Annual effective rate: Difference between revisions
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(AER). | (AER). | ||
The term AER is more commonly used in the context of investment. | The equivalent notional annual rate of interest applied - for example - to current, deposit and savings accounts assuming that all interest is reinvested or compounded. | ||
AER is very similar to the Effective Annual Rate (EAR). | |||
The term AER is more commonly used in the context of retail investment and retail savings rates, though not universally. | |||
(The term EAR is used more generally in the wholesale context, both for borrowing and for investment.) | |||
== See also == | == See also == | ||
* [[Annual percentage rate]] | * [[Annual percentage rate]] | ||
* [[Compound interest]] | |||
* [[Daily rate]] | * [[Daily rate]] | ||
* [[Effective annual rate]] | * [[Effective annual rate]] (EAR) | ||
* [[Flat yield curve]] | * [[Flat yield curve]] | ||
* [[Quarterly rate]] | * [[Quarterly rate]] | ||
* [[Real]] | |||
* [[Retail]] | |||
* [[Semi-annual rate]] | * [[Semi-annual rate]] | ||
* [[Semi-annual basis]] | |||
* [[Wholesale]] | |||
[[Category:Long_term_funding]] | |||
[[Category:Cash_management]] | |||
Latest revision as of 23:43, 11 March 2023
(AER).
The equivalent notional annual rate of interest applied - for example - to current, deposit and savings accounts assuming that all interest is reinvested or compounded.
AER is very similar to the Effective Annual Rate (EAR).
The term AER is more commonly used in the context of retail investment and retail savings rates, though not universally.
(The term EAR is used more generally in the wholesale context, both for borrowing and for investment.)
