Why is this interest rate so high? What am I missing?

Question

It's the Lloyd's TSB Saving Account. Says it's 8.00% AER but most other accounts I've seen have been nearer 5%. Info at:

http://www.lloydstsb.com/more_offers_monthly_saver.asp

Answer 1

I think the key lies in the gross part of the fine print. I am not familiar with English tax laws but it sounds like this is a special account like an American IRA.