- Judo Bank increased term deposit rates by 0.10% across one- to five-year terms.
- Depositors locking in for four or five years can now earn 5.60% p.a.
- Judo currently leads the market for monthly-interest term deposits across one- to five-year terms.
The challenger bank on Thursday increased term deposit rates by 10 basis points (0.10%) across its range, with savers now able to earn 5.60% p.a. on four- and five-year terms with annual interest payments.
See also: Guide to Judo Bank term deposits
Here are the latest term deposit rates from Judo Bank:
Term | Rate | Deposit size | Interest paid |
One year | 5.55% p.a. | $1,000 - $2m | End of term |
Two years | 5.55% p.a. | $1,000 - $2m | Annually |
Three years | 5.55% p.a. | $1,000 - $2m | Annually |
Four years | 5.60% p.a. | $1,000 - $2m | Annually |
Five years | 5.60% p.a. | $1,000 - $2m | Annually |
The latest adjustment has narrowed the gap between Judo's 12-month term deposit rate of 5.55% p.a. and the market-leading 5.60% p.a. offered by Community First Bank for end-of-term interest payments.
But 12-month depositors looking for monthly interest payments will find the highest rate at Judo Bank with its 5.45% p.a. offering.
See also: Top 12-month term deposit rates
The bank also holds the market-leading rates for two- to five-year term deposits with monthly interest payments.
Judo Bank's new rates apply to personal, business and SMSF customers.
12-month term deposit rates offered by the big four
Smaller banks have typically offered the more competitive rates in the term deposit space compared to the bigger players.
But for depositors who prefer to park their funds for 12 months in any of the four major banks, here are the current rates and conditions that may apply:
Bank | Rate | Deposit size | Interest paid | Conditions |
CBA | 5.30% p.a. | $5,000 - $5m | At maturity | Opened or renewed by personal or SMSF customers |
Westpac | 5.30% p.a. | $5,000 - $2m | Monthly, half yearly, at maturity | Existing Westpac customers opening or renewing online only |
NAB | 5.30% p.a. | $5,000 - $1,999,999 | At maturity | - |
ANZ | 5.30% p.a. | $5,000 - $1,999,999 | At maturity | - |
See also: Big 4 term deposit rates
Fifth-largest bank Macquarie still has the lead against the big four, currently paying 5.35% p.a. at maturity.
Note, however, that Macquarie’s rates apply to larger deposits, starting at $25,000 up to $1 million.
Is now a good time to lock in a long-term term deposit?
Judo Bank’s latest rate rise may appeal to savers seeking certainty over a year or longer.
According to Savings.com.au's database, Judo currently holds the top spot for two- to five-year term deposits with annual interest payments, while also leading the market for monthly interest payments across one- to five-year terms.
See also: Top term deposit rate for 2, 3 & 5 years
While locking in a rate can protect against future rate falls, it may also leave depositors unable to take advantage of higher rates if competition intensifies further.
The RBA raised the cash rate by 25 basis points to 4.60% in September and has indicated further increases remain possible if inflation does not ease as expected.
Westpac and ANZ bank economists are expecting another rate increase in November, which could pave the way for further increases to savings and term deposit rates.
See also: Which banks are lifting savings account rates after RBA September hike
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Want to earn a fixed interest rate on your cash? The table below features term deposits with some of the highest interest rates on the market for a six-month term.
| 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 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
5.25% p.a. | At Maturity | 6 months | $5,000 | $19,999 | – | – | |||||||||||||
5.20% p.a. | At Maturity | 6 months | $10,000 | $5,000,000 | – | – | |||||||||||||
5.35% p.a. | At Maturity | 6 months | $1,000 | $1,000,000 | – | – |
