Free Australian Finance Calculators
Calculate final balance and interest earned with different compounding frequencies.
Final Balance
$21,023
Interest may be taxable as income. Rates are indicative only — check with your bank for current term deposit rates.
Term deposit rates in Australia vary by bank, term length and deposit amount. As of mid-2026, rates for 6–12 month terms typically range from 4.0–5.0% p.a., with some smaller banks and credit unions offering higher rates for specific terms. Always compare rates from multiple institutions — even a 0.5% difference on a $50,000 deposit means $250 more interest per year. Use this calculator to see the dollar impact of different rates.
For simple interest: Interest = Principal × Rate × (Days ÷ 365). For example, $20,000 at 4.5% for 12 months = $20,000 × 0.045 × (365 ÷ 365) = $900 interest. For compound interest (monthly or quarterly), use this calculator — each compounding period adds interest to your balance, which then earns interest itself, increasing your total return slightly above the simple interest figure.
Yes — interest earned on a term deposit is assessable income included in your tax return for the year it is received or credited. Your bank will send an annual tax summary. Tax is calculated at your marginal income tax rate. For the 2026–27 income year, the marginal rates are 0% (up to $18,200), 16% ($18,201–$45,000), 30% ($45,001–$135,000 — note the new 15% bracket effective 1 July 2026 applies to amounts up to $45,000), 37% ($135,001–$190,000), and 45% (over $190,000), plus 2% Medicare Levy.
Term deposits offer a guaranteed fixed rate for a set period, protecting you if rates fall. High-interest savings accounts offer variable rates — better if rates rise, but they can be cut at any time. Term deposits suit money you won't need for 3–12 months and want certainty on. Savings accounts suit emergency funds or money you may need access to. At the same advertised rate, a savings account may earn less due to bonus rate conditions. See our full comparison: Term Deposit vs Savings Account.
More frequent compounding increases your effective return. Monthly compounding earns slightly more than annual compounding at the same advertised rate because interest is credited earlier and itself starts earning interest. The difference grows with longer terms and higher balances. For a $50,000 deposit at 4.5% for 3 years: annual compounding returns $7,072; monthly compounding returns $7,175 — a $103 difference. Use the calculator to compare compounding frequencies for your scenario.
Most Australian banks allow early withdrawal but charge a break fee, typically forfeiting some or all interest earned. The penalty varies by institution and how far into the term you are. Some banks offer penalty-free early access for hardship. Always check the Product Disclosure Statement (PDS) before locking funds in. If you might need the money early, a high-interest savings account is more flexible.
When a term deposit reaches its maturity date, your bank will usually contact you with options: roll over at the new rate, change the term, add or withdraw funds, or transfer to another account. Many banks auto-roll your deposit into the same term at the current rate if you don't respond — which may be lower than the rate you locked in. Always review your options at maturity, as the rollover rate may not be the best available.
Yes — term deposits held with an authorised deposit-taking institution (ADI) are protected up to $250,000 per depositor per ADI under the Australian Government's Financial Claims Scheme (FCS). This includes the big four banks and most smaller banks, building societies and credit unions registered with APRA. If you have more than $250,000 to invest, split it across multiple ADIs to stay within the protected limit.
Income Tax Calculator
Term deposit interest is taxable — calculate your after-tax return.
Superannuation Calculator
Compare term deposit returns with long-term super growth.
Savings Account Calculator
Compare a term deposit with a variable high-interest savings account.
Term Deposit vs Savings Account
Which is better for your situation? Full comparison.