Gross Interest

The gross interest rate is the interest rate that is applied to a bank account before any taxes or charges are deducted. It is a flat interest rate on the initial money invested. Comparing savings accounts purely by the gross interest rate does not reflect the effects of compounding the interest on the account, nor does it take into account how often interest is paid on the account.

See also:

  • Tax Allowance
  • Tax Avoidance