Financial Malaprops: misused & confused words

Tonyharp

Always puzzled me - what is the difference between APR and AER? And does anyone have the formulas for calculating them?

JimmyTheWig

Tonyharp wrote: »

Always puzzled me - what is the difference between APR and AER?

There's no difference. Just that APR is what you are charged to borrow and AER is what you are given to save.
If you borrowed £1000 at 10% APR and, on the same day, put £1000 into a savings account paying 10% AER and left both alone for a year the amount you owed on your loan would be the same as the amount in your savings account.

Valli

bryanb wrote: »

Here's one that baffled me for the 14 years I worked for the fire service. Inflammable or flammable, what's the difference? Sounds as though they are opposites.

ariarnia wrote: »

Inflammable and flammable both mean “combustible.” Inflammable is the historical term but was replaced with flammable in certain technical uses because of a belief that the prefix in- might confuse people into thinking "notcombustable". It should be flammable and nonflammable

:T:T:T:T
because it doesnt actually have the prefix in!
Inflammable is the adjective derived from the verb 'inflame'

SaintMark

pendulum wrote: »

Your talking absolute rubbish of course, its never been called house assurance or car assurance, what planet are you on. In fact your so wrong I wonder if you were joking but I can't see any evidence of that.

Insurance is for something that might happen (Might crash the car: car insurance)
Assurance is for something that WILL happen (Life assurance: because everyone dies, you can be ASSURED of that)

So why is it not Death assurance? It's not life that's assured.

SaintMark

I'd like to give some clarification (if I can, I'm not absolutely sure it's clear to me still) about the 55 day interest free period on credit cards. It's not necessarily 55 days, and Martin Lewis should know better than to imply that it is and add to the confusion. I've been caught out by thinking it was and nearly lost money.
I think there's 55 (or sometimes 56) days between, say, your February bill and the payment due date on your March bill. This is split into a 30 day period and a 26 day period. Any purchase made in the 30 day period between your February bill and your March bill is interest free up until the payment due date for your March bill (usually 26 days after you've received your March bill). So it could be anything between 26 and 56 days.
I think thats right. If anyone can confirm this, or give more clarification if I haven't got it quite right (or if I haven't explained it very well), please feel free.

VoucherMan

SaintMark wrote: »

If anyone can confirm this, or give more clarification

Near enough. I'm sure it varies from card to card. Some cards I've had had a payment due date about a week before the statement was issued. With some it was only three days so in theory if I'd bought something on the day the statement was issued (in a 31 day month) I could have got 59 days interest free.

A few years ago before all payments were processed automatically I sometimes got almost 90 days:)

John_Pierpoint

It was after Christmas one year, when a cash withdrawal at a hole in the wall machine got to my cc statement - but that was in the days when the exchange rate against the falling Turkish lira meant you only had to open your wallet to be a millionaire.

John_Pierpoint

SaintMark wrote: »

So why is it not Death assurance? It's not life that's assured.

Sell the positive - now which products have "death" in their trade names?

I suppose there is the American concept of "dead peasant" insurance/assurance, that enables people to take bets on other peoples date of death.

Eco_Miser

p00hsticks wrote: »

Not me, but a lot of posters don;t seem to understand the difference between SAVING and INVESTING

SAVING is not_spending (or spending less), and INVESTING is attempting to get a return on what you've saved.
I know that's not what you mean, but it seems a valid use of the words to me.

lincroft1710

Slightly off topic but a pub "landlord" is often a tenant of the brewery