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💰 Term Deposit / Fixed Deposit (CD) Calculator

Calculate your maturity amount and interest earned — supports USD, GBP, EUR, INR, AUD and more, with optional inflation and tax adjustments

🏦 Deposit Details
Principal Amount ? $10,000
$500$250K$500K
$
Typical US CD rates: ~4.5–5.3%
YearsMonths (0–11)
📈 Results
Maturity Amount
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Total Interest Earned
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Effective Annual Yield
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Principal vs Interest
Year-wise Growth
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Enter Deposit Details

Fill in your deposit amount, interest rate, tenure, and compounding frequency to see the maturity value.

Formula

How Term Deposit Interest Is Calculated

Term deposits / CDs use the standard compound interest formula

Compound Interest Formula
A = P × (1 + r/n)^(n×t)

realGain = A / (1+inf)^t - P

post-tax interest = interest × (1 - taxRate)

Where:
A = Maturity amount
P = Principal (deposit amount)
r = Annual interest rate (decimal)
n = Compounding frequency per year
t = Time in years
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Compounding Effect

More frequent compounding (monthly vs. annually) yields slightly more because interest earned is itself reinvested sooner. The difference compounds meaningfully over multi-year deposits or with large principals.

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When to Choose a Term Deposit

  • When you need guaranteed, risk-free returns
  • For short-to-medium term goals (1–5 years)
  • Parking an emergency fund or cash reserve
  • When stock or bond market volatility feels too high
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Tips

  • Laddering deposits across maturities gives regular access without breaking early
  • Compare rates across banks and online institutions — spreads can be 1–2%+
  • Interest is generally taxable as ordinary income — factor this in for net return
  • Deposit insurance limits vary by country — stay within guaranteed limits per institution
FAQ

Frequently Asked Questions

Common questions about term deposits and fixed deposits

Is term deposit / CD interest taxable?
In most countries, interest earned on term deposits and CDs is taxable as ordinary income in the year it accrues (even if not yet paid out). Your marginal income tax rate typically applies. Rules vary by jurisdiction — for example, the US taxes all CD interest annually, the UK has a Personal Savings Allowance (£500–£1,000 depending on your tax band) before interest is taxed, and India deducts tax at source above a threshold. Consult a tax adviser for your specific situation.
What happens if I withdraw early?
Most institutions charge an early withdrawal penalty, typically equivalent to several months of interest (e.g. 3–6 months for US CDs, or 0.5–1% on the applicable rate in other markets). The exact penalty depends on your institution and deposit terms. Some institutions offer penalty-free or flexible-access term deposits at slightly lower rates.
What is the difference between a reinvested and a payout deposit?
A reinvested (growth) deposit — also called cumulative — compounds interest and pays the full principal + interest at maturity. This maximises the compounding effect and is better for wealth building. A payout (income) deposit — also called non-cumulative — pays interest at regular intervals (monthly or annually) and returns the principal at maturity. This suits those who need periodic income, such as retirees.
How safe is my deposit?
Most countries have government-backed deposit insurance schemes that protect your funds up to a limit per depositor per institution. Common limits include: US — FDIC covers up to $250,000; UK — FSCS covers up to £85,000; EU — Deposit Guarantee Schemes cover up to €100,000; Australia — Financial Claims Scheme covers up to A$250,000; India — DICGC covers up to ₹5 lakh. If your deposit exceeds the limit, consider spreading across multiple institutions.
What are typical rates right now?
Rates vary significantly by country and economic conditions. As a rough guide (mid-2025): US (CDs) ~4.5–5.3%; UK (term savings) ~4.5%; EU ~2.5–3.5%; India (FDs) ~6.5–7.5%; Australia ~4.5–5%; Japan ~0.1–0.3%; Brazil ~10–12%. Always check your bank's current advertised rates before investing.

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