Fixed Deposit Calculator

What a fixed deposit is, and what this calculator can't tell you

A fixed deposit is a bank account where you lock a lump sum away for an agreed term — a few months to several years — in exchange for a fixed interest rate for that term. In most cases you can't add to it once it's opened, and withdrawing early usually costs you an interest penalty. At maturity, the bank returns your deposit plus the interest earned.

Unlike PAYE bands or NSSF contribution rates, there is no single, published fixed deposit rate for Kenyan banks to look up. Each bank sets its own rate, and that rate typically varies further by deposit size, term, and how much you negotiate — banks generally quote better terms for larger deposits. Reported rates across the market span a wide range, roughly 3% to 9% a year, but that's a description of the spread, not a rate any specific bank has agreed to pay you. That's why this calculator asks for the rate you've actually been quoted, or your own working assumption, rather than presenting a default as fact.

Why the rate you enter matters this much

Because that reported range is wide, the rate you enter changes the outcome more than a one-year deposit might suggest. The table below runs the same KES 500,000 over the same one-year term at a few points inside that reported 3%–9% range, so you can see the spread in shillings rather than percentage points — it illustrates the range itself, not what any particular bank pays.

Computed directly from a KES 500,000 deposit held for 1 year at each rate shown — not a survey of actual bank offers. Confirm the rate on the table with your own bank before relying on it.

Worked example: KES 500,000 for 1 year at 7%

These are the calculator's own defaults. A KES 500,000 deposit at 7% a year, compounded monthly over 1 year, reaches a maturity value of about KES 536,145 — interest earned of about KES 36,145. Note that this is slightly more than a flat 7% of the deposit (which would be exactly KES 35,000): the calculator compounds monthly, which is a modelling convenience rather than a guarantee of how your specific bank credits interest. Some fixed deposits pay interest as a single lump sum at maturity instead — confirm your bank's actual crediting method and effective annual rate before comparing offers.

What this figure doesn't include

As the disclaimer below the calculator notes, the maturity value shown is before withholding tax on the interest and before any early-withdrawal penalty. If you're comparing a fixed deposit against building toward a target with flexible monthly contributions instead, the Savings Goal Calculator runs that side of the comparison.