246that it was not used as a money transmission account, but it would not be appropriate to limit
247withdrawals too tightly. Any restrictions and charges (howsoever calculated and described)
248must be stated in the main part of the advertisement and not in the supporting text.
250If the terms of the product limit the amount of cash that can be withdrawn in a single
251transaction, that must be clearly stated in the main part of the advert, together with the
252amount of the limit. Again, as with Section 8a, this refers to a particular limitation on the
253product itself, and not to a general floor limit imposed by the institution across the board, for
254example, for security or other practical reasons.
258Calculation of the Annual Equivalent Rate (AER)
259a) The most general case of the calculation is the rate of interest which, if applied each
260 year to the deposits made by the customer, would result in the same end-value as the
261 Gross Interest Rates and interest bonuses (if any), i.e. the solution to the following
267 Dn 1 + = Dn (1+ ) ( = T )
274 is the Annual Equivalent Rate
275Dn is the deposit to be made at the start of year n
276Ij is the interest rate (including bonuses, if any) payable at the end of year j
277m is the number of years for which the product has to be held
278T is the amount the depositor will receive at the end of year m
281If deposits are made at more frequent intervals than whole years, the calculation can be
282made using monthly interest and the result expressed as an annual rate using the formula
285The equation, in its general form, is soluble only by iterative computation. For specific cases,
286general solutions are available and these can be used.
288b) If only one deposit is made at the start of the period, then the AER is:
295 = m (1+ ) - 1 100