AER stands for Annual Equivalent Rate. It shows the rate of interest a saver will receive over a year, on the assumption that the cash is left in the account for the full year without any withdrawals.
Compound interest is interest paid on the initial principle as well as the accumulated interest on money you have invested. You earn interest on the money you deposit, and on the interest you have already earned.
The gross interest rate is the amount of interest you will earn before income tax is deducted. Following the introduction of the new Personal Savings Allowance in April 2016 , all interest is now paid gross. Basic-rate taxpayers can earn £1,000 of savings interest without paying any tax on it. Higher-rate taxpayers can earn £500. All Hodge accounts are paid gross, however you may be liable to pay tax on interest in accordance with HMRC guidelines.
Your interest will be paid into your Hodge account, or to the bank account from which the deposit was originally made. You can choose which you would prefer.
Your interest, if paid annually, is on on the anniversary of account opening of your account and at the end of the term.
Your interest, if paid monthly, is paid on the last working day of the month , monthly thereafter and at the end of the term.
If your account term is one year or less, then your interest will be paid at the maturity of your account.
Our current interest rates can be seen here, or you can call our Customer Service Team on 0800 028 3746 and we can confirm them for you.