Banky's short- and long-term time deposit interest calculator helps you estimate the return you could earn on a deposit, based on the amount deposited with the bank, the annual interest rate, the deposit tenor and the payout frequency. Enter your deposit details in the calculator to see the expected return in EGP, and try different amounts, rates or tenors to compare scenarios before opening the deposit that suits you.
How do you use the time deposit interest calculator?
The calculator works from three main inputs, running the calculation automatically and showing the result:
1. Deposit amount: the principal you want to place with the bank as a deposit (for example, EGP 100,000).
2. Deposit tenor: the period over which you invest your money (in days, months or years).
3. Interest rate (return): the annual percentage set by the bank according to the deposit tenor and currency.
After entering the details, press "Calculate" to see the estimated return. You can change any of the inputs and recalculate to see how the amount, interest rate, tenor or payout frequency affects the result.
How do you read the deposit calculator's results?
The deposit calculator
is an online tool that lets customers see the expected return, or profit, they will earn from depositing a given amount of money for a set period.
After you enter the details, Banky's calculator shows a set of figures that help you turn the annual interest rate into a money amount you can understand and compare.
Return per payout period
This is the estimated amount you receive on each payout date. If the calculator shows EGP 1000 a month, for example, the estimated return for each monthly payment is EGP 1000 based on the data you entered. If the payout frequency is quarterly, the per-period figure is the expected return every 3 months. The annual return is the total estimated return the certificate value earns over a full year at the interest rate you entered. The cumulative return is the amount you will receive on your savings at the end of the deposit tenor (when the deposit matures). The upfront return is the amount you receive on your money for the deposit's entire tenor as soon as you open it with the bank.
So if the deposit is EGP 100,000 and the annual interest rate is, say, 16%, the estimated annual return is EGP 16000 a year.
Total return over the certificate's tenor: This is the sum of the estimated returns over the entire period you entered. If the annual return is EGP 16000 and the same rate holds for 3 years, the total estimated return = EGP 48000. This figure represents the return only, not the deposit principal.
What is a time deposit?
Put simply, a time deposit is a short- to medium-term investment tool developed by financial institutions to help you save money and earn an attractive return. A time deposit is the right investment if you want to put your surplus income to work without exposure to other, more complex investment options; it is like keeping your money in a safe place, out of reach of spending, for a set period.
Deposit principal
This is the amount you used to open a deposit. If you open a deposit of EGP 100,000, that EGP 100,000 is the principal deposited, while the other amounts are the return it generates. Principal + total return: adding the two figures shows you the total value of the time deposit principal plus the returns earned over the tenor. Here, savers should be aware of a few questions, including:
What is the difference between savings certificates and time deposits?
Savings certificates have tenors of three to five years, while time deposits range from one week to two years. In addition, the redemption value of a savings certificate can only be paid out after 6 months or a year from the issue date, whereas time deposits carry no such condition, making them ideal for customers seeking quick returns. If you are wondering what this condition means, it is the period during which you are not allowed to withdraw or redeem your money.
Is investing in time deposits safe?
Time deposits are a safe, low-risk investment tool that guarantees you a fixed return on your savings over a set period.
Are time deposits available only in Egyptian pounds?
No. Time deposits are available in Egyptian pounds, US dollars, pounds sterling, euros, Saudi riyals and UAE dirhams, with different payout frequencies. These financial terms may seem complicated.
Making the right decision when choosing an investment tool
There is no need to worry about these financial terms: savings certificates and time deposits are easy to understand and do not carry high administrative fees, and you do not need deep financial knowledge to save money with a bank.
Which savings tool should I start with?
There are many investment tools to choose from, but if you have never invested before, time deposits suit you best thanks to their flexibility and low risk. If you want to save money to reach your future goals or to control your spending, investing in a time deposit is the ideal choice for you. And since securing your financial future takes good planning, it is best to start now — you will be glad you did.
What does the calculator's result tell you?
The calculator is not only there to answer the question "How much will I earn?".
You can use it to test more than one scenario before making your decision. For example, try:
What happens if you raise the deposit from EGP 100,000 to EGP 250,000?
What does the return become at 18% instead of 16%?
What is the return over one year or less than a year, compared with 3 years or more?
How much is each payment under the payout frequency?
This way, the interest rate turns from a mere percentage into an actual amount in EGP that you can understand and compare.
What does Banky's calculator assume?
To read the result correctly, it is important to know the assumptions behind the calculator. The result depends on the data you enter, and it assumes:
The interest rate you entered holds for the entire period being calculated.
The deposit principal stays unchanged during the calculation period.
The deposit is not redeemed before the end of the tenor you entered.
Interest is calculated according to the specified annual interest rate and payout frequency.
Returns paid out to you periodically are not automatically reinvested.
The product terms issued by the bank are the final reference for calculating the return.
A worked example of the calculation
If you deposit EGP 100,000 for a full year at an annual interest rate of 10%:
Annual return formula: deposit amount × interest rate
Calculation: EGP 10000
Result: the total amount due at maturity is EGP 110,000 (or the return is paid out according to the bank's set payout frequency). You can try the calculation directly on Banky.
What is the difference between a fixed and a floating return?
Fixed return: the deposit's interest rate stays fixed throughout its tenor under the product terms, so the expected return can be estimated from the moment the deposit is opened, provided the customer holds it under the specified terms.
Floating return: the interest rate can change during the deposit's tenor according to the reference benchmark and the pricing mechanism set out in the product terms, and the return may rise or fall as that benchmark changes. So if you use today's rate in the calculator for a floating-rate deposit, the result is an estimated scenario that assumes the rate continues, not a firm forecast of the total future return.
What does payout frequency mean?
The payout frequency is the schedule on which the customer receives the deposit's return under the product terms. The return may be paid:
Upfront — paid in a single lump sum when the deposit is opened
Monthly — usually 12 payments a year.
Quarterly — usually 4 payments a year.
Semi-annually — usually two payments a year.
Annually — one payment a year.
At maturity — according to the product's terms and calculation method.
Does the payout frequency change the value of the return?
Payout frequency alone is not enough to determine which deposit earns a higher return. A bank may set different interest rates for different deposits or payout frequencies, so you should compare each product's advertised interest rate alongside its payout frequency. Likewise, receiving interest monthly does not automatically mean it is reinvested or earns compound interest.
Can you break a deposit before maturity?
Early redemption rules vary from one deposit to another and from one bank to another. A bank may allow a deposit to be redeemed after a set period from the purchase date, applying rules or deductions to the return under the product's redemption schedule, so the redemption value of a deposit cannot be known precisely from the interest rate alone.
If you expect to need your money before maturity, check the following:
When is redemption allowed?
How is the return recalculated?
What is the deduction, or what are the redemption schedule rules?
An illustrative example of breaking a deposit
Amount: EGP 1,000,000; interest rate: 20.00%
Early-breaking penalty
Year one (after 6 months): 16.00%
Year two: 15.00%
Year three: 14.00%
Formula: deposit amount × days elapsed in the deposit's life / days in the year × penalty %
Days elapsed: 240 in year one / 450 in year two / 840 in year three
Penalty: EGP 105,205 in year one, 184,932 in year two and 322,192 in year three
How do you compare deposits properly?
For a more accurate comparison, try to compare similar products.
Compare:
Interest rate
How much does the deposit pay?
Type of return
Fixed or floating?
Tenor
How long will your money stay tied up in the deposit?
Payout frequency
When do you receive the return?
Minimum purchase
How much do you need to start investing?
Purchase multiples: must the certificate be bought in set amounts or multiples?
Early redemption: when can you get your money back, and how does that affect the return?
Other benefits, such as the option to borrow or be issued a card secured against the deposit, if the product allows it.
How do you use the calculator to compare two deposits?
Suppose you are choosing between two deposits with the same tenor but different rates or payout frequencies.
Enter the first deposit's details and note the return per period + the annual return + the total return, then enter the second deposit's details and compare the results. But don't let the calculator's result alone settle the comparison: also review the type of return, the redemption terms, the minimum and the other terms of each product.