We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
We're aware that some users are currently experiencing errors on the Forum. Our tech team is working to resolve the issue. Thanks for your patience.
Question of the Week: What's the difference between APR and AER?
Former_MSE_Archna
Posts: 1,903 Forumite
Q. What's the difference between APR and AER?
A. Quite simply, APR is the official measure used for debt, AER is the same for savings.
The Annual Percentage Rate (APR) is the overall cost of the debt over a year, including any associated fees. The Annual Equivalent Rate (AER) shows you the interest you'd earn if you put your money in an account and left it there over a year.
Click reply to discuss
[threadbanner]box[/threadbanner]
A. Quite simply, APR is the official measure used for debt, AER is the same for savings.
The Annual Percentage Rate (APR) is the overall cost of the debt over a year, including any associated fees. The Annual Equivalent Rate (AER) shows you the interest you'd earn if you put your money in an account and left it there over a year.
Click reply to discuss
[threadbanner]box[/threadbanner]
0
Comments
-
As I understand it the above is correct, but the APR & AER figures were introduced to make it easier to compare accounts from different providers. They all have to use the same procedure to produce the figures, so we can immediately see the best value.0
-
OK, you win, that's the most boring QotW ever...0
-
but informative, I always suspected this was true now I know0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.5K Banking & Borrowing
- 254.4K Reduce Debt & Boost Income
- 455.4K Spending & Discounts
- 247.4K Work, Benefits & Business
- 604.2K Mortgages, Homes & Bills
- 178.5K Life & Family
- 261.6K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards