Calculate the purchase amount, gross interest, 15% withholding tax, and net interest on a short-term bank or institutional placement.
A Short Term Placement is a fixed-term deposit with a bank or financial institution, priced and taxed exactly like Commercial Paper — a discount instrument with a fixed 15% withholding tax on the interest earned. The Short Term Placements Calculator runs the same calculation, so you can compare a placement offer against Commercial Paper or a Treasury Bill on equal terms.
How Is a Short Term Placement Priced?
Enter the face value (the amount you're placing), the tenor in days, and the interest rate your bank has quoted. The calculator discounts the face value at that rate over the tenor — the same bank-discount formula used across all discount instruments on this site — to show the amount you actually place today versus what you receive back at maturity.
How Much Tax Applies?
A fixed 15% withholding tax is deducted from the interest earned on a Short Term Placement, matching the treatment of Commercial Paper. The results show your gross interest, the withholding tax withheld, and your net interest after tax — the figure that actually reaches your account.
What Should I Compare This Against?
Use the net annualised yield figure to compare a placement offer against a Treasury Bill or Commercial Paper at the same tenor — Treasury Bills carry no withholding tax on this site's calculator, so a Short Term Placement needs a meaningfully higher quoted rate to match a T-Bill's after-tax return. Placement rates are set individually by each bank or institution and are usually negotiable for larger amounts, so treat the rate you enter as a starting point to confirm directly with your relationship manager.