1Annual Equivalent Rate (AER) Practice Note
6Guidance for banks and building societies
7UK Finance, 1 Angel Court, London EC2R 7HJ
8The Building Societies Association, York House, 23 Kingsway, London WC2B 6UJ
13This “Annual Equivalent Rate (AER) Practice Note ” (Practice Note), draws together key
14points from, and replaces the “Code of Conduct for the Advertising of Interest Bearing
15Accounts” (the Code) and the “Calculation of the Annual Equivalent Rate (AER) appendix to
16the Code”, which were in place between 1985 and 2024. It is published jointly by UK Finance
17and the Building Societies Association (BSA).
19This Practice Note is for guidance only. Banks and building societies are free to reach their
20own conclusions on interpretation and, for that reason, this document is intended primarily
21for the use of banks and building societies and their professional advisers. However, a copy
22of this Practice Note has been sent to the Financial Conduct Authority, which is responsible
23for monitoring compliance with the Payment Services Regulations 2017 (PSR) and its
24Handbook, in particular the Banking Conduct of Business Sourcebook (BCOBS).
291. The terms of this Practice Note apply to the advertising of all interest bearing accounts
30maintained within the United Kingdom by banks and building societies.
32'Interest bearing accounts' includes current accounts which pay interest on credit balances.
36Statement of Interest Rates
372. Where interest rates are advertised, these must be described as follows:
43 c. Z% Annual Equivalent Rate ("AER")
← Previous
Page 1 of 20
Next →