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Established in 2016, Judo Bank is a ‘neobank’, or ‘challenger bank’, that is focused on small and medium enterprise (SME) lending, and has also branched out to provide term deposits for individuals as well as businesses.
As one of the many neobanks that have entered the Australian market over the last decade or so, it operates solely online, using advanced technology to cater to customers in Victoria, New South Wales, Queensland, Western Australia, South Australia, Tasmania and the ACT. While its digital focus may give it a competitive edge over industry heavyweights such as ANZ, CommBank, Westpac and NAB, it says it offers a traditional approach to service that is built on establishing a direct relationship with the customer.
What Products Does Judo Bank Offer?
Judo Bank aims to help SMEs grow, by lending them the funds to take advantage of the growth opportunities that come their way. Businesses can choose from four loan products:
- Business Loan: You can borrow a lump sum for a fixed term, pay principal and interest or interest only. The interest rate may be fixed, variable or a combination.
- Line Of Credit: Allows you to draw up to a set limit with no scheduled repayments, over a 12-month term before an annual review. It comes with a variable interest rate.
- Equipment Loan: Assists with the funding of business equipment, including vehicle purchases, where a charge is taken over the asset, for terms of up to five years.
- Bank Guarantee: A financial safety net ensuring that payments to your landlord, customer or supplier are covered if you fail to meet contracted financial obligations.
Businesses can borrow a minimum of $250,000, and will receive tailored advice from one of the bank’s relationship managers.
Does Judo Bank Offer Home Loans?
Yes, Judo Bank offers variable rate deals where your loan’s interest rate will fluctuate depending on the movements of the RBA’s cash rate, and fixed rate loans, meaning your interest rate is locked in for a set period before reverting to Judo Bank’s standard variable rate. You can also choose a combination of the two so your home loan is partially fixed and partially variable.
Loan amounts range from $100,000 to $2 million, and can be paid off over a term of one to 30 years.
Does Judo Bank Provide Term Deposits?
Judo Bank is also making a name for itself as a personal, business and self-managed super fund term deposit provider, with competitive interest rates. They are as high as 5.10% p.a. on one-year terms if interest is paid annually, and on nine-month terms if interest is paid at maturity. You can also qualify for a Loyalty Bonus if you roll over your principal to another term deposit with Judo Bank, once it reaches maturity.
You have the flexibility to invest as little as $1,000 to anything up to $1 million online. Anything over this amount can be requested from the bank over the phone. Flexibility also extends to term lengths, which range from three months to five years, and when you can expect to receive the interest on your investment, with the option for it to be paid at maturity, monthly or annually for most term lengths.
Find a full breakdown of the Judo Bank’s personal term deposit rates as of 23 February 2024 below. Note that rates may change by the time you apply:
To apply for this product you must be aged 18, Australian and have a residential address in this country.
Frequently Asked Questions (FAQs)
Is my money safe with Judo Bank?
Yes, the Australian government’s Financial Claims Scheme (FCS) protects deposits of up to $250,000 per person with authorised deposit-taking institutions such as Judo Bank.
What is the difference between a savings account and term deposit?
Savings accounts and term deposits are similar in purpose, both allowing money you’ve set aside to accrue interest. Term deposits typically offer a fixed interest rate, which means you will know what to expect in returns on your money.
Another key feature of a term deposit is your savings are locked away, which means you won’t be able to dip into them as and when you please as you would if they were in a savings account. Term deposits can therefore make it easier to save for your financial goals, but the inaccessibility of funds can be an inconvenience for some. Often banks will require you to give up to 31 days’ notice should you decide to withdraw funds, as is the case for Judo Bank.
How do I apply for Judo Bank’s products?
You can fill out an application for Judo Bank’s term deposits on its website. For other financial products, or for advice, you can contact its customer service team on: 13 58 36.
