Best bank account for 15 year old ?

gt94sss2

AndyGrayUK wrote: »

So the 5.88% AER is paid every year and the 5.25% spread over the year?

The AER includes the effect of compound interest.

If there was a bank account which paid 5.25% and credited interest annually - this would mean its AER was also 5.25% (i.e. the true annual rate) - so £100 would be worth £105.25 in the account after a year.

However, if there was a bank account which paid 5.25%/year but paid interest quarterly - this would mean its AER was 5.88% (i.e. the true annual rate) - so £100 would be worth £105.88 in the account after a year.

The difference reflects the impact of compound interest - basically you receive more interest interest each quarter as you will also be getting interest on the interest they have already credited to your account.

Regards
Sunil

adilramzan

Hi i would recomend santander as they open your account and give you your account details in under 3 days

9217niall

adilramzan wrote: »

Hi i would recomend santander as they open your account and give you your account details in under 3 days

There's really no need to bring up a thread that is so old and has already been solved. Thanks.