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apr/aer?
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adam_john_smith
Posts: 5 Forumite
in Credit cards
does anyone know the differance between the 2 in simple terms? terms and conditions bank wbsites areway too complex to get my head around
thanks
thanks
0
Comments
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I believe...
APR is compounded interest over the year (so paying interest on interest)
AER is the simple annual rate (ie 12 x the monthly rate)
So AER is lower than APR.0 -
APR is the annual percentage rate as applied to loans and includes any compound interest and fees.
AER annual equivalent rate is the equivalent to APR but generally applied to savings and includes compounding (i.e. for monthly paid interest)0 -
Same thing. One is on debts. The other is on savings."A child of five could understand this. Fetch me a child of five." - Groucho Marx0
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