- Judo Bank has launched its first retail savings account, offering a top return of 5.10% p.a..
- The top rate applies on balances of up to $250,000 and requires customers to deposit at least $300 per month.
- Analysts have described it as a win for Australian savers.
Judo's entry into the at-call deposit space is a conditional rate savings account, with a base rate of 0.05% p.a. and a bonus rate of 5.05%.
The bonus rate applies when customers deposit $300 or more within a calendar month and applies on balances up to $250,000, dropping to 4.55% p.a. on any portion between $250,000 and $2 million.
That rate is 10 bps higher than the top return available on the ING Savings Maximiser - previously the highest savings account rate on market that doesn't have an age restriction.
Judo is also now offering business and SMSF savings account options with competitive rates.
@savings.com.au A new savings account launched in Australia this week, offering a competitive rate with few conditions. What do you think of it? #savings #ausfinance #fyp ♬ original sound - Savings.com.au
What is Judo Bank?
The neobank has been around for less than a decade and, so, is a less familiar brand than the likes of ING for many Australians.
It doesn't offer retail loans, focusing instead on small-to-medium enterprise (SME) lending. Though it has offered term deposits to retail customers for years - typically advertising some of the highest returns on market.
This is its first foray into the savings account market.
Customers concerned about trusting a digital-only bank with their savings can rest assured Judo Bank has an Authorised Deposit-taking Institution (ADI) licence, which means APRA has reviewed the business and deemed it suitable to receive people's money.
It also means savings kept at Judo are covered under the Financial Claims Scheme (FCS).
Judo Bank savings account rates
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| Bank | Savings Account | Base Interest Rate | Max Interest Rate | Total Interest Earned | Introductory Term | Minimum Amount | Maximum Amount | Linked Account Required | Minimum Monthly Deposit | Minimum Opening Deposit | Account Keeping Fee | ATM Access | Joint Application | Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
0.05% p.a. Bonus rate of 5.30% Rate varies on savings amount. | 5.35% p.a. | $1,097 | – | $0 | $249,999 | $0 | $0 | $0 |
| Promoted | Disclosure | ||||||||
0.05% p.a. Bonus rate of 4.80% Rate varies on savings amount. | 4.85% p.a. | $992 | – | $250,000 | $99,999,999 | $0 | $0 | $0 | |||||||||||
0.05% p.a. Bonus rate of 5.06% Rate varies on savings amount. | 5.11% p.a. | $1,046 | – | $0 | $249,999 | $0 | $0 | $0 | |||||||||||
0.05% p.a. Bonus rate of 4.31% Rate varies on savings amount. | 4.36% p.a. | $890 | – | $250,000 | $99,999,999 | $0 | $0 | $0 |
Below are the initial rates on the retail, business, and SMSF products Judo now offers:
| Base rate | Bonus rate | Total | |
|---|---|---|---|
| Retail | 0.05% p.a. |
|
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| SMSF | 0.05% p.a. |
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| Business |
| N/A |
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Does Judo offer more flexibility than the major banks?
The Judo savings account is notable among bonus rate products in that its only requirement is to deposit a certain amount each month.
Many of the major banks require customers to grow their balance each month or make no withdrawals in order to receive the top rate, meaning Judo product allows customers greater access to their savings.
Savings.com.au spokesperson Dominic Beattie says Australian savers are "crying out" for simple high-interest options that don't have "endless hoops".
"At a time when many banks rely heavily on complex bonus‑rate criteria, a 5.10% ongoing rate with one straightforward monthly deposit requirement is a huge win for savers," he said.
"Judo’s entry into personal savings is particularly exciting given its strong track record in business banking and term deposits.
"Their ability to offer market‑leading rates stems from their focus on business lending, which typically carries higher interest margins - and now everyday Australians get to share in that benefit."