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What does the AER mean when referring to the Savings Rate of Interest?

AER stands for 'Annual Effective Rate'.  
In the United States, this is sometimes know as the APY (Annual Percentage Yield).

The AER is the rate of Interest applied to an investment when compounding occurs on more than one occasion throughout a year, i.e. daily, monthly, annually, or other frequency.

 

 

 

 

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