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 or EAC. The EAC exists to help consumers understand all the costs involved in their purchase and make more informed decisions in line with the third outcome of the Treating Customers Fairly (TCF) framework.

 

We have developed a web-based calculation tool for you to use.