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Lloyds TSB

School Banking account important information

Gross Rate – The contractual rate of interest payable before deduction of income tax at the rate specified by law.

Net Rate – The rate of interest which would be payable after allowing for the deduction of income tax at the rate specified by law.

AER – The AER stands for Annual Equivalent Rate and is the notional rate which illustrates the gross or tax free rate as if paid and compounded on an annual basis. As every advert for a savings product will contain an AER you will be able to compare more easily what return you can expect from your savings over time.

 

Interest is normally paid at the net rate unless the account falls within an exempt category or the account-holder qualifies to receive interest gross. Interest rates may vary from time to time. All rates are per annum except where stated.