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Happyheather wrote: »I opened a Marcus account expecting a 1.5% savings rate and my account actually shows a 1.49% rate; this feels like a misleading rate or sharp practise to me 😩
It's 1.5% AER and 1.49% gross.
The answer's in here: https://www.marcus.co.uk/uk/en/savings0 -
As above, you haven't understood the difference between AER and gross interest but you won't be shortchanged if that's what you were fearing - if you put £1,000 in and keep it there for a year (without the rate changing), you'll still end up with £1,015 not £1,014.90, thanks to the compounding effect that differentiates AER and gross interest....Happyheather wrote: »I opened a Marcus account expecting a 1.5% savings rate and my account actually shows a 1.49% rate; this feels like a misleading rate or sharp practise to me 😩0 -
Nice simple explanation but I fear many may still not get it.As above, you haven't understood the difference between AER and gross interest but you won't be shortchanged if that's what you were fearing - if you put £1,000 in and keep it there for a year (without the rate changing), you'll still end up with £1,015 not £1,014.90, thanks to the compounding effect that differentiates AER and gross interest....
It doesn't help when NatWest for example advertise their Savings Builder rate as follows:
Earn up to 1.50% AER/Gross p.a.
And they do indeed calculate monthly interest at 1.50% on the daily balance during the month.0 -
Perhaps it's an RBS Group thing, as I recall pointing out the same issue last year when Ulster Bank also erroneously quoted the same figure for both AER and (monthly-paid) gross interest....Nice simple explanation but I fear many may still not get it.
It doesn't help when NatWest for example advertise their Savings Builder rate as follows:
Earn up to 1.50% AER/Gross p.a.
And they do indeed calculate monthly interest at 1.50% on the daily balance during the month.
https://forums.moneysavingexpert.com/discussion/comment/72828180#Comment_728281800
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