Effective Annual Cost (EAC)

From 1 October 2016 all banks, asset managers and insurers introduced a new standard measure for calculating the full costs of buying, selling and holding a financial product over time called the Effective Annual Cost (EAC). The EAC is there to help consumers better understand all the costs involved in their purchase and make better informed decisions in line with Outcome 3 of the Treating Customers Fairly (TCF) framework.

 

We have developed a web based calculation tool for you to use. This EAC calculation tool will be available for you to use on our website.