Credit glossary
AERAERAER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded once each year. As every advert for a savings product will contain an AER you can compare more easily what return you can expect from your savings over time.
Gross rateGross rateGross 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.
Debit glossary
APRAPR (annual percentage rate)The APR (annual percentage rate) gives you a single figure that includes the actual interest rate over the life of the loan as well as all the normal costs (such as administration fees or annual charges). It doesn't include additional charges such as fees for early or late repayment.
EAREAR (effective annual rate)EAR is the annual interest rate of an overdraft. This means you are charged over the year based on how often and how much you are overdrawn by, and the effect of compounding it – charging interest on interest already charged. This does not include any other fees and charges.
Representative ratesRepresentative ratesThe representative APR is the rate you will see in advertisements. This is the APR that the lender applies to most successful loan applicants, but isn't necessarily the rate you'll be offered. Lenders have to offer the representative APR rate to at least 51% of borrowers of any particular offer. Depending on your credit history, you may be quoted a lower rate or a higher one.
Total amount repayableTotal amount repayableThis is the total amount of money you have to repay over the entire life of the loan - the amount you borrowed plus all interest charges and fees.
Interest Rate Paid