Investments glossary

Annual Equivalent Rate (AER)

The AER is the interest rate for a savings account or investment product that has more than one compounding period. That is, it’s calculated under the assumption that any interest paid is included in the principal payment’s balance and the next interest payment will be based on the slightly higher account balance.

Click to rate this post!
[Total: 0 Average: 0]

Leave a Reply

Your email address will not be published. Required fields are marked *