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.
Most term deposits of 12 months or less pay simple interest at maturity: interest = deposit × rate × (days ÷ 365). Interest isn't added to your balance during the term, so it doesn't compound. Compounding only matters on longer terms where interest is paid monthly, quarterly or annually and reinvested.
| Example (October 2026 rates) | Rate | Interest earned |
|---|---|---|
| $25,000 for 12 months at NAB | 5.30% | $1,325 |
| $25,000 for 6 months (182 days) at a big-four standard rate | 3.45% | $430 |
| $25,000 for 6 months (182 days) at ING | 5.20% | $648 |
Rates from NAB, CommBank and ING, checked 5 October 2026. Choosing the six-month term at ING instead of a big-four standard rate earns $218 more on the same deposit. Compare every bank's 3, 6 and 12-month rates in our term deposit rates comparison.
As at early October 2026, the best 12-month rates from the banks we checked are 5.30–5.35% p.a. (NAB, ING, Macquarie Digital), with CommBank and Westpac matching 5.30% through special offers. For 3 and 6 months, NAB, CommBank and Westpac pay only 3.25–3.50%, against 5.05–5.20% at ING. Even a 0.5% difference on $50,000 is $250 a year. See our term deposit rates comparison for the full table and sources.
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, resident marginal rates are 0% up to $18,200, 15% from $18,201 to $45,000, 30% to $135,000, 37% to $190,000 and 45% above that, plus the 2% Medicare levy. If your bank doesn't have your TFN, it withholds tax at the highest marginal rate once interest reaches $120 a year.
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 earns $7,058; monthly compounding earns $7,212 — a $154 difference. Use the calculator to compare compounding frequencies for your scenario.
Usually, but not instantly: NAB, Westpac, ANZ and Macquarie all require 31 days' notice, and you pay for breaking the term — for example, ANZ charges a $30 administration fee plus an interest reduction, and Macquarie's standard term deposit charges 25% of the interest accrued. Some banks offer earlier 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.
Term Deposit Rates Compared
October 2026 rates from NAB, CommBank, Westpac, ING and Macquarie, and when a savings account wins.
Best Savings Accounts
Compare a term deposit with today's highest savings account rates.
How Term Deposit Interest Is Calculated
Simple vs compound interest, rate comparisons, early withdrawal penalties, and tax.