Private

Deposit Account/What is the difference between gross interest rate and net interest rate?

The gross interest rate of the deposit account is the interest rate before the deduction of taxes due to the state. The net interest rate, on the other hand, is derived from the gross interest rate minus the 26 percent tax applied to it (as required by current regulations) and represents the amount received by the account holder when the locked-in principal is repaid. For example, a gross rate of 1.00% corresponds to a net interest rate of 0.74%.