Rates for

The calculator shows you how much interest you should earn on a fixed or term deposit at a bank and the final value of your deposit. It depends on two factors: the annual interest rate e.g. 10% p.a. and also the number of 'periods' (times per year) that the capital plus interest is compounded. This varies between banks who should publish their interest rate policy, but it is often left up to the customer to confirm this.

'Simple interest' is a single addition of the annual rate e.g. $100,000 at 10% p.a. would earn $10,000 interest the first year, balance $110,000. Second year $110K becomes $121K etc.

Most if not all banks pay compound interest, either half-yearly (2 periods or bi-annually) quarterly (4 times) monthly (12 times) or even daily (365 times per year). The accumulated value or balance of the deposit increases each period; therefore the more compounding periods used, the more interest will accrue over the year as interest is earned on the aggregated balance.
The increase in accrual between annual and daily balance compounding becomes noticeable on larger deposits and the number of years the account is left to accumulate.

Example. A $100,000 deposit at 10% with monthly balance compounding adds 1/12th of 10% to the balance each month, resulting in $110,471 after one year. With daily compounding it rises to $110,515. On $1 million the difference would be $5,000 which increases each year the money is left on deposit.

Check examples with the calculator, then use your own figures to see the amount of interest that a fixed term deposit will earn for different periods and then compare them with the bank's.

Do not use commas or $ £ symbols (the currency name is immaterial). You can ignore the taxation or inflation factors by leaving the fields at 0 (zero). To convert currency instantly, use the table below or visit the CurrencyOnline website.

Amount of Initial Deposit (no commas or currency symbol)  
Annual Interest Rate % p.a.  
Total Number of Compounding Periods no. of years x period    
Compounding Periods per Year    
Income Tax Rate (or leave 0)    
Annual Inflation Rate (or leave 0)    
Calculated Results
Total Interest Earned on Deposit  
Interest Earned per Period  
Average Interest per Period  
Final Total Value of Deposit  




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