Business Term Deposits
Interest Earned Calculator AssumptionsInterest Earned Calculator AssumptionsClose
Interest Earned Calculator Assumptions
The results generated on the Term Deposit table are based on your inputs in the Investment Amount, Type of Deposit and Term fields. Please note that you are not able to input your own interest rate.
The initial investment is made today.
The interest rate is the annual interest rate divided by the interest payment frequency.
Please note that the initial amount of your term deposit may also be affected by inflation. This is not shown in the calculator results displayed and may need to be considered by you.
Fees and costs associated with term deposit products, and changes to markets and interest rates are not considered in the calculation. The results in the table assume that the interest rates will not change over time.
Interest earned values are rounded to the nearest cent by two decimal places.
One year is assumed to contain exactly 12 months, four quarters and two six monthly periods. Months are considered to be an equal length of 30 days
The results in the table should be used as an indication only and do not represent either quotes or pre-qualifications for any listed product. Individual institutions may have different formulas for calculating interest and the lender’s own eligibility criteria will apply. The results in this table are subject to the accuracy of the information provider. This table is not intended to be relied on for the purpose of making a decision about a particular financial product and we recommend you seek advice from a qualified professional adviser before making any financial decision
How do we calculate the amount of interest earned for the term and amount selected?
Where a term deposit has compounding interest, a Compound Interest calculation is used based on the investment amount, annual interest rate, number of compounds and the length of the term.
Where a term deposit does not compound, a Simple Interest calculation has been used.
Where the savings term is set for a period of two or more years the value of the estimated interest earned is adjusted based on the assumed rate of inflation at 2.5%*
Further details about how interest is calculated, including the formulas used, can be found here.
* The assumed rate of inflation is set by ASIC at 2.5% based on the midpoint of the Reserve Bank of Australia’s target rate of inflation. The actual rate of inflation may differ significantly from this assumption and, if inflation is more or less than the assumed rate of inflation, the outcome at the end of the selected period could be affected.
Compound Interest ExplainedCompound Interest ExplainedClose
Interest earned on an initial amount of money invested as well as on the accumulated interest. Interest can be compounded at different frequencies such as monthly, semi-annually, annually etc. The compound frequency, the number of compounding periods and the interest rate will determine the amount of interest earned.
Example: If you invest $10,000 for 5 years, at 3% interest compounded monthly, you would earn $1,616. Then by adding it to the initial investment amount, you would have a total of $11,616 by the end of the 5 year term.