What is the difference between gross% and gross return%

[A11]

What does gross% and gross return% mean on a fixed term deposit? The gross return% amount is way lower than the gross%.

 

[Brendan Burgess]

Can you give an example?

It could be that that the gross percentage refers to the total return over the period whereas the gross return is the annual rate.

For a two year fixed term deposit

Gross return/Compound annual rate = 3%

But the Gross percentage would be 6.09%

Brendan

 

[Lightning]

What does gross% and gross return% mean on a fixed term deposit? The gross return% amount is way lower than the gross%.

Which banks and which product are you looking at?

One should focus on the AER rate when comparing deposit products.

 

[A11]

Which banks and which product are you looking at?

Permanent TSB - fixed term deposit (for 2 months): gross= 3.5%, gross return= 0.58%, aer= 3.55%.

 

[Lightning]

Permanent TSB - fixed term deposit (for 2 months): gross= 3.5%, gross return= 0.58%, aer= 3.55%.

The gross return is the return you will get after the 2 month period before the reduction of DIRT.

There is a difference between 'PTSB gross' and the AER due to the fact that one is using a 360 day count and one is using a 365 day count.