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Term Deposit Calculator

Calculate the money you'll earn on a term deposit in seconds with our trusted tool
Updated 3 May 2026​

Our friends at InvestNow are pleased to support our popular term deposit interest calculator.

Term deposit details

Term length
Interest paid

"Interest paid" reflects how often your bank credits interest. Monthly, quarterly and half-yearly options assume interest is reinvested at the same rate (compounding). "At maturity" pays simple interest only at the end of the term, which is standard for shorter terms in New Zealand. Results are shown before tax (RWT or PIR).

Total at maturity $0.00
Initial deposit Interest earned
Initial deposit $0
Total interest earned $0
Total at maturity $0
View interest schedule
Period Interest earned Cumulative interest Balance
Assumptions:
  • The deposit is made today and held to maturity
  • Interest is reinvested at the same rate when paid monthly, quarterly or half-yearly. "At maturity" interest is calculated as simple interest for the full term, in line with standard New Zealand banking practice for shorter terms
  • The interest rate is assumed to remain constant for the full term. Term deposit rates are locked in at the start of the term in New Zealand, so this assumption holds in practice
  • Results are shown in future dollars before tax. Resident Withholding Tax (RWT) will reduce your actual return.
  • Early withdrawal penalties, account fees, and Depositor Compensation Scheme limits are not modelled
  • Learn more with our Best Term Deposits guide

​What is a term deposit, and how does it differ to a savings account?

There are two key differences, with term deposits and savings accounts offering unique advantages. We explain these below:
  1. Interest rates: A term deposit offers a fixed interest rate for the life of your investment. For example, “1.50% p.a. for 3 months” or “1.99% p.a. for 3 years”. Interest rates will usually be higher the longer the term is, as banks pay more for the certainty of re-lending your money for longer. A savings account offers a floating interest rate which means it can change at any time. Savings accounts, in most cases, offer lower interest rates than term deposits because you can access your money at any time.
  2. Withdrawals: Term deposits are, as their name states, fixed for a ‘term’. If you need to access your money, a penalty will be applied. This is usually a loss of interest rather than any fee taken you’re your term deposit investment. By comparison, a savings account allows you to withdraw money at any time.​
Cash Funds: A Flexible Alternative to Term Deposits
Unlike term deposits that lock in your money for fixed periods, cash funds offer competitive returns with the flexibility to access your funds when needed. The MAS Cash Fund is one example currently delivering strong performance in this category and is recognised for its returns while maintaining daily liquidity, meaning you can withdraw your money without incurring break fees, penalty interest or waiting for maturity dates.

The key differences between cash funds and term deposits:
  • No fixed terms or early withdrawal penalties
  • Returns that adjust with market conditions rather than being locked in
  • Professional management across multiple securities for better diversification
  • Potential tax advantages through PIE structure (capped at 28% vs up to 39% for term deposits)
  • While cash funds carry slightly more risk than term deposits, established funds like MAS's offering focus on capital preservation through investment in high-quality, short-term securities.
  • Our guide - Cash Funds vs Term Deposits - explains more.
  • Our guide to Cash Funds has more information, and you can read more about the MAS Cash Fund or apply to invest on the MAS website.
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