AER stands for Annual Equivalent Rate. It shows what the interest rate would be if interest were paid and compounded once each year, helping you compare savings products with different compounding periods.

How does compounding affect AER?

Compounding allows you to earn interest on your interest. AER reflects this by showing the total return over a year, making it more accurate than a simple gross rate.

Can I use this calculator to compare savings accounts?

Yes, this calculator lets you convert between gross rates and AER, so you can compare different savings accounts on a like-for-like basis.

AER Calculator: Convert Gross to AER

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Rate details

Gross interest rate, annual

Compound interest every: