AER
noun[S]
BANKING,FINANCEukusabbreviationforannualequivalentrate: therateofinterestthat aninvestorwillreceiveif theyleaveaparticularamountofmoneyin anaccountfor oneyear:
The 7%interestrateisvalidfor sixmonths, and thendropsto 6% for sixmonths, making an AER of 6.5% for theyear.