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Savings & Term Deposit Calculator

See the interest on a high-interest savings account or term deposit, and what you keep after tax at your marginal rate.

$
%

A year (p.a.), as advertised

$

Interest you keep

$312.39

After 1 year at 4.5% p.a. (4.59% a year with interest on interest)

Balance at the end
$10,312
Tax on the interest
$147.01
Your balance at the end
  • Money you put in$10,000
  • Interest you keep$312
  • Tax$147

What this means

After tax, your savings earn about 3.12% a year. With prices rising around 2.5% a year, that’s about 0.6% a year more than inflation.

Shopping around pays: a rate just 0.5% higher would earn you $35.51 more after tax over 1 year.

Interest is added to your taxable income and taxed at your marginal rate, plus the Medicare levy. Rates are for 2026–27.

Next step

Breakdown

PeriodInterestTaxBalance
1 year$459.40$147.01$10,312

What a better rate is worth

  • 3.5%$241.86 after tax
  • 4%$277.05 after tax
  • 4.5%$312.39 after tax
  • 5%$347.90 after tax
  • 5.5%$383.57 after tax
Assumptions in this estimate
  • The rate stays the same for the whole period. Savings account rates can change at any time; fixed-term rates are set when you open the account.
  • Savings accounts add interest monthly. A term deposit adds it at the end of the term, or each year on terms over a year.
  • Tax is worked out on each year’s interest and taken from the balance, as when tax is deducted at source.
  • Money added each month goes in at the end of the month.
Spotted a mistake? Tell us

How the calculator works

  1. Amount and rate: what you put in, and the rate a year (p.a.).
  2. Type of account: a savings account adds interest monthly, and you can add money each month. A term deposit fixes the rate and pays interest at the end, or yearly on longer terms.
  3. Tax: pick the bracket your total income falls in.

Example

$10,000 at 4.5% p.a. for a year, on a $45,001 to $135,000 income:

Savings account Term deposit
Interest $459.40 $450.00
Tax (32%) $147.01 $144.00
Interest you keep $312.39 $306.00

The savings account earns a little more because its interest is paid monthly and earns interest itself.

Getting a better rate

  • Check the conditions: a bonus rate you miss one month can drop to a much lower base rate.
  • Compare term deposits: the big four banks often pay less than smaller banks, and your term deposit may roll over at a lower rate if you don’t act.
  • Got a home loan? Money in an offset account saves interest at your home loan rate, and the saving isn’t taxed.

For longer-term growth, try the compound interest calculator.

Last updated

Frequently asked questions

How much interest will $10,000 earn?

At 4.5% p.a. paid monthly, about $459 in a year. At a 30% tax rate plus the 2% Medicare levy, $147 goes in tax, so you keep about $312.

Is interest taxed in Australia?

Yes. Interest is added to your taxable income and taxed at your marginal rate, plus the Medicare levy. Your bank reports it to the ATO, so it’s pre-filled in myTax. If you haven’t given your bank your TFN, it withholds 47%.

What does p.a. mean?

Per annum: a year. When interest is paid monthly, it starts earning interest too, so 4.5% p.a. works out to about 4.59% over a year.

Should I choose a savings account or a term deposit?

Bonus saver accounts often pay their top rate only if you meet conditions each month, like adding money or making no withdrawals. A term deposit fixes the rate; to take money out early you usually give 31 days’ notice and earn less interest.

Is my money safe?

The Financial Claims Scheme guarantees deposits up to $250,000 per person, per bank, building society or credit union.