Hi there,
I am thinking of opening a savings account with Northern Rock but I have a few questions first please. When viewing the "Latest Rates" page on their website, I don't really understand the difference between the various rates displayed. For example, with the Demand Online (Annual) account, the gross % p.a. is 4%, after DIRT is 3.20% & CAR% is 4%.
In contrast, the Demand Online (Monthly) account has a gross % p.a. of 3.75%, after DIRT is 3% & CAR is 3.81%.
What exactly is the difference between the gross % p.a. & CAR%? It seems fairly clear that it's more beneficial to have interest paid yearly as opposed to monthly, but what exactly is CAR & how do they calculate this figure?
I would really appreciate any clarity on this issue. Thank you.
I am thinking of opening a savings account with Northern Rock but I have a few questions first please. When viewing the "Latest Rates" page on their website, I don't really understand the difference between the various rates displayed. For example, with the Demand Online (Annual) account, the gross % p.a. is 4%, after DIRT is 3.20% & CAR% is 4%.
In contrast, the Demand Online (Monthly) account has a gross % p.a. of 3.75%, after DIRT is 3% & CAR is 3.81%.
What exactly is the difference between the gross % p.a. & CAR%? It seems fairly clear that it's more beneficial to have interest paid yearly as opposed to monthly, but what exactly is CAR & how do they calculate this figure?
I would really appreciate any clarity on this issue. Thank you.