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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2.00%

p.a for 5 months

$5,000

ANZ

1.70%

p.a for 6 months

2.00%

p.a for 5 months

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

1.95

/ 5
More details

1.80%

p.a for 60 months

$5,000

ANZ

1.10%

p.a for 6 months

1.15%

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

1.43

/ 5
More details

2.10%

p.a for 5 months

$1,000

UBank

2.05%

p.a for 6 months

2.10%

p.a for 5 months

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

2.51

/ 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 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. Because 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. 

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.

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 into a term deposit will depend on the interest rate, the term length, and the amount you deposit. 

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. 

Simply fill in your initial deposit amount, how long you intend to invest your money, and the potential interest rate on the term deposit. We’ll 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. 

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 deposit.

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.
  • Nominal and effective interest rates: The nominal rate is the advertised 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.

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 can range anywhere from 30 days (one month) all the way up to 12 months (one year). While short term deposits don’t tend to earn as much interest as long term deposits, 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 (one year) up 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.

While long term deposits can offer a degree of stability, one potential downside of locking in an interest rate for a longer period 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.