Your annual summary explained | Royal Bank of Scotland current accounts

Your annual summary Your annual summary explained




Your annual summary Glossary of terms

Annual Equivalent Rate or AER – AER shows the rate of interest you'll receive over a year if the cash is left in your account for a full year. For example, if you deposit £1,000 in a savings account that pays an interest rate of AER 5%. 
At the end of the year the account balance would be £1,050, the extra £50 being the interest paid.

Equivalent Annual Rate or EAR – EAR is quoted when you are borrowing money in the form of an arranged overdraft. It gives you an idea of how much your borrowing will cost if you were to remain overdrawn for a whole year. It takes into account the rate of arranged overdraft interest being charged, how often it is charged and the effect of charging interest on interest over the year.

In September 2013 we made some changes to the name of some of our fees:

Name prior to September 2013   Name from September 2013
Unarranged Overdraft Fee Unarranged Overdraft Usage Fee
Returned Item Fee Unpaid Transaction Fee
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