5.45% p.a. 6- & 12-Month Term Deposits (Interest Paid on Maturity) on Balance $1,000 to $1 Million @ JudoBank

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puglikesabargain on 05/07/2023 - 18:06 judo.bank (449 clicks)
Last edited 06/07/2023 - 02:36 by 1 other user

Personal term deposit rates at JudoBank increased again today - effective 5 July 2023.

The rates are competitive with ING, Virgin Money, UBank 'at-call' saver accounts but note that term deposits pay fixed rates (and the rate, upon opening, will not move over the term of the respective deposit in response to any RBA official cash rate (OCR) changes).

Minimum deposit is $1000. Maximum investment of $1 million. Choice of deposit terms up to 5 years with interest paid at maturity, annually or paid monthly

Example: 5-year term deposit (interest paid at maturity) - 5.25% p.a. (a possibly attractive option should rates 'peak' in the short-to-medium term)
6 months and 1-year term deposits (interest paid at maturity) - 5.45% p.a.

JudoBank is covered by the Financial Claims Scheme - the government-backed safety net for deposits of up to $250,000 per account holder per ADI.

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  ATangk on 05/07/2023 - 18:11

  +8

  Paid at maturity = less interest than equivalent interest rate paying daily (which savings accounts are).

  Still thinking theres going to be more rate increases though in the short term, and won't be dropping within 6 months at the very least. (Not an economist)

  • 

    zed264 on 05/07/2023 - 18:14

    +3

    To be fair, ecomists' forecast, or guess is different every second week in this fast changing enviroment

    • 

      ATangk on 05/07/2023 - 18:16

      +8

      yeah, but my main point really is that the first point.

      Monthly interest option at 5.35% is actually equivalent to 5.48% annually compounded, making it better than their annual 5.45% option.

      But really, for $1000 deposit that is a difference of 30c. So whatever really.

      Use this if needed: https://moneysmart.gov.au/budgeting/compound-interest-calcul…

      • 

        yht on 07/07/2023 - 19:48

        It won't be compunded. Any interest earned will be paid into your bank account and not added to your term deposit account. Suitable for someone who wants to have monthly income.

  • 

    dyziplen on 05/07/2023 - 18:56

    +3

    Term deposits are usually paid at maturity, the key is whether its compounding or not. Since I can't find the word "compounding" in the T&C, I assume its not.

    • 

      ATangk on 05/07/2023 - 19:29

      +1

      Usually but not always.

      If you scroll down a bit, there is a table which lists the term lengths, and the rates whether they are paid: At Maturity, Paid Monthly, and Paid Annually. That is the distinction.

    • 

      jjcf on 05/07/2023 - 19:46

      +1

      Term deposits aren’t compounding instruments.

  • 

    Bettyboo on 05/07/2023 - 19:04

    +1

    True, only worth it if you know interest rate coming down. Not at this rate, more to come

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  dudleydoright on 05/07/2023 - 18:14

  Would the rate rise when the RBA next raises rates? Best I can tell they're fixed at the time of application.

  • 

    puglikesabargain on 05/07/2023 - 18:15

    +1

    fixed from time of opening the deposit on-line

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  bk1973 on 05/07/2023 - 18:55

  +2

  If you choose the "interest paid monthly" and a 12-month term, then I assume interest earned will be taxable in the 2023-2024 tax year. But if you chose "interest paid at maturity" and did 12 months, the interest wouldn't be part of the 2023-2024 tax year at all. Could be a way to shift some taxes to the following year (which may not suit everyone, but there could be some special cases).

  • 

    puglikesabargain on 05/07/2023 - 19:36

    +1

    Yes indeed, it can be an effective income-shifting strategy for taxation purposes

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  Meaty on 05/07/2023 - 19:00

  Use their term deposit service before, setup quite easy through their website but if you want break the term deposit early or contact with real life person, good luck 🤞. Their customer support really hard to get in touch, it might takes couple of days to be able speak with someone from judobank.

  • 

    nned2say on 05/07/2023 - 19:11

    +2

    To be fair, your complaint applies to the majority of banks, if not every one. lol.

  • 

    puglikesabargain on 05/07/2023 - 19:43

    My experience in calling their contact centre was good when having to arrange early withdrawal of term deposits…no long queue waits each time and staff were very helpful,…but that's just my experience

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  Thrifty Dan on 05/07/2023 - 19:41

  Wow, if you are German the name Judo bank sounds a little bit wrong.

  • 

    payless69 on 06/07/2023 - 09:08

    Watch any footage of riots and see for yourself to what stores get looted first! Sad to see!

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  RG146 on 05/07/2023 - 22:45

  +1

  Grouse Aussie bank. Easy to setup and deposit funds.

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  payless69 on 06/07/2023 - 09:09

  Speaking to an accountant: Hmmmmmm

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  yht on 07/07/2023 - 19:45

  +1

  Applied and have to wait for their verification of money laundring stuff. Not sure how many days to wait for the bank account details to transfer to.

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  yht on 07/07/2023 - 19:52

  +1

  I would reckon if the consumer spending is lower again this month and more unemployment, then RBA will not increase the interest rates in Aug; ie. put on hold again. If not, it will be another increase of 0.25% at least once this year before starting to going down next year. But… who knows what will happen in the next few months, maybe another war, covid, etc that can trigger the increase. Who knows. (not an expert opinion).

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  Ave Maria on 08/07/2023 - 18:47

  +1

  So how do you monitor your TD - online banking ? Smart App? Both? I will also have a look at their web site. Only interested for my SMSF at this stage.

  OK - answered my own question "Our Judo Bank Personal Term Deposits are offered online only"

  They also seem to have one of the best features from the old Ubank that fully supported SMSF accounts before they dumped (killed) the business to NAB.

  You can fund the term deposit via Bpay. Brilliant = no daily transfer limit from most banks (means I do not have to call & stay on hold to increase my daily limit)

  • 

    yht on 08/07/2023 - 20:43

    I would transfer daily to fund the TD.

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  Ave Maria on 30/07/2023 - 16:11

  As the 5.45% offer is not longer valid (for over a week now) , should this offer be marked as expired ?