Business & Finance
Term Deposit Calculator Australia 2026
Calculate your term deposit interest and compare compounding frequencies side by side.
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How Term Deposit Interest Works
- Compound interest: FV = P × (1 + r/n)n×t, where n = compounds per year.
- At maturity: Simple interest — FV = P × (1 + r × t). No compounding benefit.
- Effective annual rate: (1 + r/n)n − 1. Higher compounding frequency = higher effective rate.
- Monthly compounding earns the most interest, while at maturity earns the least for the same nominal rate.
Term deposit rates vary by provider and term length. This calculator does not account for withholding tax on interest. Compare rates at your bank or through a comparison site.
Frequently Asked Questions
What is a good term deposit rate in Australia in 2026?
Competitive term deposit rates in Australia for 2026 range from 4.5% to 5.5% p.a. for 6-12 month terms. Rates vary by provider, deposit amount and term length. Online banks and credit unions often offer the highest rates.
Are term deposits safe in Australia?
Yes. Term deposits with Australian ADIs (banks, building societies, credit unions) are protected by the Australian Government Guarantee Scheme up to $250,000 per person per institution. This makes them one of the safest investment options.
Is term deposit interest taxable in Australia?
Yes. Interest earned on term deposits is assessable income and must be declared on your tax return. Your bank will report the interest to the ATO. The tax you pay depends on your marginal tax rate.
Can I break a term deposit early?
Yes, but early withdrawal usually incurs a penalty — typically a reduced interest rate. Some banks may pay no interest at all for very early breaks. Always check the early withdrawal terms before committing.
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Last updated: April 2026
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