FIRE-calculator
Gebruik deze tool om eenvoudig FIRE te berekenen en te ontdekken hoeveel je moet investeren om 100% van je uitgaven te dekken.
Rekenhulp voor financiële onafhankelijkheid
Results
Net interest you receive
Total gross interest
Tax withheld
Estimated net annual rate
Capital + gross interest
Total amount you receive at maturity
These results are indicative simulations and do not constitute financial advice. Always confirm the actual deposit terms with your financial institution.
Earnings breakdown
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Total value
Invested capital
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Net interest
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Glossary
What is withholding tax?
Withholding tax is the tax that the bank automatically deducts from your term deposit interest before paying it to you.
In most European countries, interest on deposits is taxed at a flat rate, and in many of them the bank withholds it at source. For example, with a 30% rate, for every €100 in gross interest you receive €70 net.
Whether the withholding is final or whether you still need to declare the interest in your annual tax return depends on your country of tax residence. If in doubt, check the rules that apply to you or ask a tax advisor.
In most European countries, interest on deposits is taxed at a flat rate, and in many of them the bank withholds it at source. For example, with a 30% rate, for every €100 in gross interest you receive €70 net.
Whether the withholding is final or whether you still need to declare the interest in your annual tax return depends on your country of tax residence. If in doubt, check the rules that apply to you or ask a tax advisor.
What does 'interest payment frequency' mean?
The payment frequency defines when you receive the interest on your deposit. The most common options are:
- At maturity: you receive all the interest in a single payment at the end of the deposit term. This is the simplest and most common option.
- Monthly, quarterly, semi-annual, or annual: you receive interest at regular intervals during the deposit term. This can result in a slightly higher return if you reinvest the interest (compounding effect).
The choice of payment frequency can affect the total amount received, especially on longer-term deposits.
What is interest compounding?
Compounding occurs when the interest earned is added to the principal and begins to generate additional interest in subsequent periods.
In a deposit with interest paid at maturity, there is no compounding — interest is calculated only on the initial amount.
When interest is paid periodically (monthly, quarterly, etc.) and reinvested, there is a compounding effect that results in a slightly higher return. To see the long-term impact of this concept, try our compound interest calculator.
In a deposit with interest paid at maturity, there is no compounding — interest is calculated only on the initial amount.
When interest is paid periodically (monthly, quarterly, etc.) and reinvested, there is a compounding effect that results in a slightly higher return. To see the long-term impact of this concept, try our compound interest calculator.
How is term deposit interest calculated?
The simulator uses the following logic:
- It calculates gross interest based on the deposit amount, the gross annual interest rate, and the deposit term, using the actual/360 convention (the standard basis in the euro money market, used by most European banks).
- It applies the tax rate (withholding tax) to the gross interest to determine the tax withheld.
- It subtracts the tax from the gross interest to obtain the net interest — your actual gain.
The base formula is: Gross interest = Amount × Gross annual rate × (Number of days ÷ 360). For payment frequencies other than at maturity, the calculation accounts for compounding.
What is the applicable tax rate?
In Europe, the tax on term deposit interest depends on your country of tax residence. Indicative rates for individual residents:
- Italy: 26%, withheld at source
- Portugal: 28%, withheld at source
- France: 30% flat tax (PFU)
- Belgium: 30% (the first ~€1,020 per year of interest on regulated savings accounts is exempt)
- Germany: 26.375% (25% flat tax plus solidarity surcharge)
- Spain: 19% to 30%, under progressive savings-income brackets
- Ireland: 33% (DIRT)
- Netherlands: no withholding on interest; savings are taxed under the box 3 deemed-return system
These rates change over time and exemptions may apply, so set the rate that applies to your situation in the calculator and confirm with your bank or a tax advisor.
Can I use the simulator to compare deposits from different banks?
Yes. The simulator is especially useful for comparing offers from different banks by changing the gross annual rate while keeping the other parameters the same.
However, the comparison should take into account each bank's specific conditions, including fees, minimum amounts, and early withdrawal terms.
To help with your research, check our updated list of the best high-yield euro savings accounts in Europe and our comparison of the best online banks in Europe.
However, the comparison should take into account each bank's specific conditions, including fees, minimum amounts, and early withdrawal terms.
To help with your research, check our updated list of the best high-yield euro savings accounts in Europe and our comparison of the best online banks in Europe.
Can I withdraw my money before maturity?
It depends on the terms of your specific deposit. Early withdrawal rules vary by country and by bank: some term deposits can be redeemed early, while others are "non-redeemable" until maturity.
When permitted, early withdrawal is usually subject to penalties, the most common being the total or partial loss of the interest accrued up to the withdrawal date.
Always check the specific conditions in the pre-contractual information your bank is required to provide before you open the deposit.
When permitted, early withdrawal is usually subject to penalties, the most common being the total or partial loss of the interest accrued up to the withdrawal date.
Always check the specific conditions in the pre-contractual information your bank is required to provide before you open the deposit.
Are term deposits safe?
Yes. Deposits held at banks authorised in the EU are protected by national Deposit Guarantee Schemes, harmonised by EU rules, which cover up to €100,000 per depositor per institution.
This means that even if the bank fails, your money is protected up to this limit.
For amounts exceeding €100,000, you may consider spreading your capital across different institutions to maintain full coverage. To understand who supervises banks in each country, see our overview of financial regulators in Europe.
This means that even if the bank fails, your money is protected up to this limit.
For amounts exceeding €100,000, you may consider spreading your capital across different institutions to maintain full coverage. To understand who supervises banks in each country, see our overview of financial regulators in Europe.
Are the results final?
No. The results are simulations and do not constitute financial advice.
The calculator uses the actual/360 convention (actual days elapsed over a commercial year of 360 days), which is the general convention of the euro money market and the basis used by most European banks for term deposits in euros.
Nevertheless, some specific products may apply different bases (such as 30/360 or actual/365), and actual values may vary depending on fees, tax withholding, and other deposit conditions.
Always confirm the actual terms of the deposit directly with your financial institution.
The calculator uses the actual/360 convention (actual days elapsed over a commercial year of 360 days), which is the general convention of the euro money market and the basis used by most European banks for term deposits in euros.
Nevertheless, some specific products may apply different bases (such as 30/360 or actual/365), and actual values may vary depending on fees, tax withholding, and other deposit conditions.
Always confirm the actual terms of the deposit directly with your financial institution.
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