Judo Bank is a neobank purpose built to be fast and nimble to help its customers capitalise on the right opportunities. Granted a banking license in 2019, Judo Bank is a business bank that lends to small to medium-sized enterprises (SMEs), however Judo also offers a very competitive range of personal term deposits.
If you’re curious about investing your savings in a term deposit through a neobank like Judo Bank, you can be confident that your hard-earned cash is in safe hands. Like all banking institutions granted an ADI license by APRA, Judo is covered by the government’s $250,000 deposit guarantee and subject to the same strict regulations.
What term deposits does Judo Bank offer?
Judo Bank offers a broad range of term deposit products to its customer base.
Pricing and Analytics Manager at Judo Mark Rout said term deposits support Judo’s core business of small and medium business (SME) lending, which is focused on providing Australian SMEs with the funding they need and the service they deserve.
“As at 30 June 2022, Judo’s deposit customers have invested $4.1 billion in our term deposits, providing valuable funding that supports Australian SMEs,” Mr Rout told Savings.com.au.
“In addition to supporting Australian SMEs, Judo Bank offers a variety of appealing and unique features to our term deposit customers.
“Judo Bank offers a loyalty bonus of 0.10% when rolling over your maturing term deposit, a range of term lengths from three months to five years, as well as zero account fees when setting up your term deposit account.”
Judo Bank currently offers term deposits ranging from 3-9 months and 1-5 years with interest calculated daily.
| Bank | Term Deposit | Interest Rate | Interest Frequency | Term | Automatic Rollover | Maturity Alert | Early Withdrawal Available | Minimum Deposit | Maximum Deposit | Notice Period to Withdraw | Account Keeping Fee | Online Application | Joint Application | Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
5.05% p.a. | At Maturity | 6 months | $1,000 | $1,000,000 | – | – | |||||||||||||
5.05% p.a. | At Maturity | 9 months | $1,000 | $1,000,000 | – | – | |||||||||||||
5.05% p.a. | At Maturity | 6 months | $1,000 | $1,000,000 | – | – |
| ||||||||||||
5.05% p.a. | At Maturity | 9 months | $1,000 | $1,000,000 | – | – | |||||||||||||
5.00% p.a. | Annually | 12 months | $1,000 | $1,000,000 | – | – | |||||||||||||
5.00% p.a. | Annually | 12 months | $1,000 | $1,000,000 | – | – | |||||||||||||
4.95% p.a. | At Maturity | 3 months | $1,000 | $1,000,000 | – | – | |||||||||||||
4.95% p.a. | At Maturity | 3 months | $1,000 | $1,000,000 | – | – | |||||||||||||
4.90% p.a. | Monthly | 12 months | $1,000 | $1,000,000 | – | – | |||||||||||||
4.90% p.a. | Monthly | 12 months | $1,000 | $1,000,000 | – | – |
Why choose a term deposit over savings accounts?
Mr Rout said term deposits offer a fixed rate of interest, giving customers certainty of their return.
“There are no qualification criteria to earn that return and no start up or ongoing fees,” he said.
Judo Bank term deposit features
Australian Government Guarantee
Deposits are protected under the Australian Government Guarantee up to a limit of $250,000 for each account holder at Judo Bank.
Loyalty bonus
If you roll over your maturing term deposit into a new Judo Bank term deposit, you can earn an additional 0.10% bonus interest on top of the standard term deposit rates for the new term.
Flexibility
Judo Bank term deposits allow customers to manage your cashflow better with three attractive interest payment frequencies – monthly, yearly or at maturity – across a range of term lengths (3, 6, 9, 12, 24, 36, 48 and 60 months).
Fee free
There are no set-up fees to get started with this account and there are no ongoing account-keeping fees to worry about.
Judo Bank will however charge a break cost for early withdrawal. This cost is relative to the length of the term that has expired.
Customers will need to provide a written request to withdraw at least 31 days beforehand unless experiencing financial hardship.
Competitive interest rates
Judo Bank prides itself on having market-leading rates, aiming to continue to offer great returns to customers.
How to apply for a Judo Bank term deposit
To apply for a Judo Bank term deposit, the following requirements must be met:
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Over the age of 18
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Be an Australian resident, residing in an Australian residential address
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Deposit at least $1,000
Required documents
To open an account with Judo, you’ll need the following documents and personal information:
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A minimum of two of the following: Australian drivers license, passport and Medicare card
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The details of your nominated bank account (BSB, account number etc.)
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Your tax file number (TFN)
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Your mobile number and email address
For joint applications, each applicant requires a unique email address
What to do when your Judo term deposit ends?
When your Judo term deposit reaches maturity, one of two things will happen:
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You will be paid the entire balance (plus interest) into your bank account at the maturity date, or
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The entire amount will default into a new term deposit of the same term (but not necessarily the same interest rate)
If no instructions are provided to Judo Bank before you reach maturity, it will default to the second option and you’ll face automatic rollover. Judo Bank term deposits have a grace period of 10 days where you can withdraw or top up the money without penalty.
Image by Melissa Walker Horn via Unsplash
Denise Raward
Harry O'Sullivan
