Do Raisin Bank understand the difference between AER and Gross interest rate?
Which isn't my idea of AER.
When you drill into the "view details" they seem to get it right:
A little worrying that they can't get this right?
Comments

Hopeless..... they should stick to currant accounts6

It appears Raisin's approximations use the AER figure, even for accounts paying simple interest.0

1.0525 compounded for two years = £107.8 of interest. (actually £107.75)
1.0539 plain interest not compounded in second year = £53.9 of interest per year = £107.8
I'm not sure i see the problem? as both methods give the same interest payable.
BTW i think Raisin is Sharia banking?
Their website say they cant offer interest rates... specifically saying they don't offer AER's just expected profits  but then they go on to list a bunch of AER's against their sharia savings accounts.
e.g. see here:
https://www.raisin.co.uk/banking/alrayanfaq/
I guess that's because they have to offer equivalent AER by UK rules?
But are they somehow doing it a little different?
1 
Onthecoast said:
1.0525 compounded for two years = £107.8 of interest. (actually £107.75)
1.0539 plain interest not compounded in second year = £53.9 of interest per year = £107.8
I'm not sure i see the problem? as both methods give the same interest payable.The green "+ £105.00" approximation calculated on Raisin's web interface. Raisin uses the AER instead of gross, even for accounts paying simple interest.
Onthecoast said:BTW i think Raisin is Sharia banking?
Raisin is not a bank and doesn't offer any savings products directly. They're a 'savings marketplace' allowing customers to apply for and manage savings accounts from their 35+ partner banks via one single login.
0 
AmityNeon said:Onthecoast said:
1.0525 compounded for two years = £107.8 of interest. (actually £107.75)
1.0539 plain interest not compounded in second year = £53.9 of interest per year = £107.8
I'm not sure i see the problem? as both methods give the same interest payable.The green "+ £105.00" approximation calculated on Raisin's web interface. Raisin uses the AER instead of gross, even for accounts paying simple interest.
We are born naked, wet and hungry...Then things get worse.
.withdrawal, NOT withdrawel ..bear with me, NOT bare with me
.definitely, NOT definately ......separate, NOT seperate
should have, NOT should of .....guaranteed, NOT guarenteed0 
grumbler said:AmityNeon said:Onthecoast said:
1.0525 compounded for two years = £107.8 of interest. (actually £107.75)
1.0539 plain interest not compounded in second year = £53.9 of interest per year = £107.8
I'm not sure i see the problem? as both methods give the same interest payable.The green "+ £105.00" approximation calculated on Raisin's web interface. Raisin uses the AER instead of gross, even for accounts paying simple interest.
I don't understand. If 'simple interest' means that they pay 2*5.39%=10.78% at the end of 2 years, this is exactly £107.80. And, recalculated to AER, this becomes 5.25%.
Indeed, the account pays simple interest at 5.39% gross, so how do you think Raisin is calculating +£105.00? It's not just this account either; Raisin appears to always calculate their interest approximations using the AER, but the AER is not a figure that should be used in calculating gross interest.
0 
Where do you see £105? I see £1,107.80, i.e. £107.80 interest, that corresponds to 5.39% gross and means 5.25% AER.
We are born naked, wet and hungry...Then things get worse.
.withdrawal, NOT withdrawel ..bear with me, NOT bare with me
.definitely, NOT definately ......separate, NOT seperate
should have, NOT should of .....guaranteed, NOT guarenteed0 
grumbler said:Where do you see £105? I see £1,107.80, i.e. £107.80 interest, that corresponds to 5.39% gross and means 5.25% AER.1

grumbler said:
Where do you see £105? I see £1,107.80, i.e. £107.80 interest, that corresponds to 5.39% gross and means 5.25% AER.
The whole point of this thread was to contrast Raisin's (dynamic) calculative error compared to the correct (static) information revealed when "View details" is clicked. £105.00 isn't @dalts99's idea of 5.25% AER, but £107.80 is.
2
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