Fixed Deposit Calculator
Calculate the maturity value of a Hong Kong dollar time (fixed) deposit.
Input Data
Results
At a glance:A Time Deposit (Fixed Deposit) locks a principal with a bank for a fixed term (e.g. 1, 3, 6, 12 months) and returns the principal plus agreed interest at maturity. Short Hong Kong dollar time deposits usually pay once at maturity (simple interest): interest = principal × annual rate × (months ÷ 12). With auto-rollover or a compounding product, total = principal × (1 + annual rate ÷ 12)^months. Deposits are protected by the Deposit Protection Scheme.
Formula
Pay at maturity (simple): interest = principal × annual rate × (months ÷ 12).
Monthly compounding: total = principal × (1 + annual rate ÷ 12)^months.
Interest earned = maturity value − principal.
$$\text{Interest}_{\text{simple}} = P \times r \times \dfrac{m}{12}$$$$\text{Total}_{\text{compound}} = P \times \left(1 + \dfrac{r}{12}\right)^{m}, \quad m = \text{months}$$How to Use
- Enter the deposit principal and annual rate.
- Set the deposit term and choose the interest basis.
- Interest earned and maturity value are shown instantly.
Maturity interest on a HK$200,000 principal at different annual rates and terms (simple interest)
| Term | Rate 2% | Rate 3.5% | Rate 5% |
|---|---|---|---|
| 3 months | Interest HK$1,000 | Interest HK$1,750 | Interest HK$2,500 |
| 6 months | Interest HK$2,000 | Interest HK$3,500 | Interest HK$5,000 |
| 12 months | Interest HK$4,000 | Interest HK$7,000 | Interest HK$10,000 |
Based on HK$200,000 principal, interest paid at maturity (simple interest). For reference only.
Case Studies
Case 1: Compare two banks for 12 months
Bank A offers 2% p.a., Bank B offers 3.5% p.a., both paying at maturity on HK$200,000.
Bank A interest = 200,000 × 2% × 1 = HK$4,000; Bank B = 200,000 × 3.5% × 1 = HK$7,000.
Choosing Bank B earns HK$3,000 more for the same lock-up — always shop around before committing.
Case 2: Short vs long term at the same rate
At 5% p.a. on HK$200,000: 3 months interest = 200,000 × 5% × 0.25 = HK$2,500.
12 months interest = 200,000 × 5% × 1 = HK$10,000 — four times the 3-month amount.
Longer terms usually pay more, but tie up your cash; balance liquidity against return.
FAQ
What is the difference between a time deposit and a savings account?
A time deposit locks the principal for a fixed term at a agreed rate and usually pays at maturity; a savings account is flexible but pays a lower rate. Early withdrawal from a time deposit often forfeits interest.
Simple interest vs monthly compounding — which pays more?
Monthly compounding reinvests interest each month, so it pays slightly more than simple (maturity) interest for the same nominal rate and term.
Is my deposit protected?
Eligible deposits in Hong Kong are protected by the Deposit Protection Scheme up to HK$800,000 per depositor per scheme member. Check the DPS website for details.
How is the maturity value taxed?
Hong Kong has no general interest-income tax for individuals, but rules can change and non-residents may differ; consult the relevant authorities or a tax professional.
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References
Content review: Calculatorism Finance Team. Results are for reference only; please refer to the relevant authorities for the official figures.