What is interest?

Have you thought about putting your money into a bank or building society?

Because if you do, some accounts will pay you when you’ve got money in your account. This is called interest and is paid into your account at certain times of the year.

It’s usually written as a percentage like this - 1% AER/gross p.a (variable).

The AER part, stands for Annual Equivalent Rate and shows the rate of interest earned over the year, when money is left in your account. You can also use it to compare interest rates between current and savings accounts.

But remember, try to keep some money in your account as once you hit zero you won’t earn interest.

Make the most of any interest payments by checking your tax status, as the interest you earn, may be tax free. Meaning you get to keep it all!

So start managing your money today and make your account work for you.