Calculator

Term deposit

See what a locked-in term deposit earns after tax, in total at maturity or as a regular payment. Change the rate, holding period or your tax rate to see how the numbers move. Inputs stay on your device.

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In months. Common terms are 6, 9, 12, 18 and 24. Longer terms lock your money for longer.

At maturity
Monthly
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A PIE term deposit uses your prescribed investor rate (10.5%, 17.5% or 28%). A standard deposit uses resident withholding tax, up to 33%.

Simple annual interest over the term. Does not model early-withdrawal penalties or compounding across renewals.

Maturity value
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Gross interest
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before tax
Tax on interest
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at your rate
Net interest
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Common questions

Term deposit questions, answered

How much interest does a $50,000 term deposit earn in New Zealand?

At an annual rate of 5%, a $50,000 term deposit over 12 months earns about $2,500 gross interest. After tax at a 28% rate that is about $1,800 net, so you receive about $51,800 at maturity. Rates vary by term, provider and whether you use a standard or PIE term deposit.

Are term deposit rates annual and simple or compounding?

NZ term deposit rates are almost always quoted as a simple annual rate over the deposit term; unless you renew and the interest is rolled over and reinvested, it does not compound mid-term. The deposit sits locked until maturity in return for the agreed rate.

How is term deposit interest taxed in New Zealand?

Interest on a standard term deposit has resident withholding tax (RWT) deducted at up to 33%, based on the rate you have given your bank. Some banks offer a PIE term deposit where interest is taxed at your prescribed investor rate of 10.5%, 17.5% or 28% instead. You confirm your rate when you open the deposit.

What happens if I withdraw a term deposit before maturity?

Most NZ term deposits charge a break fee or reduce the interest paid if you withdraw early, and some are not redeemable until maturity at all. Any cash you might need soon is usually better in an on-call savings account. A term deposit rewards you for agreeing to lock your money away.