Annual effective rate: Difference between revisions
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imported>Doug Williamson (Layout.) |
imported>Doug Williamson (Update - source - Association of Corporate Treasurers - email from Naresh Aggarwal 16 Feb 2022.) |
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(AER). | (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 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. | (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]] | ||
* [[Retail]] | |||
* [[Semi-annual rate]] | * [[Semi-annual rate]] | ||
* [[Semi-annual basis]] | * [[Semi-annual basis]] | ||
* [[Wholesale]] | |||
[[Category:Long_term_funding]] | [[Category:Long_term_funding]] | ||
[[Category:Cash_management]] | [[Category:Cash_management]] | ||
Revision as of 15:53, 16 February 2022
(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.)
