Fixed Deposit Calculator UK

Calculate Fixed Deposit Returns Fixed Deposit

Deposit Amount (£)

Amount you want to deposit.

Annual Interest Rate (%)

Fixed interest rate for the deposit.

Term (years)

Length of the fixed deposit in years.

Compound Frequency

How often interest is compounded.

Fixed Deposit: Guaranteed returns with fixed interest rate for a fixed term.

Example £10,000 @ 4.5% for 3 years → ~£11,412 maturity

Fixed Deposit Summary

Enter your fixed deposit details, then click Calculate Fixed Deposit.

What Is a Fixed Deposit?

A fixed deposit (also known as a fixed-rate bond or term deposit) is a savings product where you lock your money away for a fixed period at a fixed interest rate. This fixed deposit calculator UK helps you calculate your returns.

How to Use the Fixed Deposit Calculator

Enter your deposit amount, annual interest rate, term in years and compound frequency. Click Calculate Fixed Deposit to see your maturity amount and interest earned.

How Fixed Deposit Returns Are Calculated

Maturity Amount = Deposit × (1 + Rate/n)^(n×Term)
Interest Earned = Maturity Amount - Deposit

Fixed Deposit Example

Example: £10,000 deposit, 4.5% interest, 3 years, annual compounding

Deposit: £10,000
Interest rate: 4.5%
Term: 3 years
Maturity amount: £11,412
Interest earned: £1,412

Understanding Fixed Deposits

Fixed Rate: Rate is fixed for the entire term
Fixed Term: Money is locked in for the term
Guaranteed Returns: Returns are guaranteed
Compound Interest: Interest earned on interest
FSCS Protected: Up to £85,000 per institution

Current UK Fixed Deposit Rates (2025/26)

1 Year Fixed: 4.0-5.0%
2 Year Fixed: 4.5-5.5%
3 Year Fixed: 4.0-5.0%
5 Year Fixed: 3.5-4.5%

Compound Frequency Guide

Annually: Interest compounded once per year
Semi-Annually: Interest compounded twice per year
Quarterly: Interest compounded four times per year
Monthly: Interest compounded 12 times per year
Daily: Interest compounded 365 times per year

Fixed Deposit vs Savings Account

Fixed Deposit: Higher rates, fixed term, no access
Savings Account: Lower rates, flexible access, variable rates

Common Fixed Deposit Mistakes

Not comparing rates — shop around for best rates
Locking in for too long — rates may rise
Not understanding penalties — early withdrawal fees
Ignoring tax — interest is taxable
Not using ISA — tax-free wrapper available

Important: This calculator provides estimates only. Actual rates may vary. Early withdrawal usually incurs penalties. Always check terms and conditions.

Important Assumptions and Limitations

Assumes fixed interest rate for the entire term
Does not account for tax or inflation
Early withdrawal penalties not included
Results are estimates, not guaranteed

Frequently Asked Questions

What is a fixed deposit? +

How is fixed deposit interest calculated? +

What is a good fixed deposit rate? +

Can I withdraw money early from a fixed deposit? +

Is a fixed deposit safe? +

What is the difference between fixed deposit and savings account? +

Are the results exact? +

Written and reviewed by Abdul Wahid

Financial content specialist with a focus on UK savings and personal finance.

For savings planning, visit our Savings Account Calculator UK. For term deposits, try our Term Deposit Calculator UK.