EAR stands for ‘equivalent annual rate’, and it’s similar to the AER, but rather than showing how interest will be calculated for a savings account, the EAR is used when displaying interest rates for lending, such as loans, credit cards and overdrafts.
APY stands for ‘annual percentage yield’, and it acts in a similar way to the AER, in that it factors in interest being calculated at multiple stages during a savings accounts term, giving you a clearer picture of how much interest you’ll earn. The APY is more commonly used in the USA, whereas the AER is more commonly used in Ireland.