Term Deposit Calculator

Wondering what the future value is of your term deposit?
Enter your intial investment term deposit amount, then rate and term to see how much compounding interest your term deposit might earn.

This term deposit calculator is for information and illustrative purposes only and does not provide financial advice. The calculation is based on compounding interest being paid out at the end of the term (maturity) not paid out during the term. It does not consider applicable costs, taxes (including resident withholding tax) and charges.
Please note that interest rates are subject to change.
We recommend seeking financial advice about your situation and goals before getting a financial product.

Term Deposit Calculator terms to know

Initial deposit:

The starting balance for your term deposit.

Term length:

The amount of time you need to hold your term deposit. You’ll generally earn a fixed APY during that term.

Interest rate:

The base rate at which your deposit earns money.

Annual percentage yield (APY):

The percentage that indicates how much interest a bank account earns in one year.

Compounding Interest:

Your earnings are added to your balance. And that interest earns interest.

Early withdrawal penalty:

The early withdrawal penalty for your term deposit if you terminate the deposit before maturity

How to calculate your term deposit earnings

Because term deposits generally have a fixed annual percentage yield (APY), you can get a reasonably accurate calculation of how much you’ll earn when your term deposit matures. 

However, an early withdrawal penalty can reduce earnings if you withdraw your funds before the term deposit matures.

Learn how much interest you can earn with the LifeCovered term deposit calculator by following these steps:

  1. Determine the amount you want to invest in a term deposit, but be mindful of early withdrawal penalties. Choose your term carefully.
  2. Deposit the amount you wish to invest as your initial term investment deposit. 
  3. Enter the number of months or years for the term deposit.
  4. Finally, add the term deposit’s annual interest rate. 
Term Deposit Calculator

Top Term Deposit Rates

In this high-interest and high-inflation rate environment, you should get term deposit rates from banks and credit unions above inflation. For instance, the bank and credit union 12-month term deposit rate is, on average, 6.00% APY.

Frequently Asked Questions

Is term deposits worth it?

Yes, term deposits are a safe way to invest money with minimal risk, and returns are usually higher than inflation. You may earn more return on investment by investing in shares and property.

What are the tax rates on term deposits in NZ?

The tax rate on term deposit interest you earn, Resident Withholding Tax (RWT), is based on your taxable income.
There are different rates for individuals, trusts, companies and partnerships.

RWT Tax Rates Who should use this rate
10%
  • Individuals who have a reasonable expectation of their annual income being $14,000 or less* if they’ve provided their IRD number. 
  • Testamentary trusts may elect this rate if they provide their IRD number
17.5%
  • Individuals whose annual income is from $14,001 to $48,000* if they’ve provided their IRD number.
  • Individuals, Māori authorities and trusts who have not elected a rate but have provided their IRD number (if they have not opened a new account since 31 March 2010). 
  • Trusts and testamentary trusts may elect this rate if they’ve provided their IRD number.
28%
  • Companies may elect this rate if they’ve provided their IRD number
30%
  • Individuals whose annual income is from $48,001 to $70,000* if they’ve provided their IRD number.
  • Trusts and Māori authorities can elect this rate if they’ve provided their IRD number
33%
  • All interest recipients can elect this rate. They must provide their IRD number to choose this rate.
  • Individuals whose annual income is $70,001 to $180,000* 
  • Use this rate for all interest recipients who open a new account after 31 March 2010 who do not elect a rate.
39%
  • All interest recipients can elect this rate, for example, individuals whose annual income is $180,001 or over*
45%
  • For all interest recipients who have not provided their IRD number