Login or register (free and only takes a few minutes) to participate in this question.You will also have access to many other tools and opportunities designed for those who have language-related jobs (or are passionate about them). Participation is free and the site has a strict confidentiality policy.
Spanish to English translations [PRO]
Bus/Financial - Finance (general) / interest rates | | Spanish term or phrase: tasa anual equivalente (TAE) | APR or AER? (I know this is in the glossary, but there's a lot of confusing information out there on this subject.)
Is it APR for borrowings (mortgages, etc.) and AER for interest-bearing accounts and deposits?
Or simply that APR includes costs and is equally applicable to borrowing and saving?
Does context (e.g. advertising vs. financial reporting) affect which is preferred?
Expert advice needed!
Thanks in advance. |
| SteveWKudoZ activityQuestions: 6 (none open) Answers: 505
| Local time: 20:27
|
| | APR and AER | Explanation:
I think you are right. TAE is used for both borrowings and savings in Spanish. Please see the following glossary entries:
AER - this stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded each year. As every advert for a savings product which quotes an interest rate will contain an AER, people will be able to compare more easily what return they can expect from their savings over time.
APR - this refers to Annual Percentage Rate. It is intended to give people a more accurate idea of how much they are being charged when they borrow money. It allows people to compare the total cost of borrowing money for different types of loan, and lengths of time.
I don;t think the TAE is APY. Please see this for more info on the difference between APR, APY and AER:
http://www.investopedia.com/articles/basics/04/102904.asp
--------------------------------------------------
Note added at 7 hrs (2006-11-14 14:51:05 GMT)
--------------------------------------------------
I'm not sure of your context, but I wouldn't worry about APY, as I think AER and APR are what you will probably need. I have a dictionary definition for APR which says it is for both investments and borrowing. Perhaps we have a trend these days to use both rather than only APR in the past and the dictionary reflects former usage (and some websites too), but I honestly don't know. However, take a look at this site (one I use regularly myself to find out about money issues in the UK), where you can see that AER is stated for savings and APR for credit cards and loans. this seems to be the current usage.
http://www.fool.co.uk/savings/compare-savings-accounts.aspx |
| Selected response from:
  Nikki Graham
United Kingdom
Local time: 19:27
| Grading comment Again, thank you.
4 KudoZ points were awarded for this answer |
| |
| Discussion entries: 0 |
|---|
Automatic update in 00:
|
5 mins confidence:  APR
Explanation:
..YOU WERE RIGHT!
Es posible que si toma un préstamo con tasas de interés y costos muy altos, ... La TAE (APR en inglés) del préstamo excede por más del 8% la tasa de las ...
www.ftc.gov/bcp/conline/spanish/homes/s-hoepa.htm
| bigedsenior
Local time: 11:27
Works in field
Native speaker of:  English
PRO pts in category: 247
|
| | Notes to answerer
Asker: Thank you, biged. But of APR is "with costs", would it not be better to use APY for saving products, e.g. "APR is a term used with regards to deposit accounts as well. However, when dealing with deposit accounts, Annual percentage yield or APY is the number to be quoted to consumers for comparison purposes" http://en.wikipedia.org/wiki/Annual_percentage_rate
|
| | Login to enter a peer comment (or grade) |
1 hr confidence: 
1 hr confidence: peer agreement (net): +3 APR and AER
Explanation:
I think you are right. TAE is used for both borrowings and savings in Spanish. Please see the following glossary entries:
AER - this stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded each year. As every advert for a savings product which quotes an interest rate will contain an AER, people will be able to compare more easily what return they can expect from their savings over time.
APR - this refers to Annual Percentage Rate. It is intended to give people a more accurate idea of how much they are being charged when they borrow money. It allows people to compare the total cost of borrowing money for different types of loan, and lengths of time.
I don;t think the TAE is APY. Please see this for more info on the difference between APR, APY and AER:
http://www.investopedia.com/articles/basics/04/102904.asp
--------------------------------------------------
Note added at 7 hrs (2006-11-14 14:51:05 GMT)
--------------------------------------------------
I'm not sure of your context, but I wouldn't worry about APY, as I think AER and APR are what you will probably need. I have a dictionary definition for APR which says it is for both investments and borrowing. Perhaps we have a trend these days to use both rather than only APR in the past and the dictionary reflects former usage (and some websites too), but I honestly don't know. However, take a look at this site (one I use regularly myself to find out about money issues in the UK), where you can see that AER is stated for savings and APR for credit cards and loans. this seems to be the current usage.
http://www.fool.co.uk/savings/compare-savings-accounts.aspx
Reference: http://www.bba.org.uk/bba/jsp/polopoly.jsp?d=139&a=451
Reference: http://www.answers.com/topic/annual-equivalent-rate-aer
| Nikki Graham
United Kingdom
Local time: 19:27
Works in field
Native speaker of:  English
PRO pts in category: 72
|
| | | Notes to answerer
Asker: Thank you very much, Nikki
Asker: Thank you for the investopedia link, Nikki. I just wonder... The article seems to suggest that APR and APY are equally applicable to lending or borrowing, or at least makes no distinction. I'm sure that isn't correct. In general, there seems to me to be a lot of misleading information on the WWW.
Asker: Thanks again, Nikki, I really appreciate your help! I've certainly noticed AER much more in recent years and suspect there's a historical dimension. Until recently, APR was there was in the UK! (tho it didn't seem to be quite right for TAE) If you're translating for a bank, you really do need to know what you're talking about, even if it is a muddy area... :-)
|
|
| KudoZ™ translation helpThe KudoZ network provides a framework for translators and others to assist each other with translations or explanations of terms and short phrases. See also: Search millions of term translations  |
| |
The translation workplace 
