Term Deposit Calculator
- Initial deposit
- Total interest earned
- Tax paid on interest
- Final balance
Learn more about Term Deposits with the following related articles:
When looking to compare term deposit rates, it is important to compare some of the highest interest term deposits online, plus the fees and conditions attached to the account.
Securing your savings with a financial institution is a great way to make your money work for you. A term deposit is different to a savings account because it restricts you from accessing your money until the fixed term has expired. On the other hand, locking away your savings in a term deposit account will return you a much higher rate of interest than a transaction or savings account. To help get the best deal, compare term deposit rates online because they can vary significantly.
With so many options to sift through, finding the best term deposit rate for your situation can seem difficult.
Many investors often assume that when it comes to saving money in a term deposit the longer you fix your lump sum, the better the rate. Despite this, it's the shorter terms, such as three-month term deposits, that are often the most popular with Australians. This may be because shorter term deposits offer investors greater flexibility and access to their savings, particularly those who wish to assess the market frequently and want to avoid costly exit fees.
High interest term deposit rates have always been sought after by Australians who enjoy security and competitive returns. For anyone with a lump sum to invest, term deposits have many advantages. First of all, you can kick back and not need to worry about constantly monitoring or adjusting your investment, because a term deposit will grow by its own accord. Secondly, with the interest rate locked in, you can be sure of how much you will earn when your high interest term deposit rates mature. This becomes helpful when you have a cash goal that you need to meet in the foreseeable future.
Depending on the state of the current yield curve , 1 year term deposits often have some relatively high interest rates available, without the need to lock in your money for an exceedingly long time. For a quick rate comparison take a look at some of today's best rates displayed on our Term Deposit Best Buys Tables.
It's important to compare products and understand how your bank calculates and pays the interest earned in order to fully optimize your earning potential. Interest can be paid on 'maturity' either monthly, semi-annually or annually. To compare 1 year term deposits, start your own search today
Use RateCity’s free online Term Deposit Calculator to calculate the return on your fixed investment.
Get the security of a fixed rate of return. Below are some features to consider which may affect your interest earnings:
Interest Paid – Is your interest paid monthly, quarterly, semi-annually, annually or on maturity? Your final balance at the end of the term can vary depending on the frequency that interest is calculated and calculated into your account. Our term deposit calculator will take into account the frequency of interest payments when a real product is selected from the table.
Nominal and Effective interest rates – How are they calculated? The nominal rate is the advertised interest rate, whereas the effective rate is the potential interest rate including compounding effect of payment frequency based on a 12 month term. The more frequent interest payments are, the higher the effective rate relative to the nominal rate, as regular interest payments are either compounded into the term deposit, or have the ability to be reinvested elsewhere.
The final balance of your term deposit will differ depending on how interest is calculated and paid into your account. Use our term deposit calculator to find a strategy that will maximize your cash flow and nest egg.
RateCity's Term Deposits Guide provides you with the latest information to assist you with your decision of what Term Deposit account will best suit your investment needs. It also holds a range of useful advice to help make informed decisions.
Looking to invest your money for an extended period or maybe it's only 30 days. Whatever your needs, there are a range of products to compare from. RateCity is here to help you make an informed decision, so why not start today.
Term Deposit Articles
When searching and applying for your Term Deposit, head to our articles section for a range of definitions associated with your next investment. Whether you need to know what a Debenture is or what defines a short-term deposit, the answers are here.
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There are many different ways that term deposit interest is calculated. This is primarily because term deposit accounts can have many different combinations of interest parameters. The first parameter is whether the interest is compounded and when or not at all. Many term deposit accounts do not compound the interest you earn which means you will either receive the interest as a lump sum at the end of the term when it matures, or the interest will be deposited into a nominated account periodically. The second parameter is the time when interest is paid. This is usually either annually, semi-annually, quarterly, monthly, fortnightly, weekly and on maturity.
Shorter term deposit accounts of 12 months or less generally receive interest on maturity. Longer term deposits are dependent on the institution and can vary accordingly. There is also a difference between the periods in which interest is calculated. If you choose a compounding interest rate – when the interest is deposited into the term deposit account at certain intervals throughout the term – you will earn more interest than if it doesn’t compound. Keep these factors in mind when comparing accounts.
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