Work out what a term deposit earns, and compare rates to see which pays more.
Updated October 2026Built and checked by MaverickHow it's calculatedReport an error
Maturity value
$51,750
Principal + net interest
Net interest
$1,750
$2,500 gross
Tax paid
$750
On interest
After-tax rate
3.50%
annualised
For At-Maturity payouts the curve is linear. Periodic compounding curves it slightly upward.
Interest is taxed at your marginal rate, so tax is often the biggest cut from what you earn.
Same deposit, same rate: only the term changes. Longer terms compound more.
A term deposit pays a fixed rate for a fixed term, and deposits with Australian banks, building societies and credit unions are protected up to $250,000 per person per institution by the Financial Claims Scheme. The banks' average 1-year rate is 5% (RBA); the term deposit rate comparator lists every bank's current rates. This calculator works out the interest, the after-tax return and what you'd have at maturity.
As of 7 November 2026, the highest savings rate is 5.75%, from Defence Bank Limited's iSaver, while the typical best across 73 institutions is 4.85%. The highest 12-month term deposit rate is 5.75%, from Suncorp Bank's Term Deposit, while the typical best across 65 institutions is 5.30%. Prices rose 4.3% in the year to September 2026, so savings earning less than that lose ground to inflation, before tax.
Sophie deposits $100,000 at 4.75% for 12 months with interest paid at maturity.
Sophie earns $4,750 in interest. After tax (30% marginal rate), she keeps $3,325. The effective after-tax rate is 3.33%. Comparing after-tax returns is what matters.
Tom has $60,000 and splits it into three $20,000 term deposits: 3-month, 6-month, and 12-month.
As each deposit matures, Tom can reinvest at the best available rate or access the money. He gets flexibility while still earning higher rates than a savings account on most of his money.