Based on your details, you can compare the following term deposits

Product
Max rate
Min. deposit
Company
Interest rate
Next rate increased
Features
Real Time Rating™
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0.70%

p.a for 3 months

$10,000

Citi

0.70%

p.a for 6 months

Automatic Maturity Rollover
Early Withdrawal Available
Is Covered By Government Gurantee
Joint Application Available
Maturity Alert By Email
Maturity Alert By Phone

2.23

/ 5
Go to site
More details

0.60%

p.a for 12 months

$25,000

AMP Bank

0.55%

p.a for 6 months

0.60%

p.a for 12 months

Automatic Maturity Rollover
Early Withdrawal Available
Is Covered By Government Gurantee
Joint Application Available
Maturity Alert By Email
Maturity Alert By Phone

1.83

/ 5
More details

0.85%

p.a for 10 months

$5,000

ANZ

0.65%

p.a for 6 months

0.85%

p.a for 10 months

Automatic Maturity Rollover
Early Withdrawal Available
Is Covered By Government Gurantee
Joint Application Available
Maturity Alert By Email
Maturity Alert By Phone

1.94

/ 5
More details

If you have a stash of cash that you don’t need to access every day, you can use the RateCity term deposit calculator to work out how much you could earn by putting that money in a term deposit. 

If you’re working towards a savings goal, like a first home loan deposit or a holiday, a term deposit calculator can help you work out how much interest you could add to your savings, and how quickly.

What is a term deposit?

A term deposit is a type of investment where you place your savings in an account for a fixed length of time. Over this term, the bank will pay you interest at a fixed rate on the amount you invest.

Term deposits are often considered relatively low-risk investments, and could be useful if you’re looking to add an extra boost to your savings. As you’re essentially locking your money away for a set period, banks will usually offer higher interest rates on term deposits than on regular savings accounts. 

Term deposit interest rates are fixed, and not variable rates. Meaning, what the interest rate is the day you join is what it will be for the full deposit term.

The catch is that you can’t easily withdraw your funds while they’re locked into a term deposit. You may need to provide advance notice, pay a fee, or receive less interest to withdraw money early from a term deposit. Unlike locking your nest egg away in a savings account, you cannot just withdraw your term deposit funds from an ATM, for example. 

For example, if you were to deposit $5,000 into a three-month short-term deposit, you wouldn’t be able to use those funds until the term deposit matures.

At the end of the term, you’d get the initial $5,000 back, as well as any interest you earned on your deposit during the term.

The amount of money you can make by depositing your savings will depend on the term deposit rate, the term length, and the amount you deposit.

For example, here are the calculated final balances for different starting deposits and term lengths, assuming an interest rate of 2.25 per cent:

   3 months 6 months  9 months  12 months 
$5,000 term deposit  $5,028 $5,056 $5,084 $5,113
$10,000 term deposit $10,056 $10,113 $10,169 $10,225
$20,000 term deposit $20,113 $20,225 $20,338 $20,450
$50,000 term deposit $50,281 $50,563 $50,844 $51,125

 

How do I use a term deposit calculator?

To get a more accurate idea of how much you can earn by investing in a term deposit, use the free RateCity term deposit calculator. 

  1. Fill in your initial deposit amount
  2. Fill in how long you intend to invest your money
  3. Add the potential interest rate on the term deposit.

This will show you how much money you could earn in interest on your savings, so you can compare these results with term deposits from different banks and other financial institutions. 

Keep in mind that the best term deposit will differ per person and depend on your specific financial situation and personal objectives. 

We recommend using the term deposit calculator to compare a few different scenarios, so you can see how much you could potentially earn by investing your savings in different term deposits.

Term deposit features

As well as using the calculator to estimate how much interest you could earn, there are other term deposit features to think about before making a choice, including:

  • Interest payment frequency: 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 whether the payments can be added to your deposit to earn compound interest. Keep in mind that before your deposit investment term is up, you should receive days' notice around when your funds will be available again.
  • Nominal and effective interest rates: The nominal rate is the advertised term deposit interest rate, whereas the effective rate is the potential interest rate including the compounding effect of payment frequency based on a 12-month term. The more frequent your interest payments, the higher the effective rate relative to the nominal rate, as regular interest payments are either compounded into the term deposit or can be reinvested elsewhere. Read a term deposit's product disclosure statement for more information around rates and fees.
  • Early withdrawal. Whether you just needed a little more in your nest egg for a home loan deposit, you want to pay off a personal loan or a car loan, or are looking to chip away at some credit card debt, you may find you need to early withdrawal your funds. Keep in mind that this will typically carry moderate to high fees and costs to do so.
  • Other fees and costs. Some term deposit providers may charge you ongoing fees, such as account keeping fees. If you're looking to keep ongoing costs down, it pays to do your research and compare a range of term deposits before applying.

Types of term deposits

When it comes to investing your money in a term deposit, you have two main options – short term deposits and long term deposits.

Short term deposits range anywhere from 30 days (one month) all the way up to 12 months (one year). While short term deposits may not earn as much interest as long term deposits as they have a smaller investment term, one upside is that you don’t have to lock your cash away for as long. This means that short term deposits are often suited to savers looking for a short-term boost. 

If you’re looking for a set-and-forget investment that steadily grows over a longer period, you may want to look at long term deposits. Usually offered for periods of 12 months to five years, long term deposits can help you steadily earn interest and grow your savings. As an incentive to lock your savings away for a longer period, the bank or lender will usually offer higher interest rates on long term deposits.

Long term deposits can offer a degree of stability, as well as earn you more total interest due to longer investment terms. One potential downside of long term deposits is that you may miss out on earning extra interest if rates were to rise.

Some banks also offer the option of a rollover term deposit. This gives you the option of rolling your money over for another fixed term when your term deposit matures. Before you roll over, it’s important to check to see that the rate is still competitive and suitable for your needs.

Withdrawing your money from a term deposit before the maturation date can come with hefty penalties, so before you apply, weigh up the risks and rewards of short and long term deposits. Also, think about your spending and saving habits. If you’re likely to continue saving and adding to your account regularly, you may also want to consider high-interest savings accounts. If you're unsure whether a term deposit is the right fit for you, consider reaching out for some financial advice from a financial adviser.