Term deposit: How we calculate
Formulas, rounding and assumptions for this calculation.
How we calculate
Simple interest = amount × rate / 100 × days / basis. Paid at maturity, without compounding or top-ups. Choose the basis from your bank contract. Tax, early withdrawal and renewal are excluded.
Simple interest rounds once to cents at payout. There is no interim compounding, additional contribution or monthly repayment schedule. Results are before taxes and fees. The number of days and the 360/365 basis must follow the contract; early termination and automatic renewal are not modelled.
Worked example
Deposit €1,000 at 3.65% annually for 30 days on basis 365. Interest = 1,000 × 3.65 / 100 × 30 / 365 = €3. Payout is €1,003 before tax. With the same rate and term but basis 360, rounded interest would be €3.04: the contractual day-count basis matters.