The Banking Act 1987 (Exempt Transactions) Regulations 1997

ASSUMPTIONS FOR CALCULATIONS

4.  For the purpose of calculation of the compounded annual rate—

(a) it shall be assumed that there are no other associated costs or benefits arising during the period in which the account is held;

(b) compounded annual rates shall be quoted to two decimal places, except in cases where the final digit or digits is/are zero(s), in which case it/they may be omitted. The decimals shall be rounded up or down to the nearest 0.01% viz. 12.154% should be rounded down to 12.15%, 12.147% should be rounded up to 12.15%, 12.155% should be rounded up to 12.16%. For the purpose of rounding to two decimal places, the third digit after the decimal only should be taken into consideration and subsequent digits ignored. Where the third and fourth decimal places are 50, the figure should be rounded up. For example, 12.5650% becomes 12.57% but 12.5649% must not be rounded to 12.565% and then 12.57%.