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Finance & property Australia

Term Deposit Calculator Australia

A term deposit locks your money for a set period at a fixed rate. This calculator shows the interest you earn, what you get at maturity and what you keep after tax, for the payment frequency your bank offers.

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Value at maturity

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Interest earned

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Interest after tax

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Effective annual rate

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Interest per month

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The working

    An estimate, not advice. General information and estimates only, not financial advice. Rates, fees and rules change, so check the lender's or provider's own terms and speak to a licensed adviser before you act.

    How is term deposit interest calculated?

    For interest paid at maturity, multiply the amount by the rate and the term in years: $25,000 at 4.5% for 12 months earns $1,125. If interest is paid monthly and left in, it compounds slightly, giving $1,148. Deposits are protected by the Financial Claims Scheme, which protects up to $250,000 per account holder at each authorised deposit-taking institution.

    Choosing a term

    Longer terms usually pay a higher rate but tie up your money. Splitting a sum across terms, such as three, six and twelve months, keeps some cash available as each matures. If rates are expected to fall, locking in a longer term helps, and if they might rise, shorter terms keep options open.

    Check whether the deposit renews automatically, because some roll over at the then-current rate.

    Safety

    Deposits at licensed banks, building societies and credit unions are covered by the Financial Claims Scheme, which protects up to $250,000 per account holder at each authorised deposit-taking institution. Check each institution's coverage before you deposit more than the limit, and note that the limit applies per person per institution.

    To model regular saving, use the savings goal calculator.

    How this is calculated

    The rule, step by step, so you can check any figure by hand.

    • interest at maturity = amount × rate × term in years
    • paid periodically and kept in the deposit: amount × ((1 + rate ÷ periods)^(periods × years) − 1)
    • effective annual rate = (1 + rate ÷ periods)^periods − 1
    • after tax = interest × (1 − your tax rate)

    Most term deposits pay simple interest: the same amount each period, with no interest on interest unless the bank reinvests it. That is why a deposit paying monthly and a deposit paying at maturity at the same headline rate end up close.

    Interest is taxable income at your marginal rate, and your bank reports it to the ATO. Break costs can apply if you withdraw early, often a reduction in the interest, so only deposit what you will not need.

    A worked example

    $25,000 for 12 months at 4.5%.

    1. Interest paid at maturity$1,125
    2. Maturity value$26,125
    3. Compounded monthly instead$1,148

    $1,125 of interest.

    Interest paid out rather than reinvested does not compound.

    Comparing offers

    Compare the rate for the same term and payment frequency. A slightly higher rate paid at maturity can beat a lower one paid monthly, because you wait for the money. Also compare the minimum deposit and the early-withdrawal rules.

    What it leaves out

    Break costs, fees and rate changes at rollover are not modelled.

    What this calculator does not do

    • A fixed rate for the full term
    • Simple tax rate only
    • No break costs
    • Not financial advice

    Common questions

    How is term deposit interest paid?

    At maturity, or monthly, quarterly or yearly, depending on the product.

    Is interest on a term deposit taxed?

    Interest is taxable income at your marginal rate, and your bank reports it to the ATO.

    Are term deposits safe?

    Deposits are covered by the Financial Claims Scheme, which protects up to $250,000 per account holder at each authorised deposit-taking institution.

    Can I withdraw early?

    Usually with notice and a penalty such as a lower rate.

    Does paying interest monthly earn more?

    Only if the interest is reinvested at the same rate, and then slightly more.

    Where these numbers come from

    Method last reviewed 2026-10-28 This calculator uses fixed rules rather than rates that change, and its method is re-checked against the sources above at least once a year. Out of date? Tell us and we will fix it.

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