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Term Deposit & HISA Savings Calculator

Fixed Term Deposits vs Bonus High-Interest Savings • Monthly Compounding • Marginal Tax Drag (ATO)

Savings & Investment Inputs

Compare guaranteed term deposits with high-interest bank accounts.

Initial Deposit Amount ($) $50,000

Investment Term

Term Deposit (% p.a.) Fixed rate (locked)

HISA Rate (% p.a.) Base + bonus (floating)

Monthly Contribution to HISA ($/mo)

Term deposits cannot receive recurring monthly deposits

Your Marginal Tax Rate Bank interest is treated as ordinary taxable income

Comparison Outcome HISA LEADS BY +$412

$58,740

HISA Ending Balance

Generates $2,740 in total interest vs $2,425 for the locked term deposit.

Term Deposit (Locked) $52,425 Interest: +$2,425 (Net: +$1,649 after tax)

High-Interest Savings Account $58,740 Interest: +$2,740 (Net: +$1,863 after tax)

Gross vs After-Tax Real Returns

Vehicle	Advertised Rate	Gross Interest	ATO Tax Drag	Net Return

Term Deposit vs HISA: Key Tradeoffs

Guaranteed Return vs Liquidity

A term deposit locks in a guaranteed interest rate for a predetermined period (e.g. 12 months). If the Reserve Bank of Australia (RBA) cuts the cash rate, your return is completely shielded. However, you cannot withdraw your funds early without notice and interest penalties, and you cannot make regular monthly additions.

The Australian Government Deposit Guarantee (FCS)

Under the Australian Government Financial Claims Scheme (FCS), deposits up to $250,000 per account holder per authorized deposit-taking institution (ADI) are 100% legally guaranteed by the federal government. Both term deposits and savings accounts with Australian banks benefit equally from this protection.