If a financial service provider doesn’t use a standardised method of comparing interest rates, it can be difficult to compare savings accounts. Arguably, the most important thing you need to know is which interest rate a financial service provider is using, i.e. whether it’s the nominal interest rate or the AER. You should also find out how often interest is calculated and whether there are any administrative fees.
AER is typically used to compare the interest rates of savings accounts, as it clearly explains the overall interest you could earn. At Raisin.ie, we use the AER to advertise the interest rates of all savings accounts offered by our partner banks as we believe that it provides you with a clearer understanding of how profitable a savings account is.