Gross Interest

The annual rate of interest to be paid on an investment, security or deposit account before taxes or other charges are deducted. Gross interest is the interest bondholders receive from their investment, which will be subject to further taxes. This is opposed to net interest.

A percentage of interest must be paid on an investment, security holding or deposit in the form of deductions such as taxes, charges or fees. For example, if you had $3,000 in a savings account earning 2% interest per year, charged on a yearly basis, the gross interest would be $60. If you were taxed 35%, the net interest would be $39 and taxes would be $21.


Investment dictionary. . 2012.

Look at other dictionaries:

  • Gross interest — Interest earned before taxes are deducted. The New York Times Financial Glossary * * * gross interest gross interest ➔ interest * * * gross interest UK US noun [U] TAX, FINANCE, BANKING ► money received in interest on bank accounts or investments …   Financial and business terms

  • gross interest — interest earned before taxes are deducted. Bloomberg Financial Dictionary * * * gross interest gross interest ➔ interest * * * gross interest UK US noun [U] TAX, FINANCE, BANKING ► money received in interest on bank accounts or investments before …   Financial and business terms

  • gross interest — The amount of interest applicable to a particular loan or deposit before tax is deducted. Interest rates may be quoted gross (as they are on government securities) or net (as in most building society deposits or bank deposits). The gross interest …   Big dictionary of business and management

  • gross interest — Fin interest earned on a deposit or security before the deduction of tax. See also net interest …   The ultimate business dictionary

  • interest — the cost of borrowing money. Glossary of Business Terms What is paid to a lender for the use of his money and includes compensation to the lender for three factors: 1) Time value of money (lender s rate) the value of today s dollar is more than… …   Financial and business terms

  • Interest — The price paid for borrowing money. It is expressed as a percentage rate over a period of time and reflects the rate of exchange of present consumption for future consumption. Also, a share or title in property. The New York Times Financial… …   Financial and business terms

  • interest — Synonyms and related words: absolute interest, absorb, absorption, accent, accrued dividends, accumulated dividends, acquisitiveness, activities, activity, advantage, advocacy, aegis, affair, affairs, affect, affect the interest, agacerie,… …   Moby Thesaurus

  • gross — the total overall amount. For example, gross profit is the trading profit of a business without any deductions for business expenses. Glossary of Business Terms Before deduction of tax. Exchange Handbook Glossary The gross amount is the amount… …   Financial and business terms

  • gross — [[t]gro͟ʊs[/t]] ♦♦♦ grosser, grossest, grosses, grossing, grossed (The plural of the number is gross.) 1) ADJ: ADJ n You use gross to describe something unacceptable or unpleasant to a very great amount, degree, or intensity. The company were… …   English dictionary

  • interest — The most general term that can be employed to denote a right, claim, title, or legal share in something. In its application to real estate or things real, it is frequently used in connection with the terms estate, right, and title. More… …   Black's law dictionary

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