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Rates — Savings, Borrowing and Rewards

Entirely fictional. Thoroughly nutty. Welcome to another branch of our story.

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A fictional bank, a real sense of humour. All people, places, products and figures are invented. No real banking or financial advice. About this demo.

AcornBank demo rates and charges

Real-looking numbers, fictional products. These rates are invented for this demonstration, not collected from live bank offers, and they are not available to anyone.

ProductRangeRate, reward or chargeAccess or term
Current accounts0.00% credit interest; £0.00 monthly account feeDaily payment and transfer scenarios; no real payment service
Current accounts0.00% credit interest; £6.00 monthly account feeRoutine business payment scenarios; no real transfers or merchant services
Current accounts29.9% EAR (variable), with the first £50.00 interest-freeUp to £1,000 arranged borrowing; the first £50 is interest-free in this demo model
Savings3.75% AER / gross p.a. (variable)Unlimited withdrawals in the demo; no notice period
Savings4.40% AER / gross p.a. (fixed)No top-ups; early closure allowed in the model with a 90-day interest deduction; otherwise principal and interest at maturity
Savings3.60% AER / tax-free (variable)Unlimited withdrawals in the demo; flexible, so money withdrawn can be replaced within the same demo tax year
Savings4.30% AER / tax-free (fixed)No withdrawals during the 12-month term in the model; closing or transferring early costs a 90-day interest deduction
Savings4.60% AER / gross p.a. (fixed)No top-ups or withdrawals during the 12-month term; principal and interest available at maturity
Savings4.75% AER / gross p.a. (variable, tracking the demo Forest Base Rate of 4.50% plus 0.25%)No top-ups or withdrawals during the 24-month term; principal and interest available at maturity
Mortgages4.59% fixed for 2 years; then 6.49% assumed variable rateMonthly capital-and-interest repayments over 25 years in the illustration
Loans6.9% APR representative (fixed); £1,000.00 to £25,000.00 over 1 to 7 yearsFixed monthly repayments over 1 to 7 years; early settlement allowed with up to 58 days’ interest in the model
Loans5.9% APR representative (fixed); £7,500.00 to £40,000.00 over 2 to 10 yearsFixed monthly repayments over 2 to 10 years; early settlement allowed with up to 58 days’ interest in the model
Loans7.9% APR representative (fixed); £3,000.00 to £30,000.00 over 1 to 5 yearsFixed monthly repayments over 1 to 5 years; the customer owns the wheelbarrow from day one; early settlement with up to 58 days’ interest
Credit cards0.50% cashback; 24.9% illustrative APR (variable)0.5% cashback on eligible purchases, capped at £10 per month; borrowing can cost more than the reward
Credit cards1.00% cashback; 27.9% illustrative APR (variable); £24.00 annual fee1% cashback on eligible purchases, capped at £25 per month, for a £24 annual fee; borrowing costs more than the reward
Credit cards0% on purchases for 18 months, then 24.9% illustrative APR (variable)0% on purchases for 18 months from opening, then 24.9% APR (variable); missing a payment ends the offer in the model
Credit cards0% on balance transfers for 24 months with a 3% fee, then 26.9% illustrative APR (variable)0% on balance transfers for 24 months with a 3% transfer fee, then 26.9% APR (variable); new purchases are not interest-free
Credit cards34.9% illustrative APR (variable); credit limits from £250.00Small limits, a high APR and no fee; the story rewards paying the statement in full every month
Investments3.90% AER / gross p.a. (variable)Unlimited withdrawals; annual interest remains in the pot unless removed
Investments0.45% total annual charge; growth not guaranteed, illustrated at 2%, 5%, 8%Sell holdings at any time; story proceeds arrive within four working days; the value can fall as well as rise
Investments0.45% total annual charge; growth not guaranteed, illustrated at 2%, 5%, 8%Withdraw at any time; money taken out cannot be replaced in the same demo tax year; the value can fall as well as rise
Investments0.50% total annual charge; 20% demo tax relief on contributions; growth not guaranteedNo withdrawals before age 57 in the model; from then, up to 25% as a tax-free lump sum and the rest as taxable income
InsuranceFrom £9.50 a month; £100.00 excess; cover up to £330,000.00Claims in the story are reported to the branch and paid less the excess; a 14-day cooling-off period applies in the model
InsuranceFrom £5.95 a month; £75.00 excess; cover up to £5,000,000.00Any number of trips of up to 31 days during the policy year; claims paid less the excess
InsuranceFrom £8.20 a month; £0.00 excess; cover up to £300,000.00No cash value; the sum is paid on a valid claim during the term and premiums stop when the term ends

Savings: interest after 12 months

Interest earned in the first year on a single opening deposit. Where a deposit exceeds a product’s balance cap or ISA allowance the cell says so instead of inventing a figure.

Savings productDemo AER£1,000 deposit£5,000 deposit£10,000 deposit£25,000 deposit£50,000 deposit
3.75%£37.50£187.50£375.00£937.50£1,875.00
4.40%£44.00£220.00£440.00£1,100.00£2,200.00
3.60%£36.00£180.00£360.00Above capAbove cap
4.30%£43.00£215.00£430.00Above capAbove cap
4.60%£46.00£230.00£460.00£1,150.00£2,300.00
4.75%£47.50£237.50£475.00£1,187.50£2,375.00
3.90%£39.00£195.00£390.00£975.00£1,950.00

Assumptions: one opening deposit, no additions or withdrawals, no fees or tax, and the stated rate for the whole period. Interest is credited once at each anniversary and rounded to the nearest penny, with half-pennies rounded up. AER and gross p.a. match in this annual-credit model.

Savings: how £10,000 could grow over five years

Savings productDemo AERAfter 1 yearAfter 3 yearsAfter 5 yearsTotal interest
3.75%£10,375.00£11,167.71£12,020.99£2,020.99
3.60%£10,360.00£11,119.35£11,934.36£1,934.36
3.90%£10,390.00£11,216.22£12,108.14£2,108.14

The variable rate is held constant solely to show annual compounding. Fixed-term products are excluded because their rates end at maturity with no promised renewal rate.

Investments: projected value of £10,000 after ten years

Investment productAnnual chargeLow growth 2%Mid growth 5%High growth 8%
0.45%£11,662.70£15,604.16£20,706.38
0.45%£11,662.70£15,604.16£20,706.38
0.50%£11,605.41£15,529.69£20,610.32

A single lump sum, no further contributions, growth applied monthly after the annual charge, and no tax inside the wrapper. The value can fall below £10,000.

Insurance: monthly premiums

PolicyFromExcessCover up to
£9.50 a month£100.00£330,000.00
£5.95 a month£75.00£5,000,000.00
£8.20 a month£0.00£300,000.00

Demo premiums for a story customer aged 35 with no claims; real premiums depend on real details.

Borrowing: what the demo charges

Borrowing productDemo rateScenarioModel cost
4.59% fixed for 2 years; then 6.49% assumed variable rate£200,000 over 25 years£1,121.91 a month for 24 months, then £1,334.37
6.9% APR representative (fixed)£10,000 over 60 months£196.56 a month; £1,793.43 interest
5.9% APR representative (fixed)£10,000 over 60 months£192.15 a month; £1,529.04 interest
7.9% APR representative (fixed)£10,000 over 60 months£200.99 a month; £2,059.14 interest
0.50% cashback; 24.9% illustrative APR (variable)£1,200 repaid over 12 months at the standard rate£150.82 interest; £1,350.82 repaid
1.00% cashback; 27.9% illustrative APR (variable); £24.00 annual fee£1,200 repaid over 12 months at the standard rate£167.68 interest; £1,367.68 repaid
0% on purchases for 18 months, then 24.9% illustrative APR (variable)£1,200 repaid over 12 months at the standard rate£150.82 interest; £1,350.82 repaid
0% on balance transfers for 24 months with a 3% fee, then 26.9% illustrative APR (variable)£1,200 repaid over 12 months at the standard rate£162.09 interest; £1,362.09 repaid
34.9% illustrative APR (variable); credit limits from £250.00£1,200 repaid over 12 months at the standard rate£206.03 interest; £1,406.03 repaid
29.9% EAR (variable), with the first £50.00 interest-free£500 overdrawn for 30 days£9.78 interest

Each product page carries the full schedule with its assumptions. A cost is not a return.

How to read the figures

AER (annual equivalent rate) measures annual interest including compounding where applicable. Our savings credit interest annually, so gross p.a. and AER match; tax-free means the demo ISA wrapper deducts nothing. Fixed rates apply only for their stated term; multi-year variable projections hold today’s demo rate constant as an assumption.

APR (annual percentage rate) describes the cost of credit-card and loan borrowing; the examples use an equivalent monthly rate derived from it. EAR (effective annual rate) describes overdraft interest; the overdraft examples convert it to a daily equivalent. The mortgage model recalculates payments after the initial fixed rate and includes an upfront arrangement fee in its total cost. Growth scenarios for investments are illustrations after charges, not predictions. These different measures must not be treated as interchangeable returns.

Rate changes in the story

Every table above is calculated from the live product records, so when an author changes a rate the figures follow. Fixed rates, notice periods and terms are shown on each product page; see the savings range or the help hub. No figure on this site is a quotation, an offer or a prediction of what any real bank will pay or charge.

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AcornBank: entirely fictional banking, exceptionally committed squirrels.