Judo Bank Term Deposit Review

By:
On:
In: Judo waza

Are you looking to set aside savings to achieve a specific goal? Judo Bank offers a competitive range of term deposits to help you grow your money.

Judo Bank is a neobank designed to be fast and agile to help its customers take advantage of the right opportunities. Receiving a banking license in 2019, Judo Bank is a merchant bank that lends to small and medium-sized enterprises (SMEs), but Judo also offers a very competitive range of personal term deposits.

If you are curious about investing your savings in a term deposit through a neobank like Judo Bank, you can be sure that your hard-earned money is in safe hands. Like all banking institutions licensed by ADI 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 wide range of term deposit products to its customers.

Judo’s head of pricing and analytics, Mark Rout, said term deposits support Judo’s core business of small and medium-sized enterprise (SME) lending, which aims to provide SMEs Australians the funding they need and the service they deserve.

“As of June 30, 2022, Judo 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 attractive and unique features for our term deposit customers.

“Judo Bank offers a 0.10% loyalty bonus when renewing your maturing term deposit, a range of tenors from three months to five years, and zero account fees when setting up your term deposit account.”

Judo Bank currently offers term deposits ranging from 3 to 9 months and 1 to 5 years with interest calculated daily.

Rates based on a balance of $50,000. The table only includes an overview of the supplier’s products, not all of them. Rates correct as of September 14, 2022. See disclaimer.

Why choose a term deposit rather than a savings account?

Mr Rout said term deposits offer a fixed rate of interest, giving clients certainty of their return.

“There are no qualifying criteria to earn this comeback and no start-up or ongoing costs,” he said.

Judo Bank Term Deposit Features

Australian Government Guarantee

Deposits are protected by the Australian Government guarantee up to a limit of $250,000 for each account holder at Judo Bank.

Loyalty bonus

If you transfer your maturing term deposit to a new Judo Bank term deposit, you can earn an additional bonus interest of 0.10% on top of the standard term deposit rates for the new term.

Flexibility

Judo Bank term deposits allow customers to better manage their cash with three attractive interest payment frequencies – monthly, annually or at maturity – over a range of terms (3, 6, 9, 12, 24 , 36, 48 and 60 months).

Free

There are no account opening fees to get started with this account and there are no ongoing account maintenance fees to worry about.

Judo Bank will however charge termination fees in case of early withdrawal. This cost is relative to the length of the term that has expired.

Customers will need to provide a written withdrawal request at least 31 days in advance, except in cases of financial hardship.

Competitive interest rates

Judo Bank prides itself on having market leading rates, aiming to continue to deliver excellent returns to customers.

How to Apply for a Judo Bank Term Deposit

To apply for a Judo Bank term deposit, the following conditions must be met:

Required documents

To open an account with Judo, you will need the following documents and personal information:

  • A minimum of two of the following: Australian driving licence, passport and health insurance card

  • Your nominated bank account details (BSB, account number, etc.)

  • Your tax file number (TFN)

  • Your mobile number and email address

For joint applications, each applicant needs a unique email address

What to do at the end of your Judo term deposit?

When your Judo term deposit matures, one of two things happens:

  • You will receive the full balance (plus interest) in your bank account on the due date, or

  • The total amount will default to a new term deposit of the same duration (but not necessarily at the same interest rate)

If no instructions are provided to Judo Bank before you reach maturity, the second option will be used by default and you will face an automatic rollover. Judo Bank term deposits have a 10-day grace period during which you can withdraw or top up the money without penalty.

Image by Melissa Walker Horn via Unsplash