Chase boosted saver

BACKTOBACK

Okay so I know I'm wrong before I write this but I can't understand why? 
I have a chase boosted saver at 4.55% aer. The boost is for six months then drops by 1.5%.
If the headline rate of 4.55% is only for six months how can the annual equivalent rate be the same?
six months of 4.55 followed by six months of 3.05 is not an annual rate of 4.55%?
What am I missing? 

refluxer

You could apply the same thinking to any savings account with a variable rate. AER is just used for comparison purposes across all different types of savings accounts and, in the case of an account with a variable interest rate, it shows what that account would earn if the rate in place at that particular time stretched to one year (and interest was compounded), even though that rate isn't guaranteed. 

In this case, Chase's rate isn't even guaranteed for 6 months because it tracks the base rate. It's only the boost (bonus) that's guaranteed.

35har1old

BACKTOBACK said:

Okay so I know I'm wrong before I write this but I can't understand why? 
I have a chase boosted saver at 4.55% aer. The boost is for six months then drops by 1.5%.
If the headline rate of 4.55% is only for six months how can the annual equivalent rate be the same?
six months of 4.55 followed by six months of 3.05 is not an annual rate of 4.55%?
What am I missing? 

It was 4.8%