What happens when my term deposit matures?

Most banks offer a grace period (usually 7-14 days) after maturity. During this time, you can withdraw, reinvest, or change the term without penalty. If you don't act, the bank typically auto-rolls it into a new term deposit at the current (often lower) rate.

Can I break a term deposit early?

Yes, but most banks charge an early withdrawal penalty, typically a reduced interest rate (you may only receive the base rate or even 0%). Some banks require 31 days' notice. Check your bank's specific terms before committing.

Are term deposits safe?

Yes. Deposits with Australian ADIs (Authorised Deposit-taking Institutions) are protected up to $250,000 per person per institution by the Financial Claims Scheme. This means even if the bank fails, your money is guaranteed up to this amount.

Term Deposit Calculator

Calculator

Calculate your term deposit returns and compare rates to find the best deal for your savings.

Free to useNo data storedAI insightsUpdated: February 2026

Term deposits offer a guaranteed return on your savings for a fixed period — no market risk, no surprises. In Australia's current rate environment, term deposits are offering competitive rates of 4-5%+, making them an attractive option for risk-averse savers. This calculator shows you exactly how much interest you'll earn, both before and after tax, and helps you choose the right term length.

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Real-World Examples

12-Month Term Deposit

Sophie deposits $100,000 at 4.75% for 12 months with interest paid at maturity.

Sophie earns $4,750 in interest. After tax (32.5% marginal rate), she keeps $3,206. The effective after-tax rate is 3.21%. Still better than most savings accounts but important to know the real return.

Laddering Strategy

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.

Frequently Asked Questions

Glossary

Term Deposit

A fixed-term savings product where you deposit a lump sum at a set interest rate for a specified period. You cannot access the money without penalty until the term ends.

Maturity Date

The date when the term deposit period ends and you can access your principal plus earned interest without penalty.

Financial Claims Scheme

An Australian government scheme that guarantees deposits up to $250,000 per depositor per ADI if the institution fails.

Laddering

An investment strategy where you spread money across multiple term deposits with different maturity dates, providing regular access to funds while earning competitive rates.

Related Tools

Compound Interest Calculator

See how investing in growth assets compares to a term deposit over the long term.

Savings Goal Calculator

Calculate how much to save each month to reach a specific goal.

Inflation Impact Calculator

Check if your term deposit rate is actually beating inflation.

How to Use

1Enter the amount you want to invest in a term deposit.
2Input the advertised interest rate from your bank.
3Select the term length — shorter terms offer flexibility, longer terms may offer higher rates.
4Choose how you'd like interest paid (at maturity compounds best for short terms).
5Add your marginal tax rate to see the after-tax return.

Key Information

Term deposit interest is taxable income — it's added to your tax return for the financial year it's earned.
'At Maturity' interest payment gives the highest return on short terms (up to 12 months) because interest compounds.
The government guarantees deposits up to $250,000 per person per institution through the Financial Claims Scheme.
Breaking a term deposit early usually results in a penalty (reduced interest rate).

Pro Tips

Use a 'laddering' strategy — split your money across multiple term deposits with staggered maturity dates for flexibility.
Compare net-of-tax returns, not just headline rates. A 4.8% TD at a 32.5% tax rate = 3.24% after tax.
Check if your bank offers bonus rates for new customers or online-only accounts.
Consider a notice saver account as an alternative — similar rates with more flexibility (31-day notice period).

Avoid These Mistakes

Locking all savings in one long-term deposit — you lose access and miss rate rises.
Not comparing after-tax returns between term deposits and high-interest savings accounts.
Forgetting that term deposit interest is taxable, which reduces the effective return significantly.
Automatically rolling over at maturity at a lower rate instead of shopping around.

Disclaimer: This calculator provides estimates only and should not be relied upon for financial decisions. Interest rates, fees, and policies change frequently. Always verify information with lenders directly. This is general information, not personal financial advice. Consider seeking advice from a licensed mortgage broker or financial advisor.

Last updated: February 2026