Judo Bank trumps 12-month leaders with standout 5.65% offer
- Judo Bank lifted its 10-month term deposit by 60 bps to 5.65% p.a.
- The new 5.65% rate is the highest term deposit rate currently available
- Gateway Bank raised its 12-month rate to 5.55% p.a., 5 bps below the current top rate on 12-month terms
Judo Bank's 5.65% p.a. rate for a 10-month term deposit gives savers the highest term deposit rate across all terms, following a 60 basis point boost to overtake the current crop of 12-month offers paying 5.60% p.a.
The challenger bank on Thursday also increased rates across most of its longer-dated term deposits while trimming its popular 12-month offering by 10 basis points.
Judo lowered its 12-month term deposit rate to 5.45% p.a., although it remains among the more competitive rates available for that term length.
See the latest rates from Judo Bank:
Term | New rate (change) | Deposit size | Interest paid |
10 months | 5.65% p.a. (+60 bps) | $1,000 - $2m | End of term |
12 months | 5.45% p.a. (-10 bps) | $1,000 - $2m | End of term |
Two years | 5.60% p.a. (+5 bps) | $1,000 - $2m | Annually |
Three years | 5.60% p.a. (+5 bps) | $1,000 - $2m | Annually |
Four years | 5.65% p.a. (+5 bps) | $1,000 - $2m | Annually |
Five years | 5.65% p.a. (+5 bps) | $1,000 - $2m | Annually |
All rates apply to deposits between $1,000 and $2 million, with interest paid at maturity for the 10- and 12-month term deposits and annually on terms of two years and longer.
Customers who opt for monthly interest payments receive rates 0.10% below the equivalent annual and at maturity pay option.
Judo Bank's short-term play
The move comes amid a fresh round of term deposit rate adjustments across the market, with most recent increases concentrated in the popular 12-month term.
Bank Australia and Qudos recently lifted 12-month term deposit rates to 5.60% p.a., creating a three-way tie with Community First Bank at the top of the one-year market.
Judo's latest changes to its 10-month product suggest the bank is targeting savers who prefer a shorter lock-in period, though notably, the 10-month rate now matches the bank's four- and five-year term deposits.
This means Judo Bank customers can earn the same 5.65% p.a. return whether they commit their funds for 10 months or up to five years.
Gateway Bank joins the latest round of increases
Gateway Bank also nudged selected term deposit rates higher this week, as seen below:
- 3-month term deposit: 5.10% p.a. (+5 bps)
- 12-month term deposit: 5.55% p.a. (+5bps)
The increase places Gateway 5 basis points below the current market-leading rate for 12-month terms and on par with AMP Bank and Heartland Bank.
Deposit war gathers pace
The latest flurry of increases comes ahead of next week's Reserve Bank meeting, with economists and financial markets increasingly expecting another cash rate increase.
All big four banks are now in line with their forecasts of a November rate hike, after Australia's inflation rate accelerated to 4.3% in September.
Following the CPI release on Wednesday, CBA and NAB abandoned their previous call of a November hold and now expect the RBA to lift the cash rate by 25 bps to 4.85% on Melbourne Cup Day.
See also: Big four banks say RBA to lift the cash rate to 4.85%
Despite the recent increases, the highest savings account rates continue to sit above most term deposit offers, with some accounts still paying more than 6% p.a. for eligible customers.
Advertisement
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 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
5.35% p.a. | At Maturity | 6 months | $1,000 | $1,000,000 | – | – | |||||||||||||
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 | – | – |
