Question & Answers

What is the difference between the gross and net interest rate?

Anjani
1 Vote
5789 Views
Follow
12 Followers
Jul 8, 2014 by Anjani
Category: Banking

Tags:
RPH052012
0 Votes
RPH052012
Feb 22, 2015  
This is a term used in many different phrases. A gross interest rate is the publicized gains expected based on the financial contract.

The net interest rate would be the actual capital gains made after administrative fees are deducted for managing your account and per transaction fees assessed based on the investor's actions during the period of investing. This could be things such as early withdrawals, failure to maintain a negotiated balance etc...