Compound Interest Calculator Sydney

Compound Interest Calculator for Sydney

Savings accounts and deposits in Sydney are priced off the Reserve Bank of Australia policy rate, which stood at 4.6% at the end of September 2026. National consumer price inflation was 3.94% in June 2026, so a saver earning exactly the policy rate would have a real return of 0.63% a year before tax.

Facts that change the answer

• Reserve Bank of Australia policy rate: 4.6% (September 2026, BIS series)
• Annual CPI inflation: 3.94% (June 2026)
• Real return at the policy rate: 0.63% per year (computed as (1 + 4.6%) / (1 + 3.94%) minus 1)
• Policy rate at each December: 2016 1.5%, 2017 1.5%, 2018 1.5%, 2019 0.75%, 2020 0.1%, 2021 0.1%, 2022 3.1%, 2023 4.35%, 2024 4.35%, 2025 3.6%
• Policy rate moves since January 2020 (month-end data): March 2020 0.75% to 0.25%; November 2020 0.25% to 0.1%; May 2022 0.1% to 0.35%; June 2022 0.35% to 0.85%; July 2022 0.85% to 1.35%; August 2022 1.35% to 1.85%; September 2022 1.85% to 2.35%; October 2022 2.35% to 2.6%; November 2022 2.6% to 2.85%; December 2022 2.85% to 3.1%; February 2023 3.1% to 3.35%; March 2023 3.35% to 3.6%; May 2023 3.6% to 3.85%; June 2023 3.85% to 4.1%; November 2023 4.1% to 4.35%; February 2025 4.35% to 4.1%; May 2025 4.1% to 3.85%; August 2025 3.85% to 3.6%; February 2026 3.6% to 3.85%; March 2026 3.85% to 4.1%; May 2026 4.1% to 4.35%; September 2026 4.35% to 4.6%
• In 3 of the last 10 years the December policy rate was above that year's average inflation

Worked example for Sydney

Start with AUD 15,000, add AUD 150 a month and use 4.6% compounded monthly. After 10 years you would have AUD 46,541 from AUD 33,000 of deposits; after 20 years AUD 96,460 from AUD 51,000. These amounts in Australian dollar are only examples; real deposit rates offered by banks in Sydney are usually below or above the policy rate depending on the term and the bank.

To see what that balance is worth in today's money, take inflation into account: at 3.94% a year, AUD 46,541 in ten years has the buying power of about AUD 31,618 now. Recent history for Sydney's currency: 2020: 0.1% rate vs 0.9% inflation, 2021: 0.1% rate vs 2.9% inflation, 2022: 3.1% rate vs 6.6% inflation, 2023: 4.35% rate vs 5.6% inflation, 2024: 4.35% rate vs 3.2% inflation, 2025: 3.6% rate vs 2.8% inflation.

If you hold the money in a fixed deposit, the rate you lock in matters more than the compounding frequency. On AUD 15,000 over 10 years at 4.6%, switching from yearly to monthly compounding adds only AUD 222, while a rate 1 point higher adds AUD 2,486.

Sources: BIS central bank policy rates · BIS consumer price statistics. Checked 5 November 2026. For how the maths works, see the Compound Interest Calculator guide.