Whats the difference between, 'AER/Gross' & 'AER'?

lettucekl

So HSBC just sent me a letter saying that my Access Saver Account is changing to Flexible Saver Account, not sure what the difference is but i did notice in the Interest Rate, im currently getting '0.15% AER/Gross' (crap rate i know!!!) and the new account will be '0.15% AER'.

In laymen terms whats actually different between 'AER/Gross' and just 'AER'?

eskbanker

It's explained at https://www.moneysavingexpert.com/banking/interest-rates/#AER

Essentially if interest is paid annually then they should be the same, but if paid monthly gross should be quoted as a lower figure than AER.

However, in this case the interest rate is so poor that the variance is too negligible to differentiate when only quoting figures to two decimal places....

lettucekl

Ok thanks, nothing to worry about then. Is there a better shaving account or ISA what gives worth while interests without too much risk?

ColdIron

Investments carry risk but if you don't want anything too hairy then Google the best a man can get

eskbanker

lettucekl wrote: »

Ok thanks, nothing to worry about then. Is there a better shaving account or ISA what gives worth while interests without too much risk?

Lots of better options at http://www.moneysavingexpert.com/savings/savings-accounts-best-interest

In terms of customer experience and product appeal, HSBC is more like waxing than shaving (so I believe....)

grumiofoundation

lettucekl wrote: »

Ok thanks, nothing to worry about then. Is there a better shaving account or ISA what gives worth while interests without too much risk?

You might also want to look at regular savers

https://www.moneysavingexpert.com/savings/best-regular-savings-accounts/

If first time buyer and you are looking at saving for house purchase is lifetime isa (and help to buy isa) as well.

https://www.moneysavingexpert.com/savings/lifetime-isas/

Alexland

lettucekl wrote: »

Is there a better shaving account

The best a man can get even do a regular shaver:
https://www.gillette.co.uk/razor-subscription.list