DIRT (Deposit Interest Retention Tax)

A tax deducted from interest earned on many deposit accounts.

Definition

DIRT is a tax on deposit interest, commonly deducted at source by banks. The net interest you receive depends on the gross interest, applicable rate, and whether any exemptions or special cases apply.

Why it matters

It reduces the net return on cash savings and deposit accounts.
It helps explain why quoted interest rates differ from the interest you receive.

Common use cases

Comparing savings accounts
Estimating net interest on deposits
Understanding interest lines on bank statements

Related terms

Tax Deducted at Source

Disclaimer

This definition is for informational purposes only and does not constitute tax, legal, or financial advice. Rules may change and outcomes depend on your circumstances.

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Definition

Why it matters

It reduces the net return on cash savings and deposit accounts.
It helps explain why quoted interest rates differ from the interest you receive.

Common use cases

Comparing savings accounts
Estimating net interest on deposits
Understanding interest lines on bank statements

Related terms

Tax Deducted at Source

Disclaimer

This definition is for informational purposes only and does not constitute tax, legal, or financial advice. Rules may change and outcomes depend on your circumstances.