Santander easy access 5.2% - only got 5.08%

jak22

It's not the difference between gross and AER, it's the difference between monthly and annual interest rates - interest is calculated using gross rates as they're paid without tax deducted so gross doesnt mean monthly and an AER is a comparative figure not the rate used in paying interest. But it's not just customers unsure, some banks / building society pages and emails randomly use gross and AER.

EthicsGradient

jak22 said:

It's not the difference between gross and AER, it's the difference between monthly and annual interest rates - interest is calculated using gross rates as they're paid without tax deducted so gross doesnt mean monthly and an AER is a comparative figure not the rate used in paying interest. But it's not just customers unsure, some banks / building society pages and emails randomly use gross and AER.

But "gross" is now being used more or less solely for "monthly". No account pays interest with tax deducted these days.

MACKEM99

Wheres_My_Cashback said:

cs95aam said:

Wheres_My_Cashback said:

I wonder how many times this has been posted over the past 2 weeks ?

5.08 is Gross
5.20 is AER

I’m sorry but I did a search for Santander before I posted and I couldn’t see anything. Thank you I really appreciate it. I’ve got so much on at the moment my head is spinning 😵‍💫 which doesn’t help. 

No need to be sorry, a few years ago I may well have queried something like this, but having spent time here I have learnt to always check and understand key facts about financial products. I was more thinking out loud when I commented on how many as it's been a very popular question recently ;-)

I'd imagine the vast majority of people with savings accounts won't know the difference between Gross and AER either.

Or think that a monthly saver that says 6.5% will pay this rate for every amount put in.  😃