This page has reached Plain English Campaign's Crystal Mark standard. AER stands for Annual Equivalent Rate and shows what the interest would be if we paid interest and added it each year. The gross rate is the interest rate we pay before income tax is taken off. Rates may change and we pay interest each month or year. EAR stands for Effective Annual rate and represents the yearly cost of an overdraft, which takes into account how often interest is charged to the account and does not include any other fees or charges.