What is the difference between gross and net interest rates?

The gross interest rate is the amount of interest you will earn before income tax is deducted. Following the introduction of the new Personal Savings Allowance in April 2016, all interest is now paid gross. Basic-rate taxpayers can earn £1,000 of savings interest without paying any tax on it. Higher-rate taxpayers can earn £500. All Hodge accounts are paid gross, however you may be liable to pay tax on interest in accordance with HMRC guidelines.

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