Car = Aer = Ear ?

S

sapmanie

Guest
Hi,
Can interest rates quoted in AER, CAR, and EAR be compared directly against each other? Thanks.
 
CAR is the rate paid on deposits.
APR/AER/EAR is the rate charged on loans.
They can be compared with each other as far as I know. Bear in mind that the net effective rate of interest on a home loan may be lower due to owner occupier mortgage interest relief and and net depost rate will be lower due to 20% DIRT charged at source.
 
This is very annoying.

I thought that all products where to be quoted using APR.

What is CAR

What is EAR

What is AER
 
Apr is only for loans to give an indication of cost

CAR- compound annual rate - takes into consideration if interest is added more then once a year

AER and EAR are exactly the same - it lets you compare rates on accounts on a annual basis (if if the accounts are longer or shorter than a year)
 
You must log in or register to reply here.
Back
Top