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%

masonic

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? 

"But officer, you say I was doing 90 mph, but you stopped me at the end of a 20 minute journey. I wouldn't have travelled more than 30 miles in an hour."

Rollinghome

Can understand people getting confused with Chase.  They're forever coming up with short-term wheezes.  

Like the interest paid on current accounts, until it didn't.  The cash-back on purchases, but now only on food and fares or something  similar. The whacky "round-up" account that earns pennies; the booster rates but only customers with low balances; and the booster rates that aren't available for existing savings accounts but require the faff of opening a new account and then lasts for less than a year.

Would be appreciated if they'd offer consistently competitive rates, and spend a bit on upgrading their glacial server instead. 

It's not a bank for grown-ups, and while I'm happy to take advantage of anything of significant value, none of their games would encourage me to use them as my main bank.