Australian Term Deposit Calculator 2026 — Interest Earned & Maturity Amount
How the Australian Term Deposit Calculator Works
Major Australian bank term deposit rates — May 2026 (12-month term, indicative)
| Bank | 3-Month Rate | 6-Month Rate | 12-Month Rate |
|---|---|---|---|
| Commonwealth Bank (CBA) | 4.50% | 4.60% | 4.70% |
| Westpac | 4.45% | 4.55% | 4.65% |
| ANZ | 4.40% | 4.50% | 4.60% |
| NAB | 4.45% | 4.55% | 4.65% |
| Macquarie Bank | 4.80% | 4.90% | 5.00% |
| ING | 4.75% | 4.85% | 4.95% |
| Rabobank | 4.85% | 5.00% | 5.10% |
Real-World Examples — 2026
$50,000 term deposit at 5.0% for 12 months
A retiree deposits $50,000 into a 12-month term deposit at 5.0% per annum, with interest paid at maturity. Total interest earned is $2,500 over 12 months. After the 15% (at low income tax rate) effective tax on the interest, net return is approximately $2,125 — significantly above an inflation rate of 2–3% for the period. This compares favourably to a savings account rate of 3.5–4.0%.
$100,000 across a deposit ladder — 3, 6, and 12 months
An investor splits $100,000 into three term deposits: $33,000 at 3 months (4.5%), $33,000 at 6 months (4.6%), and $34,000 at 12 months (5.0%). This 'CD ladder' provides liquidity every 3 months while capturing higher rates on longer terms. Total annual interest is approximately $4,550 across all three deposits, with each maturing deposit available for reinvestment or spending.
Frequently Asked Questions
Are term deposits safe in Australia?
Term deposits from authorised deposit-taking institutions (ADIs) — which include all major banks — are protected by the Australian Government Deposit Guarantee. This guarantee protects deposits up to $250,000 per person per ADI. This makes term deposits one of the safest ways to hold cash savings in Australia, with essentially zero risk of capital loss.
What happens if I break a term deposit early?
Breaking a term deposit early (before the maturity date) usually incurs a penalty. Most banks apply a penalty that reduces your interest rate — for example, cutting it by 20–30% of the originally agreed rate. Some banks charge a flat fee. In most cases you still receive some interest, but less than if you had held the deposit to maturity. Check your bank's early withdrawal conditions before locking money away.
Is term deposit interest taxable in Australia?
Yes. All interest earned on term deposits is included in your assessable income and taxed at your marginal income tax rate in the year the interest is received. If interest is paid at maturity, it is assessable income in the financial year of maturity. Banks report interest payments to the ATO, so all interest must be declared in your tax return.
What is the best term deposit rate in Australia right now?
As of May 2026, the highest term deposit rates in Australia are available from Rabobank (approximately 5.1%), Macquarie Bank (approximately 5.0%), and ING (approximately 4.95%) for 12-month terms. The major four banks (CBA, Westpac, ANZ, NAB) typically offer slightly lower rates of 4.6–4.7% for 12-month terms. Rates change frequently; always check the bank's website for the current advertised rate.
Should I lock in a term deposit now or wait for rates to change?
If the RBA is expected to cut rates (as is currently forecast for 2026), locking in a term deposit now secures the current higher rate for the full term. If rates rise, you miss out on higher returns but your principal is guaranteed. For most conservative savers with cash they do not need immediate access to, locking in current rates for 12 months is generally reasonable when the rate cycle is expected to ease.