801Note: It is possible that the AER may very slightly depending on when the initial deposit is
802made relative to the first interest payment date. Where this is the case, either the
803assumption about this relationship should be clearly stated (see AER Guideline A7 above) or
804the lowest potential result should be used (this usually results when the period from initial
805deposit to first interest period is at a maximum).
809Additional Worked Examples linked to Specific AER Guidelines
812Short-term deposit with higher than normal interest rate.
814Guideline A4 explains that all interest paid is treated as if it is invested and earns a rate of
815interest equal to that being earned on the deposit. It goes on to say, “If the deposit has a
816very short term (for example, a six month bond), for AER purposes it is assumed, again for