Understanding interest rates
Get to grips with interest rate jargon
When you're looking at interest rates on savings accounts, you'll be faced with
some terms that describe the type of rate being illustrated. Here's a quick guide
to interest rate jargon.
Gross rate means that we will not deduct tax automatically from your interest. You are responsible for paying any tax due to HM Revenue and Customs.
AER means Annual Equivalent Rate. AER illustrates what your interest rate would be if interest was paid and compounded each year and allows you to easily compare different offers.
For an account that pays annual interest, the AER will be the same as the gross rate.