Judo Bank unveils market leading 6 month term deposit rate of 2.12%
Monday 30 March 2020
Judo Bank has opted to increase its six-month term deposit rate to 2.12% p.a. today, joining several other banks that have hiked rates following this month’s surprise RBA cut. The 2020 Mozo Experts Choice Award winner now offers rates of between 2.05% p.a. and 2.15% p.a. on three month to five year terms.
For an idea of how much you stand to earn by locking away your savings, a balance of $50,000 earning 2.12% p.a. over six months would give you $530 in interest. In comparison, the current average six month term deposit rate (1.37% p.a.) will only get you $342.50.
Among providers tracked by Mozo, Judo Bank is one of only two that offer rates of at least 2.00% p.a. on longer terms. The other serious competitor is Rabobank, which offers rates of 2.00% p.a. on six month terms and an impressive 2.25% p.a. on five year terms.
What has the rest of the market done?
While savings and term deposit rates had been falling for more than a year, things took a turn for the better after the RBA’s extraordinary decision to lower interest rates to 0.25% on March 19.
Since then, there’s been mounting pressure on banks to extend support to Australian households and businesses, and they’ve responded with substantial cuts to fixed home loan rates, increases to term deposit rates, and plenty of support for business customers.
The big banks were quick to announce a number of changes across their product suites, with CommBank and Westpac both increasing 12 month term deposit rates by 0.70% and NAB bumping up 10 month term deposit rates by 0.85%.
We’ve also seen a similar response from smaller banks, who have been eager not to let their larger competitors peel off any more customers. In the past week, AMP, Suncorp and ING have followed the major banks’ example and lifted term deposit rates.
It’s important to note that most of these changes are being made to terms of one year or less, and anyone after longer investment options that offer similarly high rates will have fewer options available to them.
“This may give people some interest income security for a little while, but it won’t be much help in the long run, as it’s likely we are looking at an extended period of low interest rates that could persist for quite a few years,” said Mozo’s banking expert Peter Marshall.
For a look at how Judo Bank’s term deposits stack up against other offerings on the market, head to our term deposit comparison page, or have a quick browse of the selection below.
Term DepositGo to site
Term DepositGo to site
Online Term DepositGo to site
PromotedTransport Mutual Credit Union
Term Deposit SpecialGo to site