THE TOOLS ADVISERS USE. FREE FOR EVERY NEW ZEALANDER.
About Ledger BlackAdviser sign in
Ledger BlackTalk to an adviser

FREE TOOLS / Investing

Term deposit

What the bank actually pays you. Interest at maturity, after the tax comes out, before you lock the money away.

Make it your own

Start with an example, then change any value. Enter 0 for none; a blank field cannot be calculated. All money amounts are NZD.

Your entries stay in this calculator. They are not saved or sent anywhere.

Your estimate

Estimated amount at maturity

$20,536.00

Principal plus net interest after 12 months, with interest paid once at maturity and 33% assumed RWT deducted.

Gross interest
$800.00
RWT deducted
$264.00
Net interest
$536.00
What this estimate assumes
  • Simple interest is paid once at maturity; it is not reinvested during the term. Time is whole months divided by 12, not a bank-specific daily basis.
  • The entered RWT percentage is deducted from gross interest. The default is illustrative, not a determination of your correct tax rate; confirm your elected rate and eligibility.
  • No fees, early-withdrawal adjustments or inflation are included. This is not a deposit offer or a guarantee of returns.

How to read this tool, in plain English

For information only, not financial advice. These simplified estimates do not consider your full circumstances. Assumed rates are not forecasts or guaranteed returns. Talk to a financial adviser before making financial decisions.

HOW TO READ THIS TOOL

What the bank actually pays you.

Net, not gross

The headline is what comes back at maturity after the withholding tax you enter. Gross interest, tax and net interest are shown separately.

Before you lock it in

Money in a term deposit is committed for the term. See the return before you decide it is worth the wait.

Whole months, simple interest

The model pays interest once at maturity, the simplest common structure. Other payment frequencies will differ slightly.

How the model works

Simple interest on the deposit for the term, using whole months divided by twelve. Interest is paid once at maturity and is not reinvested during the term. The RWT percentage you enter is deducted from gross interest.

What it leaves out

Banks accrue interest daily, so their figure will differ a little. Fees, early-withdrawal penalties, inflation and the option of interest paid monthly or quarterly are not modelled. The default RWT rate is illustrative, not a determination of your correct rate.

The assumptions, in full

  • Simple interest is paid once at maturity; it is not reinvested during the term. Time is whole months divided by 12, not a bank-specific daily basis.
  • The entered RWT percentage is deducted from gross interest. The default is illustrative, not a determination of your correct tax rate; confirm your elected rate and eligibility.
  • No fees, early-withdrawal adjustments or inflation are included. This is not a deposit offer or a guarantee of returns.

A FEW GOOD QUESTIONS

Before you
trust the number.

An estimate is only as good as the question behind it. These are the ones people ask most about this tool.

All ten tools
What RWT rate should I use?

The resident withholding tax rate you have elected with the bank, which should match your income. The default here is only an example. If no rate is elected, a higher non-declaration rate can apply. Check with the bank or your accountant.

Is the interest rate guaranteed?

The rate on a term deposit is fixed for the term once it starts, which is the main appeal. What is not guaranteed is that it beats inflation, or that you will not need the money early.

What about compounding?

This tool pays interest once at maturity, so there is nothing to compound during the term. A deposit with interest paid quarterly and reinvested earns slightly more. On short terms the difference is small.

YOUR MONEY. YOUR CALL.

Stop guessing.
Start knowing.

Use the tools right now, no sign-up. When you want a real adviser, tell us what’s on your mind and we’ll match you properly.

Talk to an adviser