax, compounding, which I cant realy believe is possible in todays climate, or does it mean that 6% will be paid at the end of the 12 months, ie about 1/2% monthly.

Sorry to be a bore, but saving cash has never been one of my strong points. :mad:


Regards

Rod

Lokolo

Look up the definition of AER and it will tell you....

Annual Equivalent Rate.

Its the rate yearly, so 6% per year. 1/2% monthly.

Kavanne

AER is annual equivalent rate

Hope that helps

Im_rod20

Many thanks to both Lokola, and Kavanne. You solved my problem with your answer to my question, but dashed my hopes of making a nice nestegg.........


Thanks again

Rod

opinions4u

Im_rod20 wrote: »

Many thanks to both Lokola, and Kavanne. You solved my problem with your answer to my question, but dashed my hopes of making a nice nestegg.........

Despite this, I admire your extraordinary optimism that you could nearly double your money in 12 months by sticking it in Barclays! :rotfl:

withnell

opinions4u wrote: »

Despite this, I admire your extraordinary optimism that you could nearly double your money in 12 months by sticking it in Barclays! :rotfl:

Well, there's potential to do that with Barclays shares!