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)?
If it’s 1.5%, includes a 0.5% bonus it means the normal rate is 1%
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Makes sense - I was reading it wrong, then. So after the 12mo period, you’ll only earn 1%.
Thanks for the clarification.
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