Calculate Your Term Deposit Returns
Know exactly how much you'll earn before opening a term deposit. Enter your deposit amount, interest rate, term length, and payment frequency to see your gross interest, tax impact, and total maturity amount. Compare rates side-by-side to find the best deal for your savings.
Choosing the Right Term Length
| Term | Typical Rate | Best For | Trade-off |
|---|---|---|---|
| 1-3 months | 3.0% – 4.0% | Short-term parking of cash | Lower rate but maximum flexibility |
| 6 months | 4.0% – 4.5% | Medium-term savings | Good balance of rate and access |
| 12 months | 4.0% – 5.0% | Most popular term | Best rates, reasonable lock-up |
| 2-3 years | 3.5% – 4.5% | Rate certainty | Risk of missing rate rises |
| 5 years | 3.5% – 4.0% | Long-term guaranteed return | Significant opportunity cost |
Interest Payment Options Explained
- At maturity — All interest paid as a lump sum when the term ends. Earns the most due to compounding but you don't receive any income during the term
- Monthly — Interest credited to a nominated account each month. Provides regular income but total interest is slightly less
- Quarterly — Interest paid every 3 months. A middle ground between regular income and higher total returns
- Annually — Interest paid once per year. Suitable for terms of 2+ years when you want periodic income
Term Deposit Tips
- Ladder your deposits — Split your money across different terms (e.g., 3, 6, 9, 12 months) to maintain liquidity while earning higher rates
- Compare beyond the big banks — Online-only banks and smaller institutions often offer significantly higher rates
- Check the renewal policy — Many banks auto-renew at a lower rate. Set a reminder to review and compare before maturity
- Provide your TFN — Without a Tax File Number, the bank withholds tax at the highest marginal rate
- Consider the rate environment — When rates are rising, shorter terms let you reinvest at higher rates sooner