Term Deposit Break Cost Calculator

Breaking a term deposit before it matures almost always costs you interest, because the bank recalculates your return at a lower rate for the time your money was actually invested. This Term Deposit Break Cost Calculator estimates that cost so you can decide whether early access is worth it. You enter the deposit amount, the agreed interest rate, the reduced rate the bank will apply if you break early, and the number of days that have already passed. The tool works out the interest you would have earned at the agreed rate for those days, the interest you actually receive at the reduced rate, and the difference, which is the penalty you give up. For example, a $20,000 deposit at 5 percent that is broken after 180 days, with the rate cut to 2.5 percent, earns $493.15 at the agreed rate but only $246.58 at the reduced rate, a penalty of $246.58. Savers needing cash early, people comparing a break against a short-term loan, and anyone weighing up reinvesting at a higher rate use this to see the real cost before they ring the bank. Good practice is to check your deposit terms for the exact reduction the bank applies, since some scale it by how early you break, and to ask whether any flat administration fee is charged on top. Compare the penalty against the benefit of having your money now, and consider a partial withdrawal if your bank allows one. Figures are an estimate, so confirm the reduced rate with your bank.

Interest = principal x rate x days / 365. Penalty = interest at agreed rate - interest at reduced rate. Estimate only, not financial or tax advice.