Australia Term Deposit Calculator: Maturity Value and Interest
Work out what an Australian term deposit grows to at maturity — from a lump sum at a fixed interest rate over a set term — and how much interest you earn locking your money away.
Adjust the inputs and select Calculate for a full breakdown.
Compare Common Scenarios
How the numbers shift across typical situations for this calculator:
| Scenario | Maturity value | Interest earned |
|---|---|---|
| $20k · 5% · 3yr ($23,152.50) | $23,152.50 | $3,152.50 |
| $50k · 4.5% · 2yr | $54,601.25 | $4,601.25 |
| $10k · 5.2% · 5yr | $12,884.83 | $2,884.83 |
| $100k · 4.75% · 1yr | $104,750.00 | $4,750.00 |
How This Calculator Works
Enter the amount you deposit, the fixed annual rate, and the term in years. The calculator compounds the deposit annually and shows the maturity value and the interest earned. A term deposit (TD) pays a guaranteed fixed rate for an agreed term, in exchange for leaving the money untouched until maturity.
The Formula
Future Value of a Lump Sum
PV = present value, r = annual rate, n = number of years
Worked Example
A $20,000 term deposit at 5% for 3 years matures at $23,152.50 — $3,152.50 of interest. An Australian term deposit locks a lump sum with a bank, building society, or credit union at a fixed rate for a chosen term (from a month to several years). The rate is guaranteed for the whole term, so unlike a savings account it won't fall if the cash rate drops — but you generally can't access the money early without notice and an interest penalty.
Key Insight
Term deposits are a staple of conservative Australian saving, and a few features define how they work. The rate is fixed and guaranteed for the term, which is the main appeal — it gives certainty and protects you if interest rates fall, though it also means you miss out if rates rise during the term. Deposits with Australian authorised deposit-taking institutions (banks, building societies, credit unions) are covered up to a cap per account-holder per institution by the government's Financial Claims Scheme, making them very low risk. Interest can be paid at maturity or at intervals (monthly, quarterly, annually) depending on the product; this calculator assumes annual compounding to maturity, so a product paying interest out periodically (rather than reinvesting it) would earn slightly less than shown. Key practical points: breaking a term deposit early usually requires notice and incurs an interest reduction, so only lock away money you won't need; at maturity many banks auto-roll the deposit into a new term at the prevailing (often lower 'rollover') rate unless you give instructions, so diarise the maturity date; and the interest is assessable income — taxed at your marginal rate, with the bank reporting it to the ATO (and withholding at the top rate if you don't supply a Tax File Number). Term deposits suit money earmarked for a known future date and savers wanting capital certainty; for flexibility a high-interest savings account may suit better, and for longer horizons growth assets typically out-earn cash. This calculator shows the gross maturity value at a constant rate; your net return depends on tax and on whether interest compounds or is paid out.
Frequently Asked Questions
How is the term deposit maturity value calculated?
Compound the deposit at the annual rate over the term: maturity = deposit × (1 + rate)^years. $20,000 at 5% for 3 years matures at $23,152.50, earning $3,152.50 of interest. This assumes interest compounds annually and is held to maturity.
What is a term deposit?
A savings product where you lock a lump sum with a bank, building society, or credit union at a fixed interest rate for an agreed term (from about a month to five years). The rate is guaranteed for the whole term, and you generally can't withdraw the money early without notice and an interest penalty.
Is my money safe in a term deposit?
Deposits with Australian authorised deposit-taking institutions are protected up to a cap per account-holder per institution under the government's Financial Claims Scheme, so term deposits are considered very low risk. The trade-off for that safety and certainty is a lower return than growth assets over the long run.
What happens when the term deposit matures?
Unless you give instructions, many banks automatically roll the deposit into a new term at the prevailing rate — often a lower 'rollover' rate — so it's worth diarising the maturity date and reviewing your options. At maturity you can withdraw, add funds, or re-invest at a new rate and term.
Is term deposit interest taxed?
Yes — interest is assessable income, taxed at your marginal rate, and the bank reports it to the ATO. If you don't provide your Tax File Number, the bank withholds tax at the top rate. This calculator shows gross interest before tax, so your net return will be lower depending on your tax position.
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Methodology & Review
The maturity value compounds a lump sum at the annual rate over the term, compounded annually; the interest is the maturity value minus the deposit. It assumes a single fixed rate held to maturity with interest compounding once a year, and does not model interest paid out periodically, monthly compounding, or tax withheld on the interest.
Written by Ugo Candido · Last updated May 22, 2026.