Work out what a term deposit is worth at maturity. Enter the amount, interest rate, term and how often interest compounds to see the maturity value and total interest earned.
$10,000 at 4% for 3 years (compounded quarterly) matures at $11,268.25.
Interest earned$1,268.25
Deposit$10,000
Interest is shown before tax. Most term deposits pay tax on the interest at your marginal rate, and some deduct it at source.
A term deposit (also called a fixed deposit or CD) locks your money away for a set period at a fixed interest rate. The maturity value depends on the rate, the length of the term and how often interest is compounded — more frequent compounding gives a slightly higher return for the same headline rate.
How the maturity value is calculated
Maturity = P × (1 + r ÷ n)^(n × t) P = deposit, r = annual rate, n = compounding periods per year, t = term in years. For simple interest at maturity: Maturity = P × (1 + r × t).
Worked example
Deposit $10,000 at 4% for 3 years, compounded quarterly: n = 4, so Maturity = 10,000 × (1 + 0.04 ÷ 4)^(4 × 3) = 10,000 × 1.01¹² = $11,268.25. The interest earned is $1,268.25.
Compounding frequency matters
The same 4% rate returns a little more when it compounds monthly than yearly, because earlier interest starts earning interest sooner. Banks sometimes quote both a nominal rate and an effective annual rate (the yield after compounding) — compare deposits on the effective rate to be sure.
Frequently asked questions
Is term deposit interest taxed?
Usually yes, at your marginal income-tax rate. Some countries deduct withholding tax at source. This calculator shows the pre-tax figure.
What is the difference between a term deposit and a savings account?
A term deposit fixes the rate and locks the money for the term, usually paying more than an instant-access savings account in return for that commitment.
Can I withdraw early?
Often only with notice and an interest penalty, and some deposits don't allow it at all. Check the product terms before committing.
Does more frequent compounding always pay more?
For the same nominal rate, yes — monthly beats quarterly beats yearly, though the difference is small at typical rates.
Estimates for general guidance only, not financial advice. Confirm the rate, term and tax treatment with your bank before depositing.
Written by the CalcPine team · Reviewed for accuracy · Last updated 23 July 2026 · Method: Maturity = P × (1 + r/n)^(nt); simple option = P × (1 + rt).
