Term deposit calculator
Gross interest on a lump sum over a fixed term, before any Australian tax is taken off.
Source: your own figures · user scenario, not a forecast or offerThe arithmetic is the same in every country
Gross is not what you keep
Interest on a term deposit is income. If you do not give your bank your tax file number (TFN) or claim an exemption, the bank is required to withhold tax from interest payments at 47%, the highest marginal tax rate inclusive of Medicare levy (45% base rate plus 2% Medicare levy). If you do provide your TFN, no tax is withheld at source and the interest is added to your taxable income for the year. Non-residents have 10% interest withholding tax deducted before the interest is paid.
Breaking a term deposit early can cost interest. The rate you agreed applies to the full term, not to the part you served.
Common questions
What rate should I enter?
The starting rate is illustrative, not a current market average or bank offer. Enter a quoted annual rate for your deposit amount and term. Changing the term keeps your entered rate; check the quote again.
Does interest compound?
Not here. This is simple interest for the term, which is how most term deposits under a year are paid.
The rules behind this calculator
Written up, with the page each rule came from.
2 min read
Savings accounts and term deposits: read beyond the rate
Interest conditions, access to your money and deposit protection answer different questions. Check each separately.
2 min read
Australia Financial Claims Scheme: deposit protection
This guide explains the deposit limit, account coverage and treatment of multiple accounts under Australia’s Financial Claims Scheme.