EAR means the Equivalent Annual Rate, which is the interest rate you are charged if you go overdrawn on your current account.
EAR is a representative interest rate that shows the rate you would pay if you remained overdrawn for a year. It is determined by:
So if you are charged 2.20% for every month you're overdrawn, it isn't as simple as 2.20% x 12 because of the effect of compound interest. Instead, the EAR would actually be 29.80%!
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