Savings accounts - interest


Can someone explain what it means when a bank say, for example:

x% AER variable, includes a y% fixed rate bonus for 12 months.

So is this offering an interest of x+y% for the first year (ignoring for simplicity, that the initial x% is variable)?

(Only available in amateur ) #2

If it’s 1.5%, includes a 0.5% bonus it means the normal rate is 1%


Makes sense - I was reading it wrong, then. So after the 12mo period, you’ll only earn 1%.

Thanks for the clarification.