Term Deposit Calculator

Think of a term deposit as a special savings jar. You put your money into this jar and seal it for a specific time, like six months or twelve months. While it’s sealed, your money is busy earning some extra money (that’s the interest). Once the time’s up, the jar is opened and you find more money in the jar than you initially put in, thanks to that interest. It’s a structured way to let your savings grow!

Here’s some things you should know:

• Interest rates for term deposits are set and don’t fluctuate. The rate established on the day you opt-in remains consistent throughout the entire term of the deposit.

• You can’t easily withdraw your funds from a term deposit. You’ll need to give at least 30 days’ notice, incur a fee, and accept a reduced interest rate to take out your money before the term ends. See our Fees and Charges for more information.

• The earnings from your savings in a term deposit will depend on the interest rate offered, the duration of the term, and the amount of money you put in.

Term deposits come with a set of distinct features that define how they operate. Here are the primary features of a term deposit:

• Fixed interest rate: Once you open a term deposit, the interest rate remains unchanged for the entire term, ensuring predictable returns.

• Fixed term: You choose the length of time you want to invest your money for, ranging from one month to twelve months, or longer upon enquiry.

• Minimum deposit: Most term deposits have a minimum amount required to open an account.
• Maturity options: At the end of the term, you can choose to redeem the deposit and interest, or reinvest and roll over into a new term deposit. You have 7 days after the deposit matures to amend or vary your deposit.

There are two main types of term deposits: short-term and long-term. 

Short-term deposits last from one month up to a year. They might not make as much money from interest due to their brief period, but a plus is that you aren’t tying up your money for too long. 

On the other hand, long-term deposits last from a year, or longer upon enquiry.

They’re a ‘set-and-forget’ type of saving. You’ll likely get a higher interest rate for keeping your money there longer, helping your savings grow.

You will need to keep your money in your term deposit account according to the agreed “term” or “tenure” of the deposit when opening the term deposit in order to gain the agreed earned interest. If you wish to withdraw your funds before the end of the agreed term you may be charged an early withdrawal fee as well as penalty interest. You must provide at least 30 days notice. For additional information please

We do! Speak to our friendly team at Illawarra Credit Union today about our term deposits.

Generally, yes. In Australia, the Australian Government guarantees deposits up to $250,000 per account holder per financial institution under the Financial Claims Scheme. Refer to our fees and charges.

This depends on your financial goals and market conditions. Long-term deposits might offer higher interest rates but tie up your money for longer. Short-term deposits offer flexibility but might have lower rates.

Make informed decisions about your savings, maximise your returns, and choose a term deposit that aligns best with your financial goals. Simply input parameters such as the principal amount, interest rate, and the duration of the term to determine how much money you’ll receive at the end of that period.

The calculator takes into account the deposit amount, the term that you wish to invest your funds for, and the rate that will be paid on your deposit over the set period.

Please refer to our term deposit page to view our current advertised rates.

Yes, you can break a term deposit before its maturity, but there might be penalties or reduced interest rates as a result. See our Fees and Charges for more information.

At the end of the term, you typically have a few options: withdraw both the principal and interest, reinvest the principal or both the principal and interest into a new term deposit, or let it roll over (see automatic rollover below).

Term deposits can be worth it if you’re looking for a low-risk investment option and are willing to lock away your money for a certain period. The return may be lower than riskier investments, but your capital is typically safe.

An automatic rollover is when, at the end of a term deposit term, Illawarra Credit Union automatically renews or “rolls over” your deposit for another term, often at the prevailing interest rate. If you don’t want this to happen, you need to instruct us before the maturity date.