Term Deposit Calculator
Calculate your interest earned and total at maturity for any term deposit — including monthly, quarterly and annual payment options.
| Total Interest Earned | $0 |
| Effective Annual Rate | 0% |
How Term Deposit Interest is Calculated
Term deposits earn interest at a fixed rate for a fixed period. The total interest depends on the principal, rate, term, and compounding/payment frequency.
At Maturity
All interest is paid as a single lump sum when the deposit matures. For terms up to one year, this is simple interest: Interest = Principal × Rate × (Term/12). No compounding occurs as the interest is not reinvested.
A worked example
$50,000 at 4.5% for 12 months with interest paid at maturity earns $2,250, so $52,250 comes back — an effective annual rate of 4.500%, before tax at your marginal rate.
Monthly / Quarterly / Annually
Interest is paid periodically. The balance compounds at each payment interval: FV = P × (1 + r/n)^(n×t) where n is the number of compounding periods per year. The total interest is FV − P.
Effective Annual Rate
The EAR lets you compare deposits with different compounding frequencies: EAR = (1 + r/n)^n − 1. A 5% rate compounded monthly has an EAR of 5.116% — slightly more than simple annual interest.
Financial Claims Scheme
Term deposits at Australian ADIs (banks, credit unions, building societies) are protected up to $250,000 per depositor per institution under the government's Financial Claims Scheme — making them one of the safest investments available.