Term Deposit Calculator Australia
See exactly what your term deposit earns — before and after tax.
Calculate interest and maturity value for any term deposit, compare two rates side by side, see your after-tax return at your marginal bracket, and check the $250,000 government guarantee. Top 6–12 month TDs are paying ~5.50% as of July 2026.
Rates shown reflect the July 2026 market — enter the rate you've actually been offered above.
How term deposit interest is calculated
Simple interest, locked rate
Interest is calculated on your principal at the fixed rate for the fixed term: deposit × rate × years. $25,000 at 5.00% for 12 months earns $1,250, paid at maturity. The rate cannot fall during the term — that certainty is what you're buying.
Payout options
At maturity pays everything at the end (usually the highest rate). Monthly pays income to your linked account — popular with retirees, often ~0.10% lower. Annually reinvested compounds on multi-year terms: $50,000 at 5.25% for 2 years grows $5,388 reinvested vs $5,250 simple.
Where term deposit rates sit right now
After RBA cash-rate rises in February, March and May 2026 (to 4.35%), the best 6–12 month term deposits pay around 5.50% p.a., with a handful of smaller ADIs slightly higher. The big four banks typically sit 0.5–1.0% below the market leaders for the same term.
The curve is inverted
Unusually, 6–12 month deposits currently pay as much as or more than 2–5 year products, because markets price in eventual RBA cuts. Locking a long term at a lower rate only makes sense if you expect rates to fall significantly — otherwise stay short and roll.
Interest is ordinary income at your marginal rate
Term deposit interest is assessable in the year it is paid or credited — for a multi-year deposit with interest at maturity, the whole amount lands in one tax year, which can matter near bracket boundaries. On $1,375 of interest: about $234 in the 15% bracket, $440 at 30%, $536 at 37% and $646 at 45% (each including the 2% Medicare levy).
Couples can hold deposits in the lower earner's name to cut the tax on interest. And always supply your TFN — without it the bank withholds 47%, recoverable only when you lodge.
How the Financial Claims Scheme protects your deposit
The Financial Claims Scheme (FCS) guarantees deposits up to $250,000 per person, per licensed bank (ADI) — covering term deposits, savings and transaction accounts combined at that bank. Joint accounts count $250,000 per holder.
Two traps: amounts above the cap at a single bank are simply not covered, and different brands owned by the same ADI share one cap — check the licence, not the logo. With $400,000 to place, $250,000 at bank A and $150,000 at bank B is fully protected; $400,000 at one bank is not.
Staggered maturities: access plus rate averaging
Instead of one big deposit, split into parcels maturing at staggered dates — say 4 × $25,000 over 3, 6, 9 and 12 months, each rolled into a new 12-month term as it matures. You get a maturity (an access window) every quarter, you average out rate movements instead of betting on one day's rate, and it's easier to stay under the $250,000 FCS cap per bank.
The trade-off is a slightly lower blended rate than the single best long-term offer — the price of flexibility. Pair the ladder with an emergency fund in an at-call account for true instant access.
❓ Frequently asked Frequently asked questions
How is term deposit interest calculated?
Simple interest on the principal: deposit × rate × term. A $25,000 deposit at 5.50% for 12 months earns $1,375. For multi-year terms with interest reinvested annually, each year's interest compounds — $50,000 at 5.25% for 2 years grows by $5,388 instead of $5,250.
Is my term deposit government-guaranteed?
Up to $250,000 per person, per licensed bank (ADI) under the Financial Claims Scheme. Amounts above that at one bank are not covered — split large sums across separately licensed banks, and note that brands owned by the same bank share one cap.
How is the interest taxed?
As ordinary income at your marginal rate plus the 2% Medicare levy, in the year the interest is paid or credited. On $1,375 of interest that's about $234 in the 15% bracket, $440 at 30%, and $646 at 45%. Without a TFN on file the bank withholds 47%.
Can I withdraw a term deposit early?
Usually yes, but with 31 days' notice and an interest-rate reduction that can claw back most of the benefit. If you may need the money, use a shorter term, a ladder of staggered maturities, or a high-interest savings account instead.
Term deposit or savings account?
A term deposit locks a fixed rate for a fixed term — no rate cuts, no access. A bonus-rate savings account keeps access but the rate can fall and often carries monthly conditions. Many savers hold both: an emergency fund in savings, surplus cash in term deposits.
What happens at maturity?
You choose: withdraw, roll into a new term, or adjust the amount. Beware auto-rollover — banks often roll you into a much lower "standard" rate than the special you signed up for. Diarise the maturity date and renegotiate.
Where these figures come from
Deposit protection and tax rules come from the Australian regulators of record; market rates reflect published comparison data.
- Financial Claims Scheme ($250,000 guarantee) — APRA — Financial Claims Scheme.
- RBA cash rate — Reserve Bank of Australia — Cash rate target.
- Interest income and TFN withholding — ATO — Investment income.
- Term deposits explained — Moneysmart — Term deposits.
Last checked: July 2026. Market-rate context (top TDs ~5.50%, cash rate 4.35%) reflects the July 2026 landscape; enter your actual offered rate above.
Select the question that matches where you are right now.
Your result shows the interest a term deposit earns over the term, what tax takes at your bracket, and the true after-tax return — the number to compare against other uses of the money.
Compare the effective after-tax return against your mortgage offset rate, savings account, or investment alternatives — after tax, a 5.50% deposit is ~3.74% for a 30%-bracket earner.
Not a growth investment — interest doesn't beat inflation by much, and your capital never grows. It's a capital-preservation and certainty tool.
Simple-interest and annual-compounding math matches how Australian ADIs quote term deposits. All calculations run in your browser.
Three things move the outcome: the rate you lock, the payout style, and your tax bracket.
The gap between the best rate and a big-four standard rate can exceed 1% — $250 a year per $25,000. Shopping around is the single highest-value hour in personal finance.
At-maturity usually pays the top rate; monthly income costs ~0.10%; annual reinvestment adds compounding on multi-year terms.
A 45%-bracket earner keeps just 53% of the interest; below $18,200 income keeps 100%. Structuring deposits in a lower-earning partner's name is legitimate and significant.
Squeeze more from the same cash without extra risk.
Banks roll maturing specials into low standard rates. Diarise maturity, then renegotiate or move — the loyalty tax on deposits is real.
Staggered maturities give quarterly access and rate averaging — see the ladder card above.
If you have a mortgage, money in an offset "earns" your loan rate tax-free — usually beating any term deposit after tax.
Term deposits are one shelf of the savings toolkit. Model the alternatives.
See what reinvesting at different rates does over 5–20 years.
Compound interest →Check your real return after CPI — the number that actually matters.
Inflation impact →