Judo Bank Term Deposit: Rates, Safety & Comparisons

Judo Bank has built a reputation for consistently offering some of the most competitive fixed-rate term deposits in the Australian market. With rates climbing past 5% again, the neobank is giving the big four a serious run for their money — its 12-month rate sits at 5.45% p.a., a full 175 basis points above what Commonwealth Bank is offering on equivalent terms.

1-Year Rate: 5.45% p.a. · Min Deposit: $1,000 · Term Lengths: 3 months to 5 years · Max Rate: 5.50% p.a. (5 years) · Eligibility: Australian citizens or permanent residents over 18

What is a Judo Bank Term Deposit?

Judo Bank operates as an Australian neobank focused on business and personal banking, with term deposits standing out as one of its most competitive products. The bank offers fixed-rate term deposits designed for individuals, Self-Managed Superannuation Funds (SMSF), and business customers.

Term lengths available

Judo Bank lets customers lock in rates across terms ranging from three months through to five years. The 12-month option at 5.45% p.a. has emerged as the most popular choice among retail investors comparing value across the market.

Minimum deposit requirements

The minimum opening deposit sits at $1,000 for personal term deposits, making Judo accessible to first-time savers while maintaining the deposits attractive to high-net-worth individuals — the maximum allowed is $2,000,000 per account.

Fixed rate and loyalty bonus

Every Judo Bank term deposit carries a locked rate for the full term, protecting customers from rate cuts during the investment period. On rollover of the full deposit, Judo adds a 0.05% p.a. loyalty bonus to the standard rate, providing a modest but meaningful reward for customer retention.

Is Judo Bank Term Deposit safe?

For Australian investors evaluating where to park their savings, deposit protection ranks among the top concerns when choosing a bank.

Protection for deposits

Deposits up to $250,000 per account holder are guaranteed under the Australian government’s Financial Claims Scheme. This means if Judo Bank were to fail, the government would step in to repay eligible depositors up to that threshold — the same protection that applies to all authorised deposit-taking institutions in Australia.

Eligibility for Australian residents

To open a Judo Bank term deposit, applicants must be Australian citizens or permanent residents aged 18 or older. The bank also requires customers to be Australian residents for tax purposes, which aligns with standard Anti-Money Laundering and Know Your Customer requirements.

Which Bank has the highest interest rates for term deposits?

Three term deposit providers compete closely for the top spot in the Australian market, each with distinct strengths across different term lengths.

Judo Bank rates overview

Judo Bank’s official rates as of April 2026 show a 12-month term at 5.45% p.a. and a 24-month term at 5.40% p.a. The bank’s standout offering is the 5-year term at 5.50% p.a., which represents one of the highest long-term fixed rates available from any Australian neobank. For comparison, Judo won the Finder Awards 2026 for best term deposit, with judges noting it “consistently had one of the best rates” throughout the 2025 judging period.

Market comparisons

Judo Bank’s 12-month rate of 5.45% p.a. sits comfortably above Commonwealth Bank’s limited-offer rate of 3.70% p.a. — a gap of 175 basis points that translates to roughly $875 extra per year on a $50,000 deposit. Heartland Bank challenges Judo closely at 5.40% p.a. for 12 months, per Canstar, while Heartland also edges ahead on some short-term products at 5.60% p.a. Gateway Bank matches Judo’s 12-month rate exactly at 5.45% p.a., creating a two-way tie at the top of that segment.

When comparing across the market, Judo Bank’s 12-month and 5-year rates stand out versus the big four, though smaller challengers like Gateway Bank and Heartland Bank run close in specific segments.

Is my money safe in a term deposit?

Term deposits rank among the lowest-risk savings products available in Australia, but understanding exactly what protection exists — and where its limits lie — matters before committing funds.

Risks and protections

The Australian government’s Financial Claims Scheme covers deposits up to $250,000 per institution per depositor, meaning Judo Bank customers are fully protected within that threshold regardless of how much is deposited. However, amounts exceeding $250,000 carry uninsured risk, which is why high-value depositors sometimes split their savings across multiple institutions. The other main risk is early withdrawal: Judo Bank requires 31 days notice and applies an interest adjustment based on the rate applicable for the term actually elapsed, with an adjustment to 90% of the agreed rate if less than 20% of the term has passed.

What is the main disadvantage of a term deposit?

Fixed-rate term deposits deliver predictable returns, but that predictability comes with specific trade-offs that every potential investor should weigh before locking in funds.

Liquidity issues

The core disadvantage is liquidity: once money is committed to a term deposit, accessing it before maturity requires giving 31 days notice and accepting an interest rate adjustment. For someone who might need emergency access to funds, this rigidity can prove costly or impractical. The early withdrawal penalty means investors sacrifice some or all of the premium they earned by choosing a longer term.

No compounding

Unlike savings accounts that credit interest monthly and allow compound growth, Judo Bank term deposits pay interest annually or at maturity depending on the chosen frequency. This means customers don’t benefit from interest-on-interest accumulation within the term, which can meaningfully reduce total returns compared to a high-yield savings account with regular compounding — particularly over longer terms like five years. The interest is earned on the original principal only, not on accrued interest.

Judo Bank Term Deposit Specifications

Six key specifications define the Judo Bank term deposit offering, with variation by deposit size and customer type.

The specifications table below summarises what you need to know before applying, including deposit limits, interest payment choices, and any penalties for early exit.

The specification sheet makes it clear: Judo Bank keeps the product simple with no fees and identical rates across personal and SMSF accounts, but the early exit penalty is stiff enough that locking in a term is a genuine commitment.

Clarity on Judo Bank Term Deposit

Not everything about Judo Bank’s term deposit offering is equally settled. Here is what we know for certain and what remains unclear.

What Experts Say

Judo Bank Term Deposit was the winner in the 2026 Finder Awards. It was the best term deposit in the 2025 Finder Awards as it consistently had one of the best rates.

— Finder (comparison site, annual rate awards)

Right now, in 2025, Judo Bank and Rabobank have the top 5-year term deposit rates in Australia — both coming in at a very attractive 4.30% p.a.

— Star Investment (investment guide, 5-year rate focus)

For Australian savers, the choice between Judo Bank’s term deposit and alternatives depends on two factors: how long you can lock funds away, and whether you need access to them before maturity. Judo shines for 12-month and 5-year investors who want rate certainty without the big four’s lower returns. For shorter terms or those needing flexibility, Heartland Bank or a high-yield savings account may serve better — but for fixed-rate certainty with a recognised market leader, Judo Bank belongs at the top of the shortlist.

Related reading: Great Southern Bank – Guide to Locations, Services and Routing

Judo Bank’s offerings compare favorably to CBA term deposit rates, providing competitive edges in rates and safety up to $250,000.

Frequently asked questions