Term Deposit Calculator
Your own quoted term deposit rate — compare rates from your bank or a comparison site.
Interest earned on a term deposit is taxable income — enter your marginal tax rate to see the after-tax figure (leave at 0 if you'd rather see the pre-tax amount only).
Maturity value
$20,900.00
Interest earned
$900.00
After-tax interest
$607.50
After-tax maturity value
$20,607.50
$20,000.00 at 4.50% p.a. for 12 months earns $900.00 in interest, maturing at $20,900.00 — after tax at 32.5%, you keep $607.50 of that interest, for an after-tax maturity value of $20,607.50.
Quick answer
A term deposit calculator works out the maturity value of a fixed-term deposit using simple interest, calculated once on the full term rather than compounded. For example, $20,000 deposited at 4.5% p.a. for 12 months earns $900 in interest, reaching $20,900 at maturity — before tax at your marginal rate reduces what you actually keep.
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Term Deposit Calculator is one of savings, interest and investing tools on OneCalculate — see the full set for this category.
Browse Savings & InvestingHow it works
Australian term deposits typically pay simple interest — interest is calculated once on your original deposit for the whole fixed term, then paid out as a lump sum when the term matures. That’s different from an everyday savings account, which usually compounds interest on a growing balance for as long as you keep the money there — if that’s the product you’re comparing, see our compound interest calculator instead.
The formula:
Interest earned = Principal × (Annual rate ÷ 100) × (Term in months ÷ 12)
Maturity value = Principal + Interest earnedBecause the interest is simple rather than compounding, a term deposit’s return scales in a straight line with the term — double the months and you double the interest, all else equal.
Interest earned on a term deposit is assessable income under Australian tax law. It’s added to your other income for the year and taxed at your marginal tax rate rather than a flat rate, which is why this calculator asks for your marginal rate — it converts the pre-tax figure your bank advertises into the after-tax return you actually keep. Leave the tax rate field at 0% if you’d rather see the pre-tax numbers only.
Because a term deposit’s return is fully determined by its rate and term, comparing offers side by side is the natural way to shop for one:
| Term | Rate (p.a.) | Interest on $10,000 |
|---|---|---|
| 3 months | 4.20% | $105.00 |
| 6 months | 4.30% | $215.00 |
| 12 months | 4.50% | $450.00 |
| 24 months | 4.20% | $840.00 |
A longer term isn’t automatically the better deal — it locks your money away for longer, so a shorter term that returns your capital sooner can be worth more to you than the extra interest, especially if rates might move.
Worked example
Deepa has $20,000 to put into a term deposit and is deciding between two offers from her bank: 4.50% p.a. locked in for 12 months, or 4.30% p.a. for a shorter 6-month term. Her marginal tax rate is 32.5%.
12-month offer: interest = $20,000 × 4.50% × (12 ÷ 12) = $900.00, so the deposit matures at $20,900.00. Tax at 32.5% = $292.50, leaving after-tax interest of $607.50.
6-month offer: interest = $20,000 × 4.30% × (6 ÷ 12) = $430.00, so the deposit matures at $20,430.00. Tax at 32.5% = $139.75, leaving after-tax interest of $290.25.
| Rate (p.a.) | Term | Interest earned | Maturity value | After-tax interest | After-tax maturity value | |
|---|---|---|---|---|---|---|
| Offer A | 4.50% | 12 months | $900.00 | $20,900.00 | $607.50 | $20,607.50 |
| Offer B | 4.30% | 6 months | $430.00 | $20,430.00 | $290.25 | $20,290.25 |
Offer A earns more interest outright, but it also ties up Deepa’s $20,000 for twice as long. Offer B returns her capital at the 6-month mark, letting her reassess rates or reinvest sooner — worth weighing alongside the raw dollar figures above, not just the headline rate.
Frequently asked questions
Is term deposit interest paid monthly or at maturity?
Most Australian term deposits pay all of the interest as a single lump sum when the term ends, alongside your original deposit. Some banks offer optional monthly or annual interest payments on longer terms, often at a slightly lower rate — check your specific product if you want income paid out sooner.
Do I pay tax on term deposit interest?
Yes. Term deposit interest is assessable income under Australian tax law — it's added to your other income for the year and taxed at your marginal rate, not a separate flat rate. Your bank reports the interest paid to the ATO, so it will show up pre-filled on your tax return.
What happens if I break a term deposit early?
Breaking a term deposit before it matures is usually possible but comes at a cost — most banks reduce or forfeit some or all of the interest you've earned, and some charge a break fee on top. The exact terms vary by bank and product, so check your deposit's conditions or call your bank before signing up.
Is my money guaranteed in a term deposit?
Deposits with an Australian ADI (a licensed bank, building society or credit union) are covered by the Financial Claims Scheme, which guarantees up to $250,000 per account holder per institution if that institution fails. Confirm your provider is an ADI — Moneysmart's term deposits page explains what the guarantee covers.
What's the difference between a term deposit and a savings account?
A term deposit locks your money away for a fixed term at a fixed rate, paid out at maturity. A savings account gives you ongoing access to your money at a variable rate that usually compounds monthly. Term deposits typically pay a higher guaranteed rate in exchange for reduced access to your funds.
What's the minimum deposit for a term deposit?
Minimums vary by bank, but many Australian term deposits start from $1,000 to $5,000, and some online-only providers accept as little as $500. The minimum can also affect which interest rate tier you're offered, so check the specific product's terms before you compare rates.
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Written and verified by Nirbhay Tripathi
Last updated 18 August 2026
All rates on this page are verified againstMoneysmart — Term deposits, ATO — Interest and dividend incomeon 18 August 2026. See our methodology for the full update calendar.