what is gross interest 
gross interest is 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 often the headline interest rate attached to a fixed income security e g a bond or cd a loan or a deposit account gross interest is expressed as a percentage and can be contrasted with net interest which is the rate of interest earned after taxes fees and other costs are deducted as a result gross interest will always be higher than net interest understanding gross interest