Great interest rates in IMO, never heard of the bank myself but they are ASX listed.
Min. deposit is $1000
| Term | @Maturity | Paid Annually | Paid Monthly |
|---|---|---|---|
| 3 Months | 1.25% p.a. | 1.25% p.a. | 1.15% p.a. |
| 6 Months | 2.10% p.a. | 2.10% p.a. | 2.00% p.a. |
| 9 Months | 2.45% p.a. | 2.45% p.a. | 2.35% p.a. |
| 1 Year | 2.70% p.a. | 2.70% p.a. | 2.60% p.a. |
| 2 Years | 3.50% p.a. | 3.45% p.a. | 3.40% p.a. |
| 3 Years | 3.80% p.a. | 3.75% p.a. | 3.70% p.a. |
| 4 Years | 3.85% p.a. | 3.80% p.a. | 3.75% p.a. |
| 5 Years | 4.05% p.a. | 4.00% p.a. | 3.95% p.a. |
It dipped a little but overall been stable. Hope it drops more.
What is the good way to track it?
Any particular website?
The state real estate authorities (REIV in Victoria for example) release data monthly and more relevantly quarterly. The RBA normally says something about it too as well as ABS.
Expect a 5% fall over the next few months and 15% for the year.
Hodl landlords, HODL.
You can do it.
This mob are totally fine. I had a term deposit with them last year, all good, great customer service and with the government guarantee up to $250K nothing to worry about.
After blending all customer deposits, Judo basically buys money at ~3% (average interest paid to term deposit customers) and then lends it out to various small business owners at ~6%
Many safety factors to consider with investing into a "challenger" bank so research carefully
The current share price being just higher than all time lows does not inspire confidence
I did post this on another thread but your answer is the best actually in terms of why they can offer this much. 90% of their loan book is loans to businesses.
The only thing for the average user is that their deposits are insured up to 250k by the government, so they don't have to worry about the specifics if they are below this sum
Under the Financial Claims Scheme, deposits are protected up to a limit of $250,000 for each account holder at Judo Bank, for more information please visit www.fcs.gov.au.
I remember my first term deposit in 2007 was 8.25% interest, looking forward to that again.
AMP also has some pretty competitive term deposit rates. E.g. 1.90% pa for 5 months, 3.30% pa for 18 months.
Thanks it seems the Judo rates are not significantly higher than AMP for some term lengths
Not sure how current the rates are (true rates can be had at the application stage but I cbf)
From Judo website just now so it’s just indicative of difference compared to AMP
Term
3 Months 1.25% p.a.
6 Months 2.10% p.a.
9 Months 2.45% p.a.
1 Year 2.70% p.a.
2 Years 3.50% p.a.
3 Years 3.80% p.a.
4 Years 3.85% p.a.
5 Years 4.05% p.a.
As far as it goes, I expect the RBA will raise the rates to minimum 3% in 2023 which means this 5 year term deposit might become 6-7% next year.
The Australian national debt is already +$600B.
There aren't enough taxes to pay it for now. The RBA will be adding another nail to the ⚰️ with every rate hike.
2017 500.979 n/a 41.0%
2018 531.937 n/a 41.4%
2019 541.992 n/a 41.8%
2020 684.298 n/a n/a
2021 Approx. 834.000 n/a n/a
Is the RBA really going to rekt the economy?
"The economy" is irrelevant with runaway inflation, so yes, they will. That's their main reason for existence.
The economy isn't irrelevant.
The last time the economy 🐌 down the 💵 🖨️ turned on.
It will happen again this time.
@rektrading: Eventually, sure. Right now the printers are overheated from the last run, and that's a big part of why interest rates need to go back up. Keeping inflation under control is more important.
Of course there's also the election to consider. Once that has passed, they can go full interest rate hike.
@rektrading: Usually when the rates rise cycle starts given the record high inflation, it will remain minimum a decade. So don't expect it'll fall back to 0.1% anytime soon.
Exactly. What good is the economy if I have to travel 2 hours to work due to housing affordability, can't put petrol in my car, and can't get a steak for dinner, with a decent FT job.
@BusMan247: People will lose their jobs when the economy tank.
They won't have to travel ✌️ hours to work, save heaps of 💵 on fuel and can eat steak for dinner every day.
It'll be like when Rona came to town.
The federal govt doesn’t borrow at floating rates.
Yes make us all get into debt by huge amounts and then raise the rates…thanks for nothing !
make
Lol
True. I waited. The balloon was just too much. $2m for a 100m2 terrace in newtown with no car space.. ridiculous.
Nearly no one could afford to buy the house they already live in.
Wouldn't I be better off investing in a Roth IRA or in high growth stock mutual funds?
Term deposits are zero risk and fixed term. While you might be better off on average, you also have to consider the possibility of losing money. Definitely not a short term solution.
Nothing in this world is zero risk. Bail-ins have happened before and there are plenty of caveats for the govt guarantee. Only $20 billion is covered per ADI.
Roth IRA? That's in the US tax system, not Australia's. It's not an actual investment fund, but an account where one can invest in various options (stocks, mutual funds, options, etc.).
Right now, the stock market is a bit shaky. Some talk of a recession. So it all depends on how much risk a person wishes to take on.
yes, but even EFTs have a certain percentage of their investments in cash. Just as a risk measure
Compare this deal with what you would get if you staked UST on Anchor protocol:
Granted, going with a Defi protocol cones with risks, but the benefits far outweighs the risks imo.
what the heck is this? never seen this before.
you have my attention.
It's crytpo based You're basically using your money to lend crypto to someone else. There's no government guarantee like on a savings account or term deposit. If things go sour, you could lose or perhaps even all of your investment (unlikely, but you never know).
I stopped reading after "crypto"
@TilacVIP: Blows my mind that people still talk about Crypto as though it isn't the same as gambling. Yeah I can double my money on the roulette table too.
@ONEMariachi: Read up on stable coins. UST is pegged to USD and isn't subject to volatility.
There's no gambling here besides the protocol risk.
@FSTB: I've read up on them just fine mate. You're deluding yourself. The number one rule of Crypto, any crypto, is; can you survive losing all of your money. Stable coins are no different.
The number one rule of Crypto, any crypto, is; can you survive losing all of your money. Stable coins are no different
I'm struggling to find any examples of someone losing all their money on a stable coin. Because you know that kind of defeats the purpose of a stable coin.
@FSTB: Ummm… pegged and stable? It lost 77% of its value yesterday (to 23 cents) then fortunately rebounded to just be down 23% (to 77 cents), and right now is at 42 cents.
So the words "stable" and "isn't subject to volatility" clearly do not apply. It's unregulated and you could lose a lot of a deposit.
What is ust
What is anchor
Whats is gas fee
Interesting. I did hear in the past when I was getting into crypto that you can get higher rates than what Celsius/BlockFi offer if you use DeFi but it requires constant effort. Is the Anchor protocol like the automated version of that?
how’s that going for ya rn
This comment did not age well…
timmy is probably not having lol
If you're wondering why their rates are so much higher than what other banks offer, here a quote from their half-yearly report:
"Judo has drawn $2.9 billion from the RBA’s Term
Funding Facility (TFF) which will continue to provide a
benefit to funding costs over the remainder of FY22.
Judo is well positioned to refinance its TFF drawings
before expiry in June 2024."
To spell it out: They have to find $2.9B in the next 2 years to pay back the RBA. Their business is risky, institutional lenders want a premium. For private savers, thanks to government guarantee, there is no (big) risk. Hence their offering is very attractive in comparison to anything with comparable risk. A lot more attractive than Plenti (formerly Ratesetter) for example, similar (or lower) rates at the moment, and risk of loss.
That honeymoon period won't last. Once they get close to funding those $2.9B they will wind back the premium they pay compared to other banks. Great deal now though.
TFF funds are incredibly low rate. It's trivial for them to pay that back - don't think it has anything to do with their term deposit rates.
They are replacing TFF funds at 0.1% with TDs that pay ~4%. Put it that way: if they had more deposits flowing in than they need to fund their loan book and pay back TFF when due, the first thing they would do is lower the rates they are offering. They are not a charity.
They are a very new bank with limited brand recognition. For them, finding $2.9B in deposits is a big deal. It's more than they have found so far since they started out.
They don't need to find 2.9B. They have 2.9B from the loan. They don't need to eat a loss in order to pay that back.
@Autonomic: If you look at their balance sheet you'll see that they don't have the 2.9B lying around in cash, they have lent it out to SBEs, most likely as relatively long term fixed rate loans. When they have to pay back the RBA they have to get those funds from elsewhere (i.e. us).
I did some maths, and the 6-month term deposit appears pretty good. The 3-month one is not. You can get 1.25% or more at ING (1.35%), AMP (1.25%) or Virgin Money (1.35% with their new 'lock'). Yes, these come with deposit and/or withdrawal conditions, but so does a term deposit.
My maths started with an ING saver at 1.6%, which came from the current 1.35% and the assumption it will go to 1.6% soon. That left 5 potential rate rises during the 6 months (I assumed a potential rate rises occurred at the start of each month). I did a few variations, and here are some results with their per annum rate (but you'd get half this with a 6-month deposit):
- 2 straight 0.25% increases, then flat: 1.983% p.a.
- 3 straight 0.25% increases, then flat: 2.109% p.a.
- 4 straight 0.25% increases, then flat: 2.193% p.a.
- 5 straight 0.25% increases: 2.235% p.a.
I couldn't simulate every possible combination of rate increases and when they occur. There's likely a 0.15% or 0.4% rise in an upcoming month so that the cash rate is on the quarter-point scale. But hopefully the above gives a bit of insight. Note that it's possible banks do not pass on rate rises in full to saver accounts. Anything can happen.
I see you know your Judo well
Sasae to Uchimata! Ippon!
5 years? Just buy Bitcoin..
Judobank…Will this bank throw you under the bus?
When you apply, you setup your term deposit and it has a start date of todays date and an expiry date as the date you chose (3/6/9/12 months etc) and it says you have 10 days to transfer your funds across. Does it mean you are still getting the interest from day 1 even though they may not get your funds for up to 10 days?
Does this really need to be explained? No.
https://www.judo.bank/frequently-asked-questions
Q: How does Judo Bank calculate interest?
A: Interest begins to accrue on the day the opening deposit is made to the account. Interest is calculated daily, on each daily closing balance during the term
Yes you still getting interest from 1 day but if the balance is zero then you get zero $ interest, make sense? When funds hit the account then you get real $
Wont trust my money unless they have black belt.
Can an expat apply for this?
Not sure what the deal is with this company. Signed up, seemingly worked but then when I log in get:
Account not linked
Sent them a message via their contact link a week ago with no response. Not even an automated response. Pretty poor experience so far.
Huh why down? Should be up as rba rate is up?
They likely have their funding secured, so no longer need to offer higher rates. AMP is an option at slightly higher rates: https://www.amp.com.au/banking/term-deposit/rates-and-fees
Has anyone managed to get through to them on the phone for personal term deposits? Been calling them everyday and no one ever picks up..
Have anyone try to apply from online? 1 I tried four times and all failed with Id check even My medicare card and drive license 100% right. 2, no people will pick up phone and return your email. Even they offer better rate. But customer service is super bad and online apply process is pain.
This needs a 1.5 year term with a rate above 3%
1 year the rate is okay, I would rather put the money into that BOQ account that has 3.0%
But 2 years is too long, i need the money before that.
Interest rate gone high.. has house prices fallen down yet?