Interest "p.a." as opposed to "APR"

Robert_Sterling

I continue to think that a Pseudo APR as I have described it has considerable value and that an APR based on a 25 year guess about what will happen in the next 25 years is of no value whatever.

MarkyMarkD

And I concur. Maybe in another dozen years the KFI regulations will be changed to match our common-sense approach.

realaledrinker

Here's a good one illustrating the positives of using APR;

Co-op Bank Gold Base Rate for Life Credit Card

Interest rate p.a. at the moment 5.1% p.s. (compound interest causing the 0.1% difference??)

BUT £10 per month fee!!!

APR........... 21.5%

Astaroth

Yes, Natwest Black card has an apr of 11% or so if you exclude the £500 a year fee - the fee is waived if you spend over X a month but for APR calculations you must include fees and so their APR works out at 55% or so