While SME lending is its primary focus, Judo also offers a range of term deposit products. In 2023, its term deposit base grew to $6 billion, a $1.9 billion or 46% increase. This is another crucial source of funding for its small business loans, helping the bank become self sustaining.

Judo offers term deposits for businesses, self managed super funds (SMSF), as well as individual customers. Being a neobank, the term deposit products are online only, but are still guaranteed under the Financial Claims Scheme, which guarantees customers are reimbursed for deposits up to $250,000 in the event the bank becomes insolvent.

Who can get a term deposit with Judo?

Only Australian citizens or permanent residents, who are over the age of 18, are eligible to open a Judo term deposit. Those who apply are asked to provide the following:

  • Any two of: Australian drivers licence, Australian passport or Medicare card.

  • Nominated bank account details, where interest payments will be made, as well as the principal returned to once the term is up.

  • Tax file number.

  • Phone number and email address (if there are multiple account holders, there needs to be phone and email details for all).

Term length and conditions

Judo currently offer the following term lengths, and options for the frequency of interest payments. There is currently a 5 basis point discount for annual interest payments compared to receiving the entire amount at the terms conclusion. For those who want monthly interest payments, the rate is 10 basis points lower than the equivalent product with end of term payments.

All products are available for deposits between $1,000 and $999,999.

Term length

Payment options

Three months

Interest paid monthly or at the end of term

Six months

Interest paid monthly or at the end of term

Nine months

Interest paid monthly or at the end of term

One year

Interest paid monthly or at the end of term

Two years

Interest paid at the end of term, annually or monthly.

Three years

Interest paid at the end of term, annually or monthly.

Four years

Interest paid at the end of term, annually or monthly.

Five years

Interest paid at the end of term, annually or monthly.

Fees

There are no ongoing account or establishment fees to open a term deposit account with Judo.

Penalties for early withdrawal

Like many banks, Judo uses a ‘prepayment adjustment’ to penalise customers who withdraw their money before the term’s conclusion. This amount is subtracted from the interest payments or the principal when the money is withdrawn.

Percentage of term elapsed

Prepayment adjustment (as a percentage of the interest rate)

0% to less than 20%

90%

20% to less than 40%

80%

40% to less than 60%

60%

60% to less than 80%

40%

80% to less than 100%

20%

For example, let's say you have a $10,000 term deposit for one year at 5% p.a, but withdraw it after six months (180 days). The total interest you have accrued is $246.57. (($10,000*0.05/365)*180).

Since 50% of the term has lapsed, the prepayment adjustment is 60%. $246.57 * 0.6 = $147.94. This is the prepayment adjustment which is subtracted from the total. You would actually only walk away with $98.63 in interest.

If you had received interest payments monthly on this account, you would already have been paid more than $98.63 in interest. In that case, the amount is deducted from the principal investment, so you still only end up making the prepayment adjusted amount.

Check out the Infochoice term deposit calculator to see how much you could earn here

Loyalty bonus

Judo offers a loyalty bonus for personal term deposit customers who immediately reinvest the principal amount into a new term deposit once the initial one matures. Once the new term concludes, customers receive the loyalty bonus rate on top of whatever the rate was on the new deposit.

The loyalty bonus only applies if the funds stay in the account for the entirety of the second term. It is non cumulative, so you don’t get more than the loyalty rate if you roll the amount over more than once.