Cheshire BS interest rates

ANGLICANPAT

We have Cheshire Direct cash ISA's issue 2 variable interest, with bonus expiring 30/10/13. Found the historical rate chart (page 4)
http://www.thecheshire.co.uk/uploadedFiles/Resources/Documents/Savings-rate-history.pdf
to see what it is actually paying at the mo. 2.46%. ( the idea is to take out an Isa saver issue 3 now ready to transfer it to in Oct when bonus runs out) . Why does the next column to each revised rate as its shown, says 3.5% taxfree for all the dates given from beginning to end? Im just puzzled.

david78

The last column is the rate you are actually getting 3.50%.

The AER column is the "Annualised" rate, which takes into account the end of the bonus period in October. The AER has been gradually decreasing over time as the bonus end date approaches, and will eventually go to 1.00%.

rb10

The gross rate is still 3.5%, and will (almost certainly) remain at that rate until 31 October.

However, since the AER is given over the course of a year from today, it gives that as well - it's essentially an illustration of the average rate you'd get if you had money in the account until October 2013 earning 3.5%, and then left it there until April 2014 earning 1%.

Since you will be transferring out in October/November, ignore the first rate, and just look at the 3.5%.

ANGLICANPAT

Ah,right , well thank you! I did think it looked as if the rate was still 3.5% but then thought --Nah! Things that look too good to be true ,rarely are. So the underlying rate hasnt changed at all . Wow. Thanks again.