How is interest calculated?

The AER value, or Annual Equivalent Rate, is used to show what you would earn in interest from different savings accounts over a year.

The percentage shown is not what you will earn daily based on your current savings.

For example, if you had £1000 in your Savings with a rate of 3% AER, in a month you would earn £2.50 and over a year you would make £30.

Click here to use this interest calculator on the Bank of England's website to calculate your potential interest earnings.

Updated on: 18/09/2024